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Mumbai: cute lingerie The stock is the third best-performing stock among listed companies this year, doubling its value, as traders bet it can repeat its performance page industrySeller of jockey innerwear.
In about a week, it increased by a third. But the small float and low delivery volumes are a warning against betting on it for some, who fear it may move beyond its fundamentals when many other newly-listed companies are trading below their selling prices. .
“Rally in Lovable Lingerie is hardly a speed game with any real interest,” says Sharad RathiAssociate Director A.T. Almondz Global Securities,
“The appraisal seems a bit odd.” Lovable, which sold shares at Rs 205 per share, rose 109% to Rs 428.5 after touching a high of Rs 462.50 on Friday. Some of the top shareholders include HDFC Mutual Fund, SBI FundsUTI Asset Management and Fidelity, filings show.
The total outstanding shares of the firm are 1.68 crore and the public holding is about 50 lakh shares. The Sensex was down 2.6% during this period and the BSE IPO The index was up 1.6%. Fineotex Chemical and C Mahendra Exports are the two companies that have given more than lovable returns in this year’s IPO.
The stock trades at 31 times forecast earnings for fiscal year 2012, compared to 27 times Page Industries’ earnings. Though the stock had been the top trade in the past few days, the number of shares exchanged remained negligible, due to the limited few days. The volume of shares that actually changed hands – was in the single digits for several days.
The delivery ratio was 2% to 9% between June 10 and 17, when the stock moved up 33% on the BSE, exchange data show. It follows the performance of Page Industries, which has grown by 396% since its IPO in March 2007. The shares which were sold for Rs 396 are trading at Rs 1,784. “Rising disposable income and increasing awareness about personal hygiene are fueling the growth of innerwear market in India,” said Anand Rathi Securities In a recent report.
“There are also increasingly modern business malls, shopping complexes, etc. to fuel this growth,” the brokerage said. 430 has a target price of Rs.
The Rs 93-crore IPO of the Mumbai-based company received a good response and was subscribed 21.8 times the institutional share, 98.5 times among the wealthy and 20.5 times in the retail category. The report said rising raw material prices and intense competition are the two risks to earnings growth.
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