Security and Intelligence Services (India) Ltd - IPO Note - Angel Broking

Views of Mr. Abhishek Lodhiya (Sr. Equity Research Analyst, Angel Broking):

"Incorporated in 1985, Security and Intelligence Services (India) Limited (SIS) provides private security and facility management services in India and Australia. They offer cash logistics & security services, including manned guarding and electronic security; and facility management services, such as mechanized cleaning, and pest & termite control services.

Outlook and Valuation: At the upper price band of INR 815, issue is offered at 61x FY17EPS (at pre issue marketcap), which is at ~36% discount to Quess Corp (96x FY2017EPS). Moreover, SIS has better ROE (16.4%) compared to Quess Corp (13.6%). Furthermore, at 10.3xP/BV, 26.2xEV/EBITDA, SIS's valuation looks attractive compared to Quess Corp's valuation of 13.1xP/BV, 50.4xEV/EBITDA. Hence, we recommend SUBSCRIBE rating on the issue."

Source : Equity Bulls

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