Started in 2008, CMS Info Systems Limited is India's largest and also the fifth largest company worldwide for cash management based on number of ATM points and number of retail pick-up points. Company operates its business in three segments:1. Cash management services: which include ATM services, cash delivery and pick-up and network cash management services (together known as "retail cash management services")2. Managed services: which include sale of ATMs and ATM sites and related products and maintenance services3. Others: which include trading in card and card personalization services. CMS has pan-India fleet of over 3,603 cash vans and its network of 282 branches and offices, which as of March 31, 2017 cover all of India’s states, 98.28% of India's districts and over 11,090 Indian postal codes, including difficult to reach and remote rural and semi-urban areas, position them well to take advantage of future opportunities arising from the growth of country's economy. On performance front, RNLAML has posted turnover/net profits of Rs. 712.67 cr. / Rs. 198.96 cr. (FY13), Rs. 784.03 cr. / Rs. 302.30 cr. (FY14), Rs. 930.11 cr. / Rs. 349.59 cr. (FY15), Rs. 1271.07 cr. / Rs. 390.12 cr. (FY16) and Rs. 1400.44 cr. / Rs. 405.57 cr. (FY17). For three months ended on 30.06.17 of the current fiscal, it has reported net profit of Rs. 83.44 cr. on a turnover of Rs. 378.15 cr. Thus company has posted healthy growth over last couple of years on consistent basis. RNLAML has posted an average EPS of Rs. 6.68 and average RoNW of 22% for last three fiscals. Issue is priced at a P/BV of 8.97. It has no listed peers to compare with as per DRHP. If we attribute latest earnings on fully diluted equity post issue, then asking price is at a P/E of around 43.92. As there is no peers to compare, so its difficult to say what will be proper valuations.. As per financials, company's growth is good, RoNW is 22% for last three fiscals and issue is priced at P/E of around 44. Mutual Funds and Asset Management sector is growing at good pace and expected to continue same growth for next couple of years and being one of the largest player of sector with wide network across the country, company expected to show same growth for next couple of years. So we give SUBSCRIBE rating to this IPO.
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