1. Tatva Chintan is a B2B speciality chem company recently listed with lot of media publicity
2. Very highly oversubscribed
3. Ipo price at 41 pe of recent annual earnings.
4. Listing price more than doubled on first day allottees profit.
5. Valuation now north of 85 pe but does this company or any B2B company deserve such rich valuation. I think not as a pricing power does not rest with company
6. Company already has significant market share and is unlikely to grow revenues at such a fast rate for coming years.
7. No investor in their right mind should buy this stock at this rate as even reasonable returns would take years to fructify.