Company has generated strong operating cash flow, which enabled reduction of debt and is expected to deliver better results going forward. Company's focus is to strengthen the balance sheet, invest in strategic opportunities without increasing debt levels and build strong pipeline or products across its businesses.
Strong fundamentals, superior growth in specialty pharmaceuticals and LSI, reduction in debt coupled with renewed focus on the allergy business & strong order book in CMO, helps company to outperform industry growth, expand its market share and provides sufficient business visibility, going forward.
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Investment Rationale
PAN India presence with aggressive expansion in footprint, enrolment growth in its institutes, asset light business model, increasing capacity utilization and increase share of wallet makes ZLL a perfect play to participate in the growing opportunities of Indian education industry.
Company has entered into a new strategic line of manpower recruitment and training business through the newly incorporated subsidiary Liberium Global. This segment generated ` 14.33 Crore revenues in Q3 FY18 . The margins for manpower verticals are on the lower side. However, company see tremendous opportunities for growth. The business being a high ROI and low margin one, company looks to differentiate its offering through value added services and the management is confident that this business will provide robust growth in the future.
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Newgen Software Technologies is a software products company that offers a platform enabling organizations to rapidly develop powerful applications addressing their strategic business needs.
Its platform comprises of :-
- Enterprise Content Management (ECM)
- Business Process Management (BPM)
- Customer Communication Management (CCM)
The company is increasing its geographical footprint by adding more verticals beyond the core five verticals (banking, government, insurance, healthcare and business process outsourcing), which the company has and also by going deeper into existing verticals by offering new products to the clients.
But if we look into the company’s profitability it is declining, margins are low & Valuation is also not so attractive. Considering these factors, issue seems to be risky therefore we are NUETRAL for this IPO.
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Apollo Micro Systems designs, develops and sells high-performance, mission and time critical solutions to defense, space and home land security for Ministry of Defense, government-controlled public sector undertakings and private sector corporate.
Present Issue:- Fresh Issue aggregating up to 156.00 Cr
Taking into consideration, the current market opportunities in defense and Government of India’s initiative, ‘Make in India’ aims to boost the nation’s domestic manufacturing sector as well as to create market by targeting exports, the issue seems to be fairly priced. We recommend to SUBSCRIBE the IPO.
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