IPO Notes Dr. Lal PathLabs: Subscribe (IIFL)

Discussion in 'IPOs And NFOs' started by Vidhi Khanna, Dec 8, 2015.

  1. Vidhi Khanna

    Vidhi Khanna Active Member Staff Member

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    Dr. Lal PathLabs: Subscribe
    Issue opens 08-Dec-15, Issue closes 10-Dec-15, Price band Rs540-550

    Dr Lal PathLabs (DLP) runs diagnostic laboratories chain of 172 pathology labs and 1,554 patience service centers across India. North India accounted for 73% of H1 FY16 revenues and DLP has posted robust revenue and PAT cagr of 21% and 30% respectively over FY13-15 and we expect the momentum to continue with ~19% and 21% cagr respectively over FY15-18E. At the upper price band of Rs550, the stock is priced at ~27x FY18E EPS. We like the underlying business contours: strong brand franchisee, robust balance sheet and healthy free cash flows combined with RoE/RoCE of ~30-40%. We believe premium valuations are justified given the accompanying business fundamentals. Recommend investors to Subscribe at the upper price band.
     

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  2. priya agrawal

    priya agrawal Member

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    Initial Public Offering is a method which a company use for raising funds from public by issuing its shares in the market for the very first time. FPO(Further Public Offerings ) can also be launched if a company wishes to issue more fund from the market.
     
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