Creative Peripherals Distribution IPO Review – Dont Be Aggressive
Creative Peripherals Distribution IPO Review: Creative Peripherals & Distribution Pvt Ltd is coming up with their IPO. The details of the IPO is given below:
Issue date: March 29, 2017 – April 3, 2017
Offer price: Rs. 71 – Rs. 75 per equity share
Minimum application: 1600 shares
About the company: Creative Peripherals & Distribution is basically a distributor firm who now have a presence of over 25 locations all over India. They have tied up with many renowned brands and have a portfolio of 3000 plus products and more than 5000 people working as their dealer. The company is headed by Mr. Ketan C Patel who is the President & CEO.
Creative Peripherals have tied up with brands like AOC, Bandridge, Beats, Belkin, Datacolor, Gitzo, GOPRO, Manfrotto, Net Protector, NZXT, Olympus, Philips, PhotoFast, Printronix, Rapoo, Samsung, Sennheiser, SKYWORTH TV, SMART, TOTOLINK, Transcend, Viewsonic, Vintron. The company is now.
Objective of the IPO: Partial financing of the working capital of the company as well as general corpus needs. The companies business strategy is to grow the already existing products, add new products, expand the physical reach, researching new domains of opportunities, linking up with new dealers.
Now a quick look at the companies financials. Watch the below mentioned image:
It has been noted that the company has seen margin pressure inspite of increasing turnover all through the years. The company has posted highest profit in the FY2014 of Rs. 1.59 crores after which the net profit declined steadily. This may be due the debt of the company.
So some final thoughts on Creative Peripherals Distribution IPO review. In the bull market of today we are seeing spurts of IPOs hitting the market and most of the relatively weak issues also perform well in a good market. Hence in line of the declining financial results of the company I suggest not to be aggressive with this IPO.
Indrajit is a professional blogger and Trading System developer, Amibroker expert, Wordpress expert, SEO expert and Stock market analyst. Trading since 2000, he has started the journey of StockManiacs.net on 2008. He follows Indian and world stock markets closely.