Archives: Ipos

Milky Mist Dairy Food Limited, incorporated in 2014 and headquartered in Perundurai, Tamil Nadu, is a leading, research-driven FMCG brand specializing in Value-Added Dairy Products (VADP). The company operates a fully integrated farm-to-consumer model spanning direct farmer milk procurement, automated mega-manufacturing, dedicated in-house cold-chain logistics, and a deep omnichannel distribution network supported by over 4,001 distributors. With a broad portfolio of 22 product categories and 640 SKUs including market leadership in organized packaged paneer (19% market share in FY26), Milky Mist reported FY26 revenue from operations of Rs. 3,138 crores and profit after tax of Rs. 127 crores. The company operates in the rapidly expanding Indian dairy and packaged food industry, where traditional value-added dairy products (TVADPs) are projected to grow from Rs. 5.6 trillion in Fiscal 2026 to Rs. 10 trillion by FY31 at a 12.1% CAGR, while emerging value-added categories (EVADPs) like cheese, yoghurt, and whey are expected to grow at a faster 15.3% CAGR. These structural tailwinds are driven by increasing urbanization, rising disposable incomes, shifting consumer preferences toward hygienic branded packaging, and growing demand for high-protein convenience foods. Financially, Milky Mist has demonstrated strong top-line momentum with a 31.2% CAGR over FY24–26 alongside significant margin accretion achieving a 32.9% gross margin and a Return on Net Worth (RoNW) of 33.6% in FY26. At the upper price band, the issue is valued at a P/E of around 71.1x based on FY26 earnings. Considering its leadership position in the nutrition segment, integrated business model, strong brand portfolio, improving financial profile, and favorable industry outlook, we believe the company is well-positioned to deliver sustainable long-term growth. Accordingly, we recommend “SUBSCRIBE” to the issue for investors with a medium-to-long-term investment horizon.

Dhoot Transmission Limited is one of the leading manufacturers of automotive electrical distribution systems in India, with a dominant presence in the 2W and 3W wiring harness segments. The company has established long-standing relationships with leading OEMs, supported by strong engineering capabilities, an extensive product portfolio and deep integration into customers’ product development cycles. It is well positioned to benefit from structural industry tailwinds, including rising electrification, premiumization, increasing electronic content per vehicle and tightening emission and safety regulations, which are expected to drive higher wiring harness content per vehicle. Further, the company’s continued investments in capacity expansion, R&D, product innovation, strategic acquisitions and technology partnerships are expected to strengthen its competitive positioning, enhance its product offerings, and expand its presence across domestic and international markets. Financially, Dhoot Transmission has delivered a healthy performance, with revenue from operations, EBITDA and PAT registering a CAGR of 27.2%, 17.8% and 15.3%, respectively, during FY24-FY26. At the upper price band of Rs. 871, the issue is valued at a P/E multiple of 35.7x based on FY26 diluted EPS of Rs. 24.4. Considering the company’s market leadership, established customer relationships, strong growth prospects, healthy financial performance, and favourable long-term industry outlook, we believe the valuation is fair. Accordingly, we assign a ‘SUBSCRIBE’ rating to the issue.

MDL Diagnostics Limited (MDL) is a differentiated molecular diagnostics company with a proprietary point-of-care (POC) platform that follows a closed-system business model, generating recurring revenue through proprietary test kits and consumables. Its Truenat platform, deployed across 90+ countries, has established a strong position in decentralised molecular diagnostics, while its WHO-endorsed TB test and in-house R&D capabilities create high technological and regulatory entry barriers. The company is well positioned to benefit from the growing adoption of molecular diagnostics through an expanding portfolio of 43 diagnostic tests across 30 diseases, driving higher utilisation of its installed base and recurring consumables revenue. Continued investments in R&D, manufacturing capacity and international expansion, along with strategic acquisitions in adjacent diagnostic segments, provide multiple long-term growth drivers. Financial performance has remained strong, with revenue, EBITDA and PAT registering CAGRs of 31.4%, 33.2% and 40.2%, respectively, during FY24-FY26. Revenue grew 41.7% YoY in FY26, while test kit volumes nearly doubled from 8.8 million in FY24 to 17.6 million, highlighting the scalability of its recurring revenue model. Although EBITDA margin moderated to 22.6% in FY26 from 25.0% in FY25 due to acquisitions and growth investments, the company’s pre-R&D EBITDA margin remained a healthy 28.6%, reflecting the underlying profitability of its core business. At the upper price band of Rs. 807, the issue is valued at 54.6x FY26 earnings, compared with the listed peer average of 64.9x. While the business remains exposed to customer concentration, with 84.6% of finished goods revenue derived from government agencies and international health institutions, its differentiated technology platform, recurring revenue model and high entry barriers support its premium positioning. Accordingly, we recommend a “SUBSCRIBE” rating for the issue with a long-term investment horizon.

Technocraft Ventures Limited (TVL) is a niche EPC player with established capabilities in water & wastewater infrastructure, supported by a strong execution track record across government-funded projects. The company is well positioned to benefit from India’s increasing investments in water, sanitation and urban infrastructure, while its specialized technical expertise and long-standing relationships with government agencies strengthen its competitive positioning. The company’s operational execution has translated into a healthy financial performance over the last two years. Revenue, EBITDA and PAT registered CAGRs of 23.5%, 43.6% and 50.8%, respectively, during FY24-FY26, while EBITDA margin expanded to 20.9% from 15.5% and PAT margin improved to 12.6% from 8.4%. The improvement has been driven by a favorable project mix, higher-margin turnkey contracts, disciplined cost management and improved execution efficiency. The company also reported an industry-leading RoNW of 26.5%, highlighting efficient capital allocation and strong earnings quality. Growth visibility remains healthy, supported by an unexecuted order book of Rs. 1,321 crores as of July 15, 2026, equivalent to nearly 3.8x FY26 revenue. The order book comprises 14 EPC projects and five long-term O&M contracts, with the latter providing recurring revenue streams that partially offset the inherently lumpy nature of EPC execution. Continued order inflows, including the recent Rs. 196 crore Delhi Jal Board project under AMRUT 2.0, reinforce management’s execution capabilities and support future revenue growth. There are few inherent risks associated with the business model. The company derives virtually all of its revenue from government authorities, exposing it to project award cycles, budgetary allocations and delays in approvals. In addition, the EPC business remains working-capital intensive, reflected in trade receivables equivalent to 34.2% of FY26 revenue, while regional concentration and dependence on public infrastructure spending continue to remain key monitorable factors. However, these risks are partly mitigated by the company’s established execution track record, specialized technical capabilities, healthy order pipeline and improving profitability profile. At the upper price band of Rs. 212, the issue is valued at 14.7x FY26 earnings, compared with the listed peer average of approximately 23x. While the company operates at a relatively smaller scale than larger listed EPC players, it delivers superior return ratios, stronger profitability and robust earnings growth, supported by a healthy execution pipeline. We believe the company offers exposure to a niche infrastructure company with improving financials and strong order visibility. Hence, we recommend a “SUBSCRIBE” rating for the issue with a long-term investment horizon.

Leap India Limited is the market leader in India’s asset pooling industry, holding an estimated 90% share of the pallet pooling market, according to the F&S Report. The company has established a dominant position through its large pooled asset base, Pan-India fulfilment network, technology-enabled operating platform and long-standing customer relationships. The Indian logistics and supply chain sector continues to offer significant structural growth opportunities, supported by increasing adoption of palletization, organized warehousing, supply chain automation, rising demand for asset-light logistics solutions and improving logistics infrastructure. These long-term industry trends are expected to drive higher adoption of asset pooling solutions and support sustainable growth for organized players such as Leap India. On the financial front, the company has demonstrated strong operating performance, with Revenue/EBITDA/PAT registering CAGRs of 41.4%/33.3%/29.5%, respectively, during FY24–FY26, supported by business expansion and a growing pooled asset base. While earnings growth was moderated by higher depreciation and finance costs due to continued asset investments, the company remains well positioned to benefit from increasing formalization of the logistics sector, rising warehouse automation, greater adoption of asset-light supply chain models and low palletization levels in India. The company’s dominant market position, recurring revenue model, technology-driven platform and high entry barriers provide healthy long-term growth visibility. At the upper price band of Rs. 159, the issue is valued at an EV/EBITA multiple of 22.2x based on FY26 earnings. The valuation appears reasonable considering the company’s leadership in the asset pooling industry, diversified customer base, scalable business model, and favourable long-term growth outlook driven by increasing adoption of organised logistics and supply chain solutions. Accordingly, we recommend a “SUBSCRIBE” rating for the issue with a long-term investment horizon.

Ardee Industries Limited (AIL) is one of India’s leading organised lead recyclers, with an integrated business model spanning global scrap sourcing, refining and value-added alloy manufacturing. The company has delivered strong operational and financial improvement over the last three years while positioning itself to benefit from the formalisation of India’s lead recycling industry. The company’s financial profile has strengthened materially over the last three years. Revenue and PAT registered a CAGR of 58.8% and 207.5%, respectively over FY24-FY26, supported by capacity expansion, improving product mix and growing export contribution. EBITDA margins expanded from 6.1% in FY24 to 12.6% in FY26, while PAT margins improved from 1.9% to 7.3%, reflecting better operating leverage and higher realisations from value-added products. Capital efficiency has also improved significantly, with ROCE increasing to 44.3% and RoNW to 57.5% in FY26, while the debt-to-equity ratio declined sharply from 4.87x in FY24 to 1.25x, demonstrating a stronger balance sheet and improving financial flexibility. At the upper price band, the issue is valued at 19.72x FY26 EPS, representing a meaningful discount to listed peers Gravita India (35.37x) and Pondy Oxides & Chemicals (31.94x). AIL has demonstrated stronger profitability, generating an EBITDA margin of 12.6%, while also delivering a substantially higher RoNW of 57.5%, reflecting efficient capital deployment and disciplined execution. We also believe the company’s integrated sourcing network, established export franchise and focus on value-added products support a business profile comparable with larger listed peers. Looking ahead, we expect better capacity utilisation at the expanded facility, increasing export contribution, operational benefits from the shift to the FOB procurement model, and diversification into plastic, tin and copper recycling to support earnings growth over the medium term. In addition, structural demand from automotive, renewable energy, telecom and data centre applications, together with the implementation of the Battery Waste Management Rules, 2022 and the Extended Producer Responsibility (EPR) framework, should continue to accelerate the shift towards organised recyclers. Considering its integrated business model, improving financial profile and attractive valuation relative to peers, we recommend a “SUBSCRIBE” rating for the issue with a long-term investment horizon.