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The article delves into the ongoing IPO frenzy in the primary market, analyzing three prominent offerings: Sagility India, ACME Solar Holdings, and Swiggy. While the article acknowledges the excitement surrounding the upcoming US presidential elections, it focuses primarily on providing insights and expert opinions to guide potential investors in making informed decisions about these IPOs.
Sagility India's IPO emerges as a frontrunner among market experts, due to its pricing advantage, steady growth, and consistent margins. Its offer for sale (OFS) model, with the promoter divesting its stake, makes it an attractive option for investors seeking a stable, long-term investment. However, the article cautions that while the pricing makes it appealing to retail investors, the P/E ratio of 55-60 suggests it might not be a cheap investment.
ACME Solar Holdings presents another compelling investment opportunity, operating in the high-potential renewable energy sector. With substantial gross margins and a proven track record, the company's IPO offers exposure to the growing demand for sustainable energy solutions. However, the article emphasizes the importance of securing reliable long-term financing to ensure the success of its ambitious projects.
Swiggy's IPO, despite its brand recognition and high growth potential, raises concerns regarding profitability, specifically regarding its dine-out service. The article highlights the lack of recurring revenue from subscribers and the challenge of generating sufficient advertising revenue to reach profitability. Although Swiggy's competitor Zomato has achieved profitability, Swiggy's future remains uncertain until it achieves similar financial stability.
Expert opinions vary, with Arun Kejriwal favoring Sagility India due to its pricing and long-term potential in the power sector. Mohit Gulati, on the other hand, highlights Swiggy's potential but advocates for a more cautious approach due to its lack of profitability. He emphasizes the importance of risk tolerance, sector preferences, and growth expectations in making an investment decision. Gulati suggests a preference order of Sagility, ACME, and then Swiggy, based on his analysis of their respective valuations and market prospects.
Source: IPO Review: Swiggy IPO vs Sagility IPO vs ACME Solar IPO. Which one should you subscribe?