I am not tracking Heranba Industries IPO but looks like it is reasonably priced and since chemical companies are flavor of the season it may put up a good show. I found below note from Axis Capital - you can go through it and decide yourself.
Heranba-Industries-IPO-Note-Axis-Capital.pdf (1.1 MB)
Thanks!
65% of their revenues come from the sale of Technicals (Agro equivalent of APIs). I believe other than Astec Life & Bharat Rasayan, no other listed peers make technicals that significantly.
Do u think Heranba can be a good long term Portfolio Stocks?
Or it’s just for Listing gains.
Its a pure long term play
Nazara Technologies IPO - Gaming company
I just spent some time reading about Heranba Industries and one red flag I found is regarding the number of criminal cases pending against the company. There are 18 pending cases and most them are filed by the insecticides inspectors from various states like Punjab, MH and Karnataka for different products (ingredients) manufactured/supplied by the company.
For example, one of such cases read “The insecticides manufactured by our Company were alleged to be misbranded as the active ingredient (Acetamiprid 20% SP) contents did not conform to the standard specifications in the active ingredient test requirement.”
Similar cases for other products like Cartap Hydrochloride 4% GR, Sulfosulsuron 75% WG, Chlorpyriphos 20% EC -etc. so doesn’t look like one-off incidents.
Apart from these, there are cases related to a wide range of issues, such as violations of the environment laws, failure to comply with relevant sections of the companies act -etc. These require proper due diligence in my opinion.
Thanks!
Yes, plus, even though the company is reporting profits the group companies are making losses and if you take that into account the profits are not attractive. plus more than 20% export to China, now even though it is good that they are not importing from but exporting to China, if the situation worsens at the border then Govt policies can cause significant impact imo.
Summary of various brokerage houses report
Bad :
Good :
chemicals sector has been the flavour among investors, but all that glitters is not gold
Disclosure: Hold Sumitomo, will apply HIL Ipo for listing gains.
Heranba Industries’ Chinese dependence is not limited to just exports. An increasing amount of the company’s raw materials is imported from China. In FY20, 13.2% of all raw materials came from China. This is up from 6% of raw materials imported from China in FY18.
Heranba-Industries-IPO-Note-HDFC-Securities.pdf (680.6 KB) Heranba-Industries-IPO-Note-ICICI-Direct.pdf (473.5 KB)
a) There are outstanding legal proceedings involving the company, promoters and certain directors,
(b) Absence of large customers and dependence on smaller customers increases uncertainty of demand which may have an adverse impact on the business operations and financial performance,
© Company has not entered into long-term agreements with the customers for purchasing the products nor for the supply of raw materials with the suppliers
A brief coverage of LIC and the degrowth it has been witnessing:
one can find most of LIC investment details @ below link. But difficult to get how much returns they generated out of these investments. Need to wait for IPO RHP.
https://www.screener.in/shareholders/view/lifeinsurancecorpofind/
I believe traditional Life Insurance is not attractive anymore, those days are gone when people used to buy LIC policy for Life insurance + Maturity amount (which gives around 5% CAGR). the present generation is more attracted to Term insurance thanks to advertisements. plus traditional plans have a higher premium than Term plans, You get better cover for very less premium.
I also believe the generation that invested in traditional policies of LIC is going to get their Maturity amount in coming years, so it is more outflow than inflows of money. now they do have term plans too but again that is costly than other companies and more rigid.
Which is the best IPO analysis and review sites in India?
Chittorgarh is one of those.
Yes Thank you
Even I found SP tulsian Ipo review and Dalal street journal Ipo review to be good .
Especially SP Tulsian . Looked Unbaised .
