Stock Markets Review
Indian IPOs >> Manaksia

Manaksia Ltd. IPO Analysis
17 December 2007
Source: www.keynoteindia.net

View information about Manaksia, news and price targets.
Download full version of Manaksia IPO analysis (Keynote Capitals) (pdf)
Keynote Capitals set "Subscribe with a long term view" recommendation on Manaksia IPO.

Manaksia Ltd. IPO details:

Price Band: Rs. 140 - 160 per share
Issue open between: December 17 - 19, 2007
Book Running Lead Managers: ICICI Securities
To List on: NSE and BSE
Market Cap post-listing: Rs. 11.1 billion or $282 million (based on the cap price)

Highlights:

Manaksia Ltd. is a multi-product company with a product portfolio that includes value-added metal products, metal packaging, mosquito coils and engineering.

Manaksia has a wide footprint, with subsidiaries in India, UAE, Nigeria and Ghana. We view the geographic footprint, in India and in Nigeria, as a positive. Nigeria, which offers benefits like low raw material prices and fiscal incentives, accounts for as much as 45% of total revenues.

Its operations are spread across 15 manufacturing units in India and 3 international units in Africa, thereby exploiting the location advantages of raw material procurement, fiscal incentives, proximity to customer resulting in reduction in logistic costs and delivery time.

Manaksia has successfully been able to integrate certain parts of its operations across a number of products. It has reduced third party dependence for procuring raw materials, leading to cost reductions and better product quality.

In FY07, metal products constituted 72.5% of aggregate revenues. Going forward, we expect the dominance of metal products to continue, as it further expands its capacity out of the IPO proceeds.

It plans to achieve vertical integration by setting up a steel cold rolling plant of 50,000tpa at Haldia, West Bengal, expected to be completed by December '07. This will provide raw material for its plants for galvanized operations located at Bankura and Nigeria.

Production of mosquito coils lacks synergies with the core business of metal products. Even the core business has an erratic track record of revenue growth.

The IPO is priced at 10.3x FY08E and 8.0x FY09E earnings and EV/EBITDA of 7.6x and 5.8x for FY08E and FY09E respectively. Though the valuation appears to be at a discount to peers, we believe the discount is justified, as peers Bhushan Steel and JSW Steel both have captive power plants.






Freddie Mac reported net loss of $2 billion in 3rd quarter, 21 November 2007

Microsoft reports 23% profit growth for the quarter ended September 30, 2007, 26 October 2007

Countrywide posts $1.2 billion loss, but stocks jump on improving outlook, 26 October 2007

Verint Systems price target reduced, 7 December 2007

Thomas Weisel upgraded Intel to "overweight", 6 December 2007

UBS upgraded price target on Exxon Mobil to $96, 21 November 2007


Nokia's operating margin will raise to 17% over the next to two years, 5 December 2007

Dexia 3rd quarter profit falls 28%, 19 November 2007

J.P. Morgan raised price target on Bayer to 75 euros, 12 December 2007

Panmure Gordon maintains "hold" recommendation on Cadbury Schweppes, 12 December 2007

Societe Generale Securities recommends to "buy" PSA Peugeot Citroen, 11 December 2007


Ballarpur Industries FY08 Results - Concall Notes, 29 August 2008

Indian Market Review from Keynote Capitals: Low Dividend Yield Stocks, 19 August 2008

Pyramid Saimira Theatre Q1 Results update, 5 August 2008

Keynote Capitals maintain "buy" recommendation on Pyramid Saimira Theatre, 5 February 2008

Keynote Capitals recommends to buy Euro Ceramics Ltd., 5 February 2008

Keynote Capitals recommends to buy Pyramid Saimira Theatre, 13 December 2007


On first day of trading Bank of Beijing stock rises 81%, 20 September 2007

Morgan Stanley: price target on China Shenhua Energy is 58 hkd, 11 December 2007

Morgan Stanley raised its price target on China Coal Energy to 27 hkd, 11 December 2007

Price traget on China Energy has been raised to 3.03 singapore dollars a share, 5 December 2007


VTB decided to increase dividends, 13 December 2007

Lukoil published results for the 3rd quarter and first 9 months of 2007, 13 December 2007

Renault bought 25% stake in AVTOVAZ, 10 December 2007

JP Morgan: recommendation on X5 Retail Group is "underweight", 30 November 2007

Merrill Lynch downgrades UES target price 6%, 7 September 2007


Credit Suisse raised price target on Braskem to 22 reals, 4 December 2007


Stock Market News: All News | USA News | European News | BRIC News | Indian News | China News | Russian News | Brazilian News | Other Countries News
Stocks Price Targets: All Stocks | USA Stocks | European Stocks | BRIC Stocks | Indian Stocks | China Stocks | Russian Stocks | Brazilian Stocks | Other Countries Stocks
Companies List: All Companies | Dow Jones 30 Companies | S&P 500 Companies | FTSE 100 Companies | DAX 30 Companies | CAC 40 Companies
Stock Markets Review Newsletter | Financial Links | Asset Protection Services | Simple Loan Calculator