PTC Financial Services – Expensive Offer – AVOID

Looks like the Union Government is out of its senses when dis-investing the shares of PTC Financial Services at a valuation higher than HDFC (India’s Most Trusted & Ethical Brand).We do not even want to analyze the offer as the Valuation, the first parameter itself failed miserably in our analysis.

Valuations: PTC Financial services offer is being made at a P/E of 30 for FY 2011 earnings while much larger and better companies such as Rural Electrification Corporation and Power Finance corporation are available at highly attractive prices  with far better track record and extremely low Non Performing Assets.

The Government has probably lost track of the ground realities and thinks that every Investor is flush with funds from Corruption or Tax Evaded money to blindly subscribe to PSU IPOs at such high valuations. Dr. Singh must just quit and pave way for better and stronger leaders.  Avoid Subscribing to the IPO of PTC Financial Services. There are no Buyers in the Grey Market as well for PTC Financial Services.