Rolex Rings IPO Review: Apply for LISTING GAINS, Anil Singhvi says – lists positives and negatives – all details here

The Initial Public Offering (IPO) of Rolex Rings Limited opens today. The three-day issue will end on 30 July (Friday). What should the investors do with this public issue? Zee Business Managing Editor Anil Singhvi gives the positives and negatives of the company and also his top recommendations. Take a look!

The Market Guru said that there is a strong track record of the promoters which augurs well for the company. Its is over 5 decades old company, he added. He said that it manufactures rings for bearings and is among the top four companies in this segment in the country.

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The valuations are attractive in comparison to other companies in this segment in terms of Price-to-Earnings multiple, return on equity and profit margins. Rolex Rings has been able to reduce its debt over the last three years with a comfortable debt-to-equity ratio. The anchor book is also very strong, Singhvi further said.

The anchor book is worth Rs 219 cr and the company’s market capitalisations is around Rs 2,500 cr.

Negatives:

One of the negatives is that all the key managerial positions are occupied by the family. There is no outside professional management.

The profit numbers are too good which is sometimes difficult to believe. The company’s revenues were Rs 900 cr in March 2019. In March 2021, this was down to RS 600 cr. However, the profits went up from Rs 60 cr to Rs 87 cr during this period.

The gains in profit during the last financial year was on the back of tax advantages. If the company will be able to sustain these profits in the absence of tax advantage is an answer that can be give by the management.

Though the recent rating by CARE is BB which is not bad but the rating agency had given it a D rating two year ago which indicates default.

Rolex Rings IPO – Anil Singhvi suggests this:

Investors must look at the previous financials. It is unlikely that the stock will be listed at a discount. Investors can apply for listing gains. Any further view on the stock will be taken only after the listing, the Managing Editor said. But it is recommended for investors who want to take risk, he cautioned.

The recommendation on this IPO is also based on the investments made by the anchor investors.

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रोलेक्स रिंग्स के IPO में पैसे लगाएं या नहीं?

रोलेक्स रिंग्स में क्या पॉजिटिव, क्या निगेटिव?

रोलेक्स रिंग्स IPO पर जरूर देखिए ये वीडियो...

#EditorsTake #RolexRingsIPO #RolexRings @AnilSinghvi_ @NSEIndia @BSEIndia pic.twitter.com/TjqlYA7McD

— Zee Business (@ZeeBusiness) July 28, 2021

About - Rolex Rings IPO  

- Symbol - ROLEX

- Issue Period - 28-Jul-2021 to 30-Jul-2021

- Post issue Modification Period - 02-Aug-2021 (10.00 A.M. to 11.00 A.M.)

- Cut-off time for UPI Mandate Confirmation - 02-Aug-2021 (upto 12:00 PM)

- Issue Type - 100 per cent Book Building

- Price Range - Rs 880 to Rs 900

- Face Value - Rs 10

- Tick Size - Re 1

- Bid Lot - 16 Equity Shares and in multiples thereof

- Minimum Order Quantity - 16 Equity Shares

- Maximum Subscription Amount for Retail Investor - Rs 2,00,000