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| Company |
Net Axis Software Services |
| Market Price |
Not listed |
| Lead manager |
Doogar & Associates
|
| Listing At |
Madras, Hyderabad, Bangalore
|
| Opening/Closing |
August 7/August 11
|
| Promoters | P Jeya Kannan, V Sathiya Jayaram, K Ravindranath, R Ravi
|
| Associate Co. |
None
|
| Managing Director |
P Jeya Kannan
|
| Post-issue Stake |
56.25%
|
| Issue |
|
| Size |
Rs 70 million
|
| Price |
Rs 20
|
| On Application |
Rs 5 |
| On Allotment |
Rs 15 |
| Objective |
Expansion
|
| Business |
|
| Product |
Software development, Services and in-house training
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| Location |
Madras |
| Project cost |
Rs 102.20 million
|
| Funded by |
Equity |
| Kensource projections |
(2001) |
| Sales |
Rs 28.50 million
|
| Profit |
Rs 2 million
|
| Earnings per share |
Re 0.25
|
| Forward P/E |
80
|
| Post-issue share capital |
Rs 131.10 million
|
| Return on equity |
2% |
| Comment | The premium is way out of line. At this price the company has a forward P/E of 80. Profit margins are pathetic. Plus, the company faces fierce competition in its area of operation.
|
| Rating *
|
D
|
* A=Subscribe & Hold ; B = Subscribe & Watch C=Subscribe & Sell ; D = Avoid
By Kensource Information Services Pvt Ltd.
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