Netweb Technologies has started its IPO today and it will remain open through 19 July 2023. The company is looking to mobilize as much as INR 631 crore by issuing shares worth INR 206 crore and an Offer For Sale (OFS) at the rate of INR 475 – 500 per share. Netweb IPO Reviews from brokerage houses are mostly positive, please scroll down for the detailed view.
In their Netweb IPO Review, analysts at BP Wealth found merits in the company’s consistent financial performance and improving debt profile. “The company has almost seen a 3x rise in revenues and a near 6x rise in profitability, with a consistent improvement in the margin profile. On the upper end of the price band, the issue is valued at a P/E of 55.1x based on FY2023 earnings which we feel is fairly valued. We, therefore, recommend a “Subscribe” rating for the issue,” said the broker’s IPO report.
Choice Broking finds the issue expensive but has suggested investors to subscribe on account of positive outlook. “There are no comparable peers in the listed space having a business model and product offerings similar to NTIL. At the higher price band, it is demanding a P/E multiple of 59.7x (to its FY23 earning), which seems to be on the higher side. However, considering the business potential and earning growth in the medium term, we believe the demanded valuation is reasonable. Thus we assign a “SUBSCRIBE” rating for the issue,”
Analysts at Asit C Mehta Investment Intermediates have also taken a positive view of the IPO. “The Company also has a long-standing relationship with a marquee and diverse customer base. Though the issue appears lucratively priced based on FY23 performance. Management’s sound understanding of the HCS segment, experienced board and senior management and significant product development to drive growth. At the upper price band of ₹ 500/-, stock is priced at 55.12x its FY23 EPS. We recommend subscribing to the issue from a long-term perspective,” said its Netweb IPO Review.
Netweb IPO Review: More Positive Views
Significant product development and innovation, Long-standing relationships with Customers, and Comprehensive Product Segments are some of the reasons cited by Arihant Capital which has a Subscribe for long-term rating on the IPO. “With its presence in government, defense, higher education, and research sectors, Netweb Technologies is well-positioned for future growth. The company also has ambitions to expand its product portfolios and manufacturing facilities in order to establish a global presence. With a PE of 59.7x at the upper band of INR 500. we recommend that investors Subscribe to the issue for the long term,” said its analysis of Netweb IPO.
Subscribe is the call from Reliance Securities. “In view of strong in-house capabilities, healthy financials, foray into new product-lines, multiple end-user industries and marquee customers and strong growth prospects, we recommend a ‘SUBSCRIBE’ to the issue,” noted Senior Analyst Vikas Jain in his Netweb IPO Review.
Nirmal Bang compares the company with EMS players and find it better placed. “There are no directly comparable peers in the listed space who are present in the HCS industry. Thus we compare Netweb with EMS players who are mainly into manufacturing of electronic components and are also supported by strong growth due to favorable industry tailwinds. We believe, Netweb possesses higher growth and return ratios compared to EMS players and is also available at cheaper valuations. Thus we recommend to Subscribe to the IPO,” opined its IPO note.
Overall, we see that Netweb IPO Reviews are dotted with positive recommendations and this isn’t entirely surprising. It has a long growth runway and expansion in the European, Middle Eastern, and African (EMEA) markets is likely to boost topline and bottom-line significantly.