Udayshivakumar Infra debuts at 14% discount at Rs 30

The first list of FY24 grew to become out to be a dud, opposite to analysts` expectancies as Udayshivakumar Infra debuted at a 14 percentage cut price to its trouble charge of Rs 35 on April 3

The inventory opened at Rs 30 at the NSE and Rs 31 at the BSE on Monday.

Incorporated in 2002, the agency is engaged in creation of roads in Karnataka. Its IPO, which became absolutely a clean trouble of Rs sixty six crore, noticed oversubscription of 30.sixty three instances. High net-really well worth people offered 60.forty two instances their allocated quota, certified institutional shoppers 40.forty seven instances and the retail component became subscribed 14.10 instances.

As on December 31, 2022, the agency had forty six paintings orders in hand with an mixture order ee-e book cost of Rs 1,290.39 crore.

But its topline increase has been inconsistent. In FY20, it stood at Rs 193 crore, in FY21, it grew to Rs 210 crore and in FY22, it fell to Rs 185 crore.

"The agency is working in a restricted geographic area wherein it's miles depending on a restricted variety of clients, for that reason we can endorse simplest high-chance traders to shop for in a dip via way of means of retaining a forestall loss," Anubhuti Mishra, Equity Research Analyst, Swastika Investmart, stated.

Reliance Securities in its IPO observe stated that the agency's go back ratios had been declining with the RoE (go back on fairness) and the RoCE (go back on capital employed) declining via way of means of 460 foundation factors and 237 foundation factors to 17.eight percentage and 15.four percentage over FY20-22.

It is, however, bullish at the agency due to its low debt-to-fairness ratio and valuation consolation at 9.7x P/E on annualised FY23 financials.