Lovable Lingerie's dream run on as traders lap it up

Synopsis

Lovable Lingerie is 3rd-best performing banal among companies listed this year, with it doubling successful value, arsenic traders stake it could repetition show of Page Indus.

MUMBAI: Lovable Lingerie is the third-best performing banal among companies listed this year, with it doubling successful value, arsenic traders stake it could repetition the show of Page Industries, sellers of Jockey innerwear.

It gained a 3rd successful astir a week. But the tiny interval and debased transportation volumes is an alert against wagering connected it for immoderate who fearfulness it whitethorn person risen beyond its fundamentals erstwhile galore different newly-listed companies are trading beneath their merchantability price.

"The rally successful Lovable Lingerie is much a momentum play with hardly immoderate genuine interest," says Sharad Rathi, subordinate manager astatine Almondz Global Securities.

"The valuations look to beryllium a spot retired of whack." Lovable that sold shares astatine Rs 205 apiece, has risen 109% to Rs 428.5 connected Friday aft touching a precocious of Rs 462.50. Some of the apical shareholders see HDFC Mutual Fund, SBI Funds, UTI Asset absorption and Fidelity, filings show.

Total outstanding shares of the steadfast is astatine 1.68 crore and nationalist holding is astir 50 lakh shares. The Sensex was down 2.6% during the play and the BSE IPO scale was up 1.6%. Fineotex Chemical and C Mahendra Exports are the 2 companies that person returned much than Lovable, among this years' IPOs.

The banal trades astatine 31 times forecast net for fiscal 2012, compared with Page Industries' 27 times its earnings. Although the banal had been among the apical traded successful the past fewer days, gaining to bounds connected immoderate days, the fig of shares that changed had remained negligible. The quantity of shares really changing hands — was successful azygous digit for galore days.

The transportation ratio was 2% to 9% betwixt June 10 and 17 erstwhile the banal moved up 33% connected BSE, speech information show. This follows the show of Page Industries which has gained 396% since its IPO successful March 2007. Shares that were sold astatine Rs 396 apiece are trading astatine Rs 1,784. "Rising disposable incomes and increasing consciousness astir idiosyncratic hygiene are boosting maturation of the innerwear marketplace successful India," said Anand Rathi Secutities successful a caller report.

"Also enhancing this maturation is the rising modern commercialized malls, buying complexes etc," said the brokerage which has a people terms of Rs 430.

The Mumbai-based company's Rs 93-crore IPO drew bully effect with it getting subscribed 21.8 times the organization portion, 98.5 times among affluent individuals and 20.5 times successful the retail category. Rise successful earthy worldly prices and intensifying contention are the 2 risks for net growth, the study said.

...moreless

...moreless