Archives: Ipos

Cube Highways Trust is one of India’s largest diversified road Infrastructure Investment Trusts (InvITs), owning a portfolio of 27 operational highway assets across 18 states and union territories. The diversified portfolio, supported by long residual concession periods and a balanced mix of traffic-linked and annuity-based assets, provides stable and predictable cash flows. The trust further benefits from an experienced investment manager, strong operational capabilities and institutional sponsorship from globally reputed infrastructure investors, which collectively strengthen its execution capabilities and governance standards. The Indian road infrastructure sector continues to offer favourable long-term growth opportunities, driven by sustained government investments under initiatives such as the Bharatmala Pariyojana and PM Gati Shakti, increasing highway traffic, rising freight movement, and continued monetization of operational infrastructure assets through the InvIT route. These structural tailwinds are expected to support healthy traffic growth, stable toll collections and attractive acquisition opportunities for established InvIT platforms. On the financial front, the trust has demonstrated resilient operating performance supported by diversified revenue streams, healthy operating cash flows and prudent capital allocation. The mature nature of its operational asset portfolio, combined with long-term concession agreements and disciplined leverage management, is expected to support sustainable Net Distributable Cash Flows and consistent distributions to unitholders. Overall, we believe Cube Highways Trust is well positioned to benefit from India’s expanding road infrastructure sector, supported by its high-quality, diversified portfolio, experienced management platform, strong sponsor backing, and a visible acquisition pipeline.

Caliber Mining and Logistics Limited is an integrated mining services and logistics company engaged in overburden removal, coal and iron ore extraction, coal transportation, rake loading, and allied logistics services. Backed by over three decades of operating experience, a large fleet of mining equipment, integrated mining and logistics capabilities, and long-standing relationships with subsidiaries of Coal India Limited and other mining companies, the company is well positioned to benefit from the structural growth in India’s mining sector, driven by rising domestic coal production, commercial coal mining reforms, increasing mechanisation, and higher investments in mining infrastructure. Its diversified service portfolio and healthy order book provide strong revenue visibility and strengthen its competitive positioning. India’s mining services and mining logistics industry is witnessing robust structural growth, supported by the government’s focus on enhancing domestic coal production, expanding commercial mining, improving evacuation infrastructure, and increasing investments in transportation and logistics networks. These favourable industry trends are expected to create significant long-term growth opportunities for organised mining service providers with integrated execution capabilities. Financially, revenue from operations increased from Rs. 953 crores in FY24 to Rs. 1,678 crores in FY26, reflecting strong business growth over the period. EBITDA increased from Rs. 243 crores in FY24 to Rs. 431 crores in FY26, while the EBITDA margin remained healthy at 25.7% in FY26. PAT increased from Rs. 96 crores in FY24 to Rs. 158 crores in FY26, supported by improving operating efficiency, healthy execution across projects, and strong profitability. The company also reported healthy return ratios, reflecting efficient capital deployment and operational strength. At the upper price band of Rs. 424, the issue is valued at a P/E of 14.4x based on FY26 diluted EPS of Rs. 29.47. While the valuation appears reasonable, the company’s integrated mining and logistics business model, healthy order book, improving profitability, and favourable industry outlook provide healthy long-term growth visibility. Accordingly, we recommend a “SUBSCRIBE” rating for the issue with a long-term investment horizon.

Alpine Texworld Limited is a vertically integrated textile manufacturer engaged in the production of cotton yarn and grey fabric, with manufacturing capabilities spanning spinning, sizing, and weaving. The company primarily caters to the domestic textile value chain and has established a strong presence in Ahmedabad, Gujarat, one of India’s largest textiles manufacturing clusters, providing access to abundant cotton, an established supplier ecosystem, and a favourable operating environment. Over the years, the company has strengthened its manufacturing platform through backward integration into yarn production, expansion of weaving capacity through the acquisition of Alpine Cottweave LLP and investments in captive solar power, positioning it to improve operational efficiencies and support future capacity expansion. Financially, the company has demonstrated a healthy growth trajectory, with revenue from operations increasing at a 37% CAGR during FY24-FY26 to Rs. 343 crores. Operating leverage and an improving product mix supported EBITDA growth at a 54% CAGR, while PAT registered a robust 111% CAGR over the same period. Consequently, EBITDA margin improved from 10.8% in FY24 to 13.8% in FY26, while PAT margin expanded from 2.7% to 6.3%. The company has also delivered a meaningful improvement in return ratios, with ROE increasing from 11.5% in FY24 to 28.8% in FY26, reflecting better profitability and efficient capital utilization. At the upper price band of Rs. 105, the issue is valued at a P/E multiple of 12.8x based on FY26 diluted EPS of Rs. 8.2. Considering the company’s integrated manufacturing platform, strategic presence in Gujarat’s textile ecosystem, ongoing capacity expansion, improving profitability and healthy return ratios, we believe the valuation is reasonable. Accordingly, we assign a ‘SUBSCRIBE’ rating to the issue.

Laser Power & Infra Limited operates in the power transmission and distribution industry through an integrated business model encompassing manufacturing of power cables, conductors, and specialized electrical products, as well as EPC execution for power infrastructure projects. Backed by over three decades of operating experience, integrated manufacturing facilities, backward integration, and long-standing relationships with Indian Railways, DISCOMs, and government utilities, the company is well positioned to benefit from structural growth in India’s power infrastructure sector, driven by transmission expansion, distribution strengthening, railway electrification, and renewable energy integration. Its strategic partnership with TS Conductor Corp. further enhances its product portfolio and strengthens its positioning in advanced high-performance conductors. India’s power cables, conductors, and transmission & distribution equipment industry is experiencing robust structural growth, driven by sustained government investments in power infrastructure, grid modernization, renewable energy integration, railway electrification, and the expansion of transmission and distribution networks across urban and rural regions. Financially, revenue from operations increased from Rs. 1,748 crores in FY24 to Rs. 2,326 crores in FY26, registering a 15.4% CAGR over the period. EBITDA nearly doubled to Rs. 301 crores in FY26, with the EBITDA margin improving to 13.0% in FY26 from 8.9% in FY24. PAT increased from Rs. 40 crores in FY24 to Rs. 152 crores in FY26, reflecting a 93.7% CAGR over FY24-26 period, supported by improving operating efficiency and higher return ratios. Looking ahead, increasing investments in transmission and distribution infrastructure, smart grids and power network modernization are expected to drive long-term growth. At the upper price band of Rs. 214, the issue is valued at a P/E of 16.2x based on FY26 diluted EPS of Rs. 13.2. While the valuation appears demanding, the company’s integrated business model, improving profitability, and favourable industry outlook provide healthy long-term growth visibility. Accordingly, we recommend a “SUBSCRIBE” rating for the issue with a long-term investment horizon.

Kusumgar Limited operates in the niche engineered fabrics and technical textiles industry, with growing exposure to high-growth aerospace and defence, industrial and outdoor textile applications. As one of India’s established players in this space, backed by an integrated manufacturing platform with facilities across Gujarat and Uttar Pradesh, high entry barriers, long customer qualification cycles and established relationships with marquee customers, the company is well positioned to capitalize on structural tailwinds including defence indigenisation, rising global defence spending, supply chain diversification and increasing demand for high-performance industrial textiles. Its technical capabilities and long-standing customer relationships enhance earnings visibility and provide strong competitive advantages, supporting sustained profitability even through periods of order-driven revenue volatility. Financially, the company’s revenue from operations grew from Rs. 468 crores in FY24 to Rs. 779 crores in FY25, before moderating to Rs. 692 crores in FY26, reflecting the project-based nature of certain defence and industrial orders; even so, revenue compounded at a 21.61% CAGR over FY24-FY26. EBITDA grew at a 19.36% CAGR to Rs. 188 crores in FY26, with the EBITDA margin expanding to 27.15% in FY26 from 24.18% in FY25, reflecting an improving product mix and operational efficiencies that helped offset the topline moderation. PAT stood at Rs. 98 crores in FY26, recording a 7.9% CAGR over the same period, underpinned by a robust PAT margin of approximately 14.2% and healthy earnings per share of Rs. 9.68, highlighting the company’s ability to sustain profitability despite higher employee costs, depreciation and finance expenses arising from business expansion. Looking ahead, higher capacity utilization, continued penetration into aerospace and defence applications, growing export demand and sustained operating leverage are expected to drive earnings growth. At the upper price band of Rs. 419, Kusumgar Ltd. is valued at a P/E multiple of 45.0x based on FY26 earnings. Given the company’s historical growth track record, expanding margins, scalable business model and industry growth potential, we believe the valuation is justified. Thus, we recommend a “SUBSCRIBE” rating for this issue with a medium to long-term investment horizon.

Knack Packaging Ltd. operates in the structurally growing flexible packaging industry, benefiting from rising demand across end-user segments such as food, pet food, agriculture, chemicals, fertilizers and building materials, alongside the increasing adoption of value-added, branded and sustainable packaging solutions. As one of India’s leading integrated manufacturers of Printed and Laminated Woven Polypropylene (PLWPP) bags, with an estimated 10.1% domestic market share, a fully backward-integrated manufacturing platform, exports to over 71 countries and long-standing relationships with marquee global and domestic customers, the company is well positioned to capitalize on favorable industry tailwinds. Its differentiated product portfolio, technological leadership in value-added packaging formats and digitally integrated manufacturing ecosystem provide strong competitive advantages, supporting both margin resilience and scalable growth. Financially, the company has delivered a robust growth trajectory, with revenue increasing to Rs. 823 crores in FY26, registering a 12% CAGR over FY24-FY26 period. EBITDA grew at a stronger 25% CAGR to Rs. 152 crores, with the EBITDA margin expanded to 18% in FY26, reflecting operating leverage, an improving product mix and enhanced operational efficiencies. PAT stood at Rs. 93 crores in FY26, recording an impressive 42% CAGR over the same period, underpinned by healthy profitability and disciplined execution. Looking ahead, higher capacity utilization, continued expansion in value-added packaging solutions, increasing export penetration and sustained operating leverage are expected to drive earnings growth. Backed by its integrated manufacturing capabilities, technological differentiation and strong financial performance, the company is well positioned to deliver sustainable revenue growth, margin expansion and long-term value creation. At the upper price band of Rs. 138, Knack Packaging Ltd. is valued at a P/E multiple of 18.3x based on FY26 earnings. Given the company’s historical growth track record, expanding margins, scalable business model and industry growth potential, we believe the valuation is justified. Thus, we recommend a “SUBSCRIBE” rating for this issue with a medium to long-term investment horizon.

Aastha Spintex is engaged in the manufacturing and trading of carded, combed and compact combed cotton yarns along with cotton bales. The company follows an integrated business model wherein cotton bales are utilized for captive consumption as well as supplied to other spinning units, while cotton yarn caters to diversified applications across knitting and weaving segments including denim, terry towels, shirting, sheeting, sweaters, socks, home textiles and industrial fabrics. The company has established a strong customer base in Gujarat, supported by long-standing customer relationships and regional market presence, which has remained a key growth driver for the business. The company continues to focus on improving operational efficiencies through investments in modern spinning infrastructure and advanced quality control systems, including in-house testing laboratories. Further, the proposed acquisition of Falcon Yarns Private Limited through a SPA is expected to enhance the company’s manufacturing scale, diversify its customer base and strengthen its market positioning within the domestic cotton yarn industry. Industry tailwinds also remain favorable, with the Indian textile industry estimated at USD 195.4 bn in CY25 and expected to reach USD 623.3 bn by CY35P, implying a CAGR of 12.3%. On the financial front, the company has demonstrated healthy growth momentum, with Revenue, EBITDA and PAT registering CAGR of 21%, 88% and 365%, respectively, during FY23-FY25, supported by improving operational performance and margin expansion. While the company derives a significant portion of its revenue from Gujarat and undertakes sales outside the state and export operations through a reseller network, which may result in geographical concentration and dependence on intermediary channels, we believe the company’s integrated business model, improving operational scale, acquisition-led expansion strategy and favourable industry dynamics position it well to capitalize on the growing demand opportunities within the domestic textile sector going forward. At the upper price band of Rs. 136, the issue is valued at a P/E of 17.6x based on annualized FY26 earnings. We thus, recommend a “SUBSCRIBE” rating from a medium to long-term perspective.

CSM Technologies Limited (CSM) is a digital transformation and e-governance solutions provider with a strong presence across governance, mining, agriculture, education and healthcare. The company reported revenue of Rs. 166 crores, EBITDA of Rs. 30 crores and PAT of Rs. 15 crores in 9MFY26, with both EBITDA and PAT already exceeding their respective FY25 levels. Profitability improved sharply during the period, with EBITDA margin expanding to 18.2% from 14.7% in FY25 and PAT margin rising to 8.8% from 7.0%. The company also enjoys healthy revenue visibility, with an order book of Rs. 376 crores as of December 2025, equivalent to nearly 2.3x its 9MFY26 revenue, while customer concentration has reduced meaningfully over the past three years. The key concern, however, remains earnings quality. Operating cash flow turned negative at Rs. 24 crores in 9MFY26, receivables increased to Rs. 85 crores from Rs. 22 crores in FY23, working capital days stretched to 85 from 64, and debt-to-equity rose to 0.86x from 0.18x over the same period. While margins have improved materially, the recovery is concentrated in a single nine-month period and has yet to demonstrate sustainability across business cycles. Further, despite a growing non-government order pipeline, revenue remains dependent on government projects, with Odisha contributing 62.6% of 9MFY26 revenue. Given the stretched working capital profile and rising leverage, we would prefer to avoid the issue and reassess the business once cash conversion and profitability trends stabilize over the next few quarters. At the upper end of the price band of Rs. 113 per share, the issue is valued at a P/E of 29.7x based on annualized FY26 earnings. While the valuation appears reasonable, stretched working capital, negative operating cash flows and rising leverage outweigh the positives. Hence, we recommend an “AVOID” rating for the issue.