Reliance Securities | Subscribe for long-term rewards
The brokerage firm believes that the company operates an asset-light business model through leases with its network partners and clients. As the company's margin trend improves on a YoY basis, analysts expect it to smooth further as they focus on the C3 framework: customer, capability, and country.
The issue is priced at 10.5 times based on its net asset value (NAV) of 18.89, as of 31 Mar 2023. Retirement of debt from IPO proceeds, they said, is likely to improve margins. Hence, analysts recommend a 'subscribe' to the issue for long-term rewards.
Swastika Investmart | Avoid
Since the company has a large exposure to the international market, analysts underline this as a key concern if there is a slowdown in global trade. The company also operates in a highly competitive industry, reporting losses in the past two years. Additionally, analysts underline that the IPO valuation at PE ratio of 189x is significantly above industry average of 43.03.
Overall, the brokerage firm said that the risks outweigh potential rewards for the IPO, suggesting investors to stay away.
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