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  1. This FMCG stock nearly tripled in 3 years of IPO: Buy this mid-cap share and gain up to 30%

This FMCG stock nearly tripled in 3 years of IPO: Buy this mid-cap share and gain up to 30%

We bring to you one such mid-cap FMCG stock that has nearly tripled in just three years of IPO from the issue price to buy and gain up to 30%. According to Axis Securities, the company currently derives 55% of its revenues from rural market.

By: | Published: April 26, 2018 11:56 AM
Photo for representational purposes only. (Image: Reuters)

The domestic stock markets have seen the blockbuster financial year 2017-2018 in terms of IPO (Initial Public Offering) with some of the biggest public offers of India such as GIC’s Rs 11,370 crore share sale, The New India Assurance Company’s Rs 9,600 crore public issue and HDFC Life Insurance Company’s Rs 8,700 crore public offer. It has been observed that some public offers are able to gather investor attention while some public issues fail to get even 100% subscription out of the total number of IPOs in a certain time period.

In the last financial year only, there were IPOs such as Avenue Supermarts, CDSL, Salasar Techno Engineering, Capacit’e Infraprojects, MAS Financial Services and Dixon Technologies were subscribed more than 100 times.

We bring to you one such mid-cap FMCG stock that has nearly tripled in just three years of IPO from the issue price to buy and gain up to 30%. According to Axis Securities, the company is focused on the huge opportunity and cognizant of this has launched affordable and innovative small packs to cater to this price sensitive market.

Shares of Manpasand Beverages Ltd have surged more than 160% from the issue price in the last three years. The stock of Manpasand Beverages Ltd has returned 164% to Rs 422 from the issue price of Rs 160 (issue price is adjusted with a 1:1 bonus issue). Earlier in 2017, Manpsasnd Beverages issued bonus shares in a ratio of 1:1 of face value Rs 10 per equity share. Over the span of last one year, Manpasand Beverages Ltd shares have risen about 15%. In the initial public offering, Manpasand Beverages successfully raised Rs 400 crore at the upper end of the price band of Rs 290 to Rs 320.

The research and brokerage firm Axis Securities Ltd has given a buy rating with a target price of Rs 528 which implies an upside of 30% from the current market price of Rs 404.9. Manpasand Beverages Ltd is focused on the huge opportunity and
cognizant of this has launched affordable and innovative small packs to cater to this price sensitive market, Axis Securities said in a report.

Manpasand Beverages Ltd commands a market capitalisation of Rs 4,647.75 crore on BSE on the basis of the share price of Rs 406.05. Manpasand Beverages Ltd shares are categorised in the group ‘B’ on BSE and are a component of S&P BSE 500 and Nifty FMCG indices.

Disclaimer: Views and recommendations given in this section are the brokerage firms’ own and do not represent those of www.financialexpress.com. Please consult your financial adviser before taking any position in the stock mentioned.

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