Q&T Foods IPO

About this issue

Q&T Foods is an SME issue priced at ₹115 a share. One lot is 1,200 shares, which costs ₹1,38,000. The book is 1.09 times subscribed overall. The grey market premium is +₹1 (+0.9%), which is an informal figure and not a quoted price. Our call is Not Suggested, on 56% of our checks.

Segment

SME

Price

₹115

Lot size

1,200 shares

One lot costs

₹1,38,000

Issue size

₹25 Cr

Grey market premium

+₹1 (+0.9%)

Subscribed

1.09x

Our call

Not Suggested

What we checked

• Profitable in the latest yearPAT ₹5.2 Cr
• Profit grew year on yearPAT +90%
• Revenue grew year on yearRevenue +17%
• Margin not collapsingPAT margin 5.8% vs 9.5%
• Borrowing under half of net worthDebt/net worth 0.90
• Return on net worth above 15%RoNW 38.9%
• Post-issue P/E under 40P/E 15.7
• Price to book under 6P/B 7.7
• Majority is fresh capital100% fresh issue
• Promoters keep at least half61.9% held post-issue
• Anchor investors participatedNo anchor book
• Overall book more than 10× covered1.1× overall
• Lead manager above segment medianCorporate Makers Capital Ltd.: 10 past issues, -1% avg vs +8% segment median

2 further checks could not be judged, because the issue did not disclose enough. They count neither for nor against.