In line with the broader markets falling apart, stocks on the NSE SME segment have also collapsed. The SME platform of the NSE is intended for small and medium sized companies with high growth potential. The SME platform of the Exchange allows companies only whose post issue paid up capital shall be less than or equal to Rs.25 crores. Some of these stocks have not turned attractive. Take a look.
Silly Monk is a company that is into Digital Media Publishing. The Company publishes digital content on various platforms such as YouTube, Facebook, Amazon, Vucli etc.
What makes the stock attractive is that it is now available almost 40 per cent lower then its IPO price of Rs 120. The shares of the company are trading at Rs 78.
Now, one interesting feature of the NSE MSE segment is that one cannot buy just one share like the NSE Capital market segment. In this segment there is a minimum lot size. For example, the minimum lot size for Silly Monk is 1200 shares. So, you would need at least Rs 96,000 for investment.
The stock of Silly Monk is trading at a one year forward p/e of about 12 times. This is cheap considering the huge growth potential that we might see in the stock. If you get the shares at Rs 70 or thereabouts it maybe worth taking a risk.
This stock is another stock on the SME sector of the NSE, which has now plunged to a new 52 week low. However, the stock is very cheaply valued when compared to peers.
Sarveshwar Foods Ltd is engaged in the business of processing and marketing of branded and un-branded basmati and non-basmati rice in the domestic and international markets. They offers procurement, storage, milling, sorting, packaging, branding and distribution of Rice.
The company came out with an IPO at a price of Rs 85. The company reported a decent profit of Rs 4.19 crores for the half year ending March 31, 2018. However, the results for the quarter ending June 30, 2018, would be interesting to watch, given that we can estimate the numbers on the enhanced equity capital.
Sarveshwar Foods may report an annualized EPS of Rs 5 or thereabouts for FY 2018-19. The stock has very limited downside risk at the current market price of Rs 35. The shares are in fact available at half the IPO price.
This stock maybe worth taking a look at lower levels.