{"id":926,"date":"2021-08-17T06:29:38","date_gmt":"2021-08-17T06:29:38","guid":{"rendered":"https:\/\/www.invest19.com\/blog\/?p=926"},"modified":"2021-11-10T03:27:06","modified_gmt":"2021-11-10T03:27:06","slug":"devyani-int-krsnaa-diagnostics-windlas-biotech-and-exxaro-tiles-have-listed-on-indian-bourses-what-investors-should-do-now","status":"publish","type":"post","link":"https:\/\/www.invest19.com\/blog\/devyani-int-krsnaa-diagnostics-windlas-biotech-and-exxaro-tiles-have-listed-on-indian-bourses-what-investors-should-do-now\/","title":{"rendered":"Devyani Int., Krsnaa Diagnostics, Windlas Biotech and Exxaro Tiles have listed on Indian bourses. What investors should do now?"},"content":{"rendered":"
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The month of August is famous for various national holidays\nand festivals but availability of 8 IPOs for subscription and that too in the\nfirst half only has shifted the spotlight. Yum! brands franchisee holder\nDevyani Intenational, Krsnaa Diagnostics, Windlas Biotech and Exxaro Tiles; 4\nIPOs have listed on a single day and history has been created. The trend of\ndecent listing seems intact as out of four, three IPOs have listed on premium\nwhile Windlas Biotech is listed on discount. This has put investors in dilemma\nwhether to stay invested or liquidate positions.<\/p>\n\n\n\n

Earlier, all IPOs opened on August 04 and received a decent\nresponse in the primary market. Pizza Hut, KFC and Costa Coffee operator\nDevyani International received a stellar response from the investors. The QSR\noperator was subscribed 116.70 times while the other IPOs Krsnaa Diagnostics,\nWindlas Biotech and Exxaro Tiles were subscribed 64.38x, 22.44x and 22.65x\nrespectively.<\/p>\n\n\n\n

Devyani International<\/strong><\/p>\n\n\n\n

Leading QSR operator of India managing finger-licking chicken, crispy crust pizza and delicious coffee has debuted on the Indian bourses with 51% listing gains. QSR operating stocks have been provided decent premiums by the investors due to higher operating margins and under-penetration. The firm operates 655 stores across 155 cities, as of March 31, 2021. Their business is broadly classified into three verticals that include stores of KFC, Pizza Hut and Costa Coffee operated in India referred to as \u2018Core Brands\u2019 while brands such as Vaango and Food Street referred as their \u2018Other Business\u2019. Out of the \u2018Core Brands\u2019, KFC generates 66% of the total revenues. <\/p>\n\n\n\n

Must Read: How to apply IPO through Invest19 app?<\/a><\/p>\n\n\n\n

Prior to the listing, Devyani International was cheaper in\ncomparison with Jubilant Foodworks, Burger King and Westlife Development. With\nan Enterprise value of Rs. 15,068 cr., the stock has reached at an EV\/Sales\nparameter of 12.56x higher than Westlife Development and Barbeque Nation but\nlower than Jubilant Foodworks and Burger King India. While, EV\/EBITDA multiple\nis shoot to 62x in line with Jubilant Foodworks but lower than Burger King and\nWestlife Development. It seems that there is a little room for valuations of\nDevyani Int. to grow further. At this juncture, investors should be careful and\nbook partial profits while rest of the stocks should be hold to reap more\ngains.<\/p>\n\n\n\n

Krsnaa Diagnostics<\/strong><\/p>\n\n\n\n

A diagnostics chain that works on Government-led (PPP model)\ninvolves diagnostic players entering into a public-private-partnership\nagreement with the government to provide specific diagnostic services\n(pathology, radiology or both) for a specific concession period at predefined\nrates. Public healthcare expenditure in India is aiming to grow steadily from\n1% to 2.5% \u2013 3% of the GDP. India\u2019s current healthcare expenditure is skewed\nmore towards private as against public expenditure but budget for the Ministry\nof Health and Family Welfare is expected to keep the growth intact. The Indian\ndiagnostic industry has grown consistently over the past three fiscals and is\nprojected to grow at a CAGR of approximately 15% between fiscals 2021 and 2023.<\/p>\n\n\n\n

The diagnostics chain is listed at a marginal premium of\n5.3%. The stock price of the firm has reached at a P\/E of 79x, is lower than\nthe Industry P\/E. Diagnostics chains trade at higher premiums led by high\noperating margins, promising industry and higher cash flows. However, the\ninvolvement of administration in Krsnaa Diagnostic\u2019s operations will restrict\ntheir margins going forward. Therefore, investors should book profits at this\njuncture.<\/p>\n\n\n\n

Exxaro Tiles<\/strong><\/p>\n\n\n\n

The rising trend in construction of lavish properties has\nspurred the demand of associated sectors also. General public is very much\ncautionary for high quality ceramics, paint and home d\u00e9cor in order to maintain\nstatus symbol. Exxaro Tiles is engaged in manufacturing and marketing of\nvitrified tiles used majorly for flooring solutions. Their business operations\nare divided into two product categories. 1) Double Charged Vitrified Tiles 2)\nGlazed Vitrified Tiles. The product basket of the company has 1000+ designs\nwhich are marketed under the brand \u2018Exxaro\u2019<\/p>\n\n\n\n

The stock has debuted at the Indian bourses with 5% gain but\nended the day with gains of 10%. Considering the financials of the company,\nExxaro Tiles has reached a P\/E multiple of 30x post listing but still commands\nlower valuations than the industry. EBITDA margins of the company are a little\nhigher than 20% and company has very few competitors. The growth of industry is\nintact as more than 50% of the ceramic demand relies on unorganized channels.\nInvestors should book partial profits and continue to remain invested with the\nresiduals.<\/p>\n\n\n\n

Windlas Biotech<\/strong><\/p>\n\n\n\n

Windlas Biotech is amongst the top five players in the\ndomestic pharmaceutical formulations contract development and manufacturing\norganization industry in India in terms of revenue. The company has over two\ndecades of experience in manufacturing both solid and liquid pharmaceutical\ndosage forms and significant experience in providing specialized capabilities,\nincluding, high potency, controlled substances and low solubility. The firm\nclaims to be the only listed CDMO player in the Indian market.<\/p>\n\n\n\n

The stock is listed at a discount of 5% and extended its losses to 12%. Weakness in the Windlas Biotech is largely attributed to recent correction in the pharma sector. On the financials front, the company is debt-free now and CDMO business claims a promising story due to high entry barriers. Moreover, the clientage list of the CDMO player is strong. Therefore, investors should use the dips and continue to hold it for long term.<\/p>\n\n\n\n

Also Read: Aptus Value Housing Finance has hit the primary market. Should you subscribe?<\/a><\/p>\n

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The month of August is famous for various national holidays and festivals but availability of 8 IPOs for subscription and that too in the first […] Read More<\/a><\/span><\/p>\n","protected":false},"author":1,"featured_media":927,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[70,2,7],"tags":[],"class_list":["post-926","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ipo","category-stock-market","category-investment"],"_links":{"self":[{"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/posts\/926","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/comments?post=926"}],"version-history":[{"count":1,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/posts\/926\/revisions"}],"predecessor-version":[{"id":928,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/posts\/926\/revisions\/928"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/media\/927"}],"wp:attachment":[{"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/media?parent=926"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/categories?post=926"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/tags?post=926"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}