Archives: Ipos

Elevate Campuses has demonstrated strong growth and profitability momentum, supported by its large-scale student accommodation portfolio, long-term contracts with higher education institutions and expansion into the K-12 segment through its Dubai assets. The company’s 78,542-bed portfolio provides significant scale, being around 2.1x the next-largest organised student-accommodation player and 6.2x the third-largest, while 89.37% occupancy and long-term HEI contracts with minimum-occupancy guarantees and inflation-linked escalations provide strong revenue visibility. Total Income increased from Rs. 371 crores in FY24 to Rs. 603 crores in FY26, implying a 29.0% CAGR over FY24-FY26, with growth accelerating from 8.69% in FY25 to 53.10% in FY26. EBITDA increased from Rs. 219 crores in FY24 to Rs. 545 crores in FY26, translating into a 57.3% CAGR over FY24-FY26, while EBITDA margin expanded significantly to around 90% in FY26. PAT also increased to approximately Rs. 174 crores in FY26 from Rs. 50 crores in FY25, while diluted EPS improved from Rs. 4.48 to Rs. 17.81 and RoNW increased from 6.05% to 18.17%. Revenue remains geographically diversified across Northern India, which contributed around 65% of FY26 revenue, and Dubai, which contributed around 29%, while the K-12 business provides an additional annuity-like revenue stream through its triple-net lease structure. The company’s growth is supported by portfolio expansion, increasing managed beds and the addition of Dubai K-12 assets, although owned-bed occupancy moderated to 89% in FY26 from 99% in FY25. Importantly, the IPO comprises a 100% fresh issue, with proceeds accruing to the company to support its growth and strengthen the balance sheet. At the upper price band of Rs. 362, the issue is valued at 20.3x P/E and 13.8x EV/EBITDA. Given the company’s scale, strong earnings growth, high occupancy, revenue visibility and multiple growth avenues across student accommodation and K-12 education, we recommend a “SUBSCRIBE” rating for investors with a medium- to long-term horizon.

Swastika Infra Limited is an engineering, procurement, and construction company specialising in power distribution infrastructure projects, with capabilities spanning underground cabling, rural and urban electrification, construction of substations and associated feeder lines, and trading of electrical goods. The company primarily executes turnkey projects for government agencies and has expanded its presence across multiple states, supported by projects in power distribution and transmission infrastructure. The company is positioned to benefit from increasing investments in power T&D infrastructure, grid modernisation and electrification projects. On the financial front, Revenue/PAT increased to Rs.504 crores/Rs.41 crores in FY26 from Rs.210 crores/Rs.14 crores in FY24, reflecting a revenue CAGR of 55.0% and PAT CAGR of approximately 72% during FY24-FY26. FY26 revenue grew 43.6% YoY, while operating margin improved to 14.1%. The company reported healthy return ratios, with ROE and ROCE at 35.4% and 25.8%, respectively. At the upper price band of Rs.185, the issue is valued at approximately 11.8x FY26 diluted EPS of Rs.15.7. Considering the company’s strong revenue and profit growth, healthy return ratios, expanding power infrastructure opportunity and established execution capabilities, we recommend a “SUBSCRIBE” rating.

Adroit Industries is an integrated manufacturer of propeller shafts and torque-transmission components, with capabilities across forging, machining, heat treatment, assembly, balancing and testing, supported by 5,000+ SKUs and a presence across 32+ countries. With exports contributing more than 95% of FY26 product revenue, the company has established a presence across global driveline markets, while its exposure to automotive, commercial vehicles, off-highway, defence and industrial applications provides end-market diversification. Its growth strategy is centered on capacity expansion and automation through investments in forging, machining, heat treatment, material handling and testing capabilities, alongside new customer additions, deeper OEM engagement and product diversification. The Indian propeller shaft market is projected to grow from ~US$2.3bn in 2025 to ~US$3.3bn by 2030, providing a supportive demand environment, while global demand is expected to expand at a mid-single-digit rate. The company on the financial front has also improved, with revenue, EBITDA and PAT registering ~6%, ~14% and ~34% CAGR, respectively, during FY24-FY26, while EBITDA margin increased from 23.8% to 27.7% and improved return ratios.  Going forward, earnings growth will depend on higher capacity utilization, execution of the planned capex, new customer additions and sustainability of the improved margins. High export dependence, customer concentration, with the top 10 customers contributing ~61% of product revenue, and elevated working-capital intensity remain key monitorables. At the upper price band of Rs. 134/share, the issue commands an implied P/E valuation of over 17.9x FY26 earnings, reflecting the company’s improved profitability profile and growth prospects. Considering the company’s sustained margin performance, improving capacity utilization and successful execution of its planned expansion strategy, we recommend a “SUBSCRIBE” rating.

ArMee Infotech is an IT infrastructure and managed services company that has diversified into Renewable Energy EPC, PPA and BESS, providing multiple avenues for growth beyond its traditional IT business. Its established execution track record across Government and PSU projects, relationships with technology partners and ability to undertake large, multi-location projects provide a foundation for the core IT business. The company is also expanding into renewable energy, with the segment accounting for over 90% of the consolidated order book as of June 30, 2026, providing significant growth potential as the business mix shifts toward renewable infrastructure. Financial performance, however, has remained uneven, with revenue from operations growing at a CAGR of 17.0% during FY24-FY26, while EBITDA grew at only 2.8% CAGR and PAT declined at a CAGR of 4.8% over the same period. EBITDA margin declined from 7.0% in FY24 to 4.5% in FY25 before recovering to 5.4% in FY26, while PAT margin remained subdued at 3.3% in FY26. At the same time, leverage has increased meaningfully, with the debt-equity ratio rising from 0.29x in FY24 to 1.05x in FY26, while finance costs increased to Rs. 249 million from Rs. 67 million in FY25. At the CMP of Rs. 375, the stock trades at 19.6x FY26 earnings, based on diluted EPS of Rs. 19.2, and 17.0x FY26 EV/EBITDA. While the valuation is not particularly demanding on an absolute basis, we remain cautious given the lack of sustained earnings growth, low and volatile margins, and rising leverage. Further, a significant portion of the company’s future growth is dependent on Renewable Energy EPC, PPA and BESS, businesses in which the company has limited operating history and which could require higher capital, working capital and execution capabilities. While the large renewable energy order book provides growth potential, the combination of uncertain earnings conversion, limited margin visibility, rising financial leverage and execution risks associated with the transition into a new business segment limits confidence in the sustainability of future profitability. We, therefore, recommend an “AVOID” on the issue.

Varmora Granito Limited is a leading Indian manufacturer and distributor of comprehensive building interior and surfacing solutions, specializing in glazed vitrified tiles (GVT), polished vitrified tiles (PVT), ceramic tiles, bathware, and adhesives. The company operates eight in-house manufacturing units strategically clustered in Morbi, Gujarat, complemented by an extensive multi-channel distribution reach comprising 305 Exclusive Brand Outlets (EBOs), 2,758 Multi-Brand Outlets (MBOs), direct institutional builder partnerships, and an export footprint spanning over 100 countries. The Indian ceramic tiles and bathware industry is experiencing sustained formalization and structural growth, propelled by rapid urbanization, expanding residential real estate launches, shorter home-renovation cycles, and government-backed infrastructure outlays. Consumer preferences are increasingly shifting toward premium, large-format glazed vitrified surfaces and integrated bathroom concepts, providing branded players with superior pricing resilience and operating margins. The broader sector also benefits from India’s global cost competitiveness, which continues to unlock multi-year export expansion across Middle Eastern, European, and American markets. The company has maintained steady financial progress between FY24 and FY26, with revenue from operations growing from Rs. 1,435.5 crores in FY24 to Rs. 1,446.0 crores in FY25 and Rs. 1,512.5 crores in FY26. Operating profitability demonstrated healthy operating leverage on the back of an enriching product mix where high-margin GVT and technical surfaces rose to 74.0% of operational revenue as EBITDA expanded at a CAGR of 23.1% from Rs. 113.2 crores (7.9% margin) in FY24 to Rs. 151.7 crores (10.5% margin) in FY25 and Rs. 171.5 crores (11.3% margin) in FY26. Profit Before Tax advanced from Rs. 63.0 crores in FY24 to Rs. 76.6 crores in FY26, while net profit grew to Rs. 55.0 crores in FY26, supporting a strengthening balance sheet with net worth expanding to Rs. 810.2 crores. On the valuation front, based on FY26 diluted EPS of Rs. 3.1, the company commands a P/E multiple of approximately 48.5x, moderating meaningfully from 67.6x in FY24 and 85.1x in FY25 as earnings rebounded and operational scale took effect. In addition, the planned Rs. 320 crores fresh issue earmarked primarily for debt pre-payment is poised to significantly pare down financing costs, accelerate return ratios, and de-risk the balance sheet. While input fuel price volatility, regional production concentration in Morbi, and working capital cycles remain essential monitorables, the medium to long term outlook stays robust given the structural housing tailwinds and continuous product premiumization. We, thus, recommend a “SUBSCRIBE” rating for this issue.

Sonaselection India Limited is a textile fabric manufacturer based in Bhilwara, Rajasthan, with capabilities across fabric manufacturing, dyeing, processing and finishing. The company operates an installed capacity of 82.44 million metres per annum and has transitioned from job-work services towards manufacturing and direct sales of finished fabrics, enabling greater value addition and market flexibility. The Indian textile and readymade garment industry offers growth opportunities supported by rising global sourcing diversification and India’s increasing role in global apparel manufacturing. The company is also expanding across the textile value chain through its subsidiary, with plans to enter the RMG segment. On the financial front, Revenue/EBITDA/PAT increased to Rs.517 Cr/Rs.85 Cr/Rs.34 Cr in FY26 from Rs.121 Cr/Rs.28 Cr/Rs.13 Cr in FY24, translating into revenue, EBITDA and PAT CAGRs of approximately 106.7%, 72.5% and 61.2%, respectively. At the upper price band of Rs.99, the issue is valued at approximately 12.2x FY26 diluted EPS of Rs.8.1. The valuation appears reasonable relative to the company’s strong earnings growth, although margin moderation and elevated debt remain key factors to monitor. The issue proceeds are also proposed to be used partly for repayment/prepayment of borrowings and purchase of plant and machinery. Considering the strong revenue and profit growth and relatively moderate valuation, we recommend a “SUBSCRIBE” rating.

National Stock Exchange of India Limited (NSE) is a dominant market infrastructure franchise with leading market shares across key asset classes, a vertically integrated ecosystem spanning trading, clearing, indices and data, and a highly scalable technology-led business model. Its strong liquidity and network effects are supported by 132 million unique registered investors, while its Nifty franchise, GIFT City operations and expansion into new asset classes provide additional avenues for monetisation. Financial performance remains strong, with revenue from operations increasing from Rs. 14,780 crores in FY24 to Rs. 16,601 crores in FY26, implying a 6.0% CAGR over FY24-FY26, while PAT increased from Rs. 8,306 crores to Rs. 10,302 crores, translating into a 11.4% CAGR over FY24-FY26. The business continues to exhibit strong operating leverage, with an adjusted Operating EBITDA margin of 67.6% and RoNW of 33.2% in FY26. NSE also reported Rs. 3,120 crores of PAT in Q1FY27, with an Operating EBITDA margin of 77.9%, highlighting the continued strength of the franchise. Against BSE, its only listed domestic comparable, NSE is being offered at 47.3x TTM earnings, versus 48.9x for BSE, despite NSE having substantially greater scale, market share and absolute profitability. The relatively comparable valuation is supported by NSE’s superior franchise strength, higher operating leverage and broader ecosystem, although moderation in equity options activity remains a key near-term sensitivity. At the upper price band, the issue is valued at 47.3x TTM earnings. Given NSE’s dominant market position, strong profitability, scalable business model and multiple long-term monetisation opportunities, we assign a “SUBSCRIBE” rating to the issue.

Hero Motors is an automotive technology and auto-components company with a diversified presence across powertrain solutions and alloys & metallics, serving global OEMs across multiple vehicle and mobility applications. The company’s growth prospects are supported by its focus on complete powertrain solutions for e-mobility, expansion in e-transmissions and micro-mobility, and increasing utilisation of Hewland’s design, engineering, prototyping and validation capabilities. The company is also expanding its manufacturing and technology infrastructure, including the HYM motor facility, which has an annual capacity of 145,000 motors and is expected to scale to 1 million units by FY30. Financial performance has improved meaningfully, with revenue from operations, EBITDA and PAT growing at a CAGR of 5.7%, 34.3% and 55.5%, respectively, during FY24-FY26. EBITDA margin expanded from 6.3% in FY24 to 10.2% in FY26, while PAT margin improved from 1.6% to 3.5% over the same period. The improvement in profitability has been driven by stronger EBITDA growth relative to revenue, while increasing R&D investments and expansion into new products, applications and geographies provide additional avenues for growth. At the CMP of Rs. 84, the stock is valued at 73.7x FY26 P/E, based on diluted EPS of Rs. 1.1. Considering the company’s expanding e-mobility portfolio, global OEM relationships, investments in technology and manufacturing capabilities and strong improvement in profitability, the company’s growth prospects remain favourable; however, the current valuation leaves limited room for execution-related risks. Accordingly, we recommend a “SUBSCRIBE” rating to the issue.

Jindal Supreme is positioned to benefit from the medium- to long-term growth in India’s steel pipes and tubes industry, supported by infrastructure development, urbanisation, industrial expansion, water and energy infrastructure and rising steel consumption. The company is gradually diversifying beyond its core MS black and galvanized pipe business into value-added infrastructure products such as metal beam crash barriers and GI tubular poles, while higher galvanizing capacity and an expanding dealer network provide scope for deeper market penetration and an improved product mix. Operating performance has strengthened meaningfully over FY24-FY26, with revenue, EBITDA and PAT registering 2.2%, 40.4% and 32.3% CAGR, respectively, while EBITDA margin expanded from 3.27% in FY24 to 6.16% in FY26, reflecting improving operating leverage. However, PAT declined in FY26 despite higher EBITDA, primarily due to higher finance and other costs, highlighting the need for sustained earnings growth and improved capital efficiency. Going forward, higher capacity utilization, increasing contribution from value-added products, expansion of the dealer network and lower finance costs following the proposed debt repayment could support earnings growth and improve return ratios. Nevertheless, the business remains exposed to steel-price volatility, working-capital intensity and competitive pressures from larger industry players. At ~16.6x FY26 earnings, the issue valuation appears relatively demanding; however, the company’s improving operating profile, diversification into value-added products and potential balance-sheet strengthening provide a constructive medium-term outlook. Given the growth opportunities and deleveraging potential, we recommend a subscribe rating to the issue, with the outlook contingent on sustained volume growth, margin expansion and successful scaling of the newer product categories.

SS Retail Ltd. is an organized multi-brand retailer of smartphones, accessories, and consumer electronics, maintaining a dominant market footprint in West India while steadily broadening its geographical reach across neighboring states. The company operates a differentiated multi-brand retail architecture comprising its flagship SS Mobile outlets, its value-tier brand The Mobile Space aimed at regional consumer penetration, and Mobile Exchange Wala, a dedicated shop-in-shop concept facilitating the exchange, purchase, and sale of pre-owned smartphones. Its business expansion is anchored primarily on a scalable, asset-light distribution strategy driven by franchisee-operated models that minimize direct corporate real-estate overheads while leveraging local entrepreneurship to drive store-level performance.  The Indian consumer electronics and smartphone retail market continues to benefit from structural multi-year tailwinds, underpinned by rising disposable incomes, premiumization trends, shortened device replacement cycles, and expanding consumer financing availability across Tier II and Tier III+ markets. Furthermore, the organized pre-owned smartphone and mobile accessories segments are witnessing rapid growth, driven by aspirational upgrades and demand for standardized, certified devices outside metropolitan areas. From a financial perspective, the company operates a high-velocity, inventory-turnover-driven model delivering solid earnings compounding. Revenue from operations expanded from Rs. 1,206.7 crores in FY24 to Rs. 1,597.9 crores in FY25, reaching Rs. 2,351.0 crores in FY26 (a two-year CAGR of 39.58%), backed by aggressive store expansion and an 11.1% same-store sales growth trajectory. Over the same period, gross profit grew from Rs. 128.8 crores (10.7% margin) to Rs. 286.36 crore (12.1% margin), while Operating EBITDA increased from Rs. 56.50 crores (4.68% margin) to Rs. 125.1 crores (5.3% margin), driven by higher-margin accessories and pre-owned handset sales. Restated PAT advanced from Rs. 26.7 crores (2.2% margin) in FY24 to Rs. 59.2 crores (2.5% margin) in FY26. Net working capital cycle was maintained at 46 days in FY26 (inventory at 55 days, receivables at 3 days), with operating cash flows improving from negative Rs. 4.9 crores in FY24 to positive Rs. 32.5 crores in FY26. Outstanding debt stood at Rs. 275.2 crores as of July 31, 2026, with a debt-to-equity ratio of 0.7x as of March 31, 2026. On the valuation front, based on FY26 diluted EPS of Rs. 9.1, the company commands a P/E multiple of approximately 46.5x at the upper end of the price band. Given its market leadership in core regional clusters, scalable capital-efficient franchisee model, and high return profile with an ROE exceeding 30%, SS Retail offers a compelling compounding narrative in India’s organized electronics retail landscape. While high geographic concentration in Maharashtra, supplier reliance, and working capital intensity remain key monitorables, the medium-to-long term outlook stays positive, justifying its premium valuation relative to select regional retail peers. We, thus, recommend a “SUBSCRIBE” rating for this issue.