Archives: Ipos

Fabtech Technologies Limited is a leading turnkey engineering solutions provider in the pharmaceutical, biotechnology, and healthcare infrastructure space. The company specialises in delivering end-to-end project solutions, including disease profiling, feasibility studies, design and engineering, equipment procurement, installation, testing, and commissioning. With a strong global presence spanning over 62 countries and a particular focus on emerging markets, Fabtech leverages its asset-light, integrated business model to execute projects efficiently while maintaining strict quality and regulatory standards. The company aims to capitalise on its strong project pipeline and global footprint by focusing on scalable, asset-light operations, which reduce capital intensity. The company’s strategy is centered on expanding its turnkey offerings, strengthening customer relationships in emerging markets, and enhancing operational efficiencies through its proprietary project management platform FabAssure. By maintaining close partnerships with related entities and trusted third-party equipment suppliers, Fabtech secures competitive pricing, ensures timely delivery, and minimises execution risks. On the financial front, the company has delivered healthy CAGR growth over FY2023–25 period, with Revenue/EBITDA/PAT CAGR of 29.8%/29.1%/46.2%. The company is well-positioned to capitalise on the structural growth of the pharmaceutical and healthcare infrastructure sector globally. Its focus on emerging economies, combined with its technology-driven project execution capabilities, provides a competitive edge in securing high-value projects. Its asset-light model enables strong cash generation and high operating leverage, while maintaining flexibility to scale operations based on project demand. The company’s order book provides healthy revenue visibility for the coming years, reducing dependency on new client acquisitions in the short term. At the upper price band of Rs 191, the company is valued at a P/E multiple of 13.3x FY25 earnings. We, thus, recommend a“SUBSCRIBE” rating for this issue.

Pace Digitek Ltd. positions itself as an integrated telecom infrastructure solutions provider with a strong focus on telecom towers and optical fibre networks. Its service portfolio spans manufacturing, installation, commissioning, and O&M, enabling turnkey solutions such as tower erection and fibre cable laying. Revenue streams are diversified across three verticals, telecommunications, energy, and ICT, supported by a wide operational footprint across key Indian states and select international markets, including Myanmar and Africa. The company, through its subsidiary Lineage, manufactures a wide range of intelligent power interfacing and monitoring systems catering to telecom operators, OEMs, tower and service providers, enterprises, and industrial clients. In FY24, passive telecom infrastructure market size in India was estimated at Rs. 1,650-1,700 billion, and is projected to increase to Rs. 2,000-2,100 billion by FY28. Additionally, the optical fibre EPC industry which was estimated at ~ Rs. 84 billion as of FY24, is expected to grow to Rs. 135-140 billion by FY28. On the financial front, the company delivered a sharp improvement in profitability, with EBITDA margins expanding from 7.9% in FY23 to 20.7% in FY25, the highest in the industry. Further, the PAT registered a remarkable CAGR of 310.9% over FY2023–25 period, significantly outperforming peers and underscoring the company’s strong operating leverage and execution capabilities. The company’s strategic initiatives, including product portfolio expansion, extension of services offerings, and growing geographical reach, are expected to support sustainable growth over the long term. The company is also well positioned to capitalise industry growth trends. On the upper price band, the company is currently valued at a P/E of 13x based on FY25 earnings which is cheaper compared to its peers. Thus, we recommend a “SUBSCRIBE” rating for this issue from a medium to long term perspective.

TruAlt Bioenergy Limited operates five distillery units in Karnataka, producing ethanol primarily from molasses and sugar syrup, along with by-products such as extra neutral alcohol (ENA), dry ice, and liquid CO₂. With a diversified portfolio that spans ethanol, CBG, and plans for sustainable aviation fuel (SAF), second-generation (2G) ethanol, and high-value biochemicals like Mevalonolactone (MVL), the company benefits from strong policy support, including the National Biofuels Policy 2018, the Ethanol Blending Program, and various state and central government incentives. The company is centred around scaling capacity, diversifying feedstock, and expanding into high-value green energy solutions. By FY26, the company aims to convert 1,300 KLPD of its existing mono-feed ethanol capacity to dual-feed, enabling production from both grain-based and sugarcane-based feedstocks. The company has also received approvals to expand its ethanol manufacturing capacity to 4,600 KLPD and plans to integrate a 200 KLPD unit for 2G ethanol production using 800,000 MT of bagasse.  On the financial front, the company has delivered healthy CAGR growth over FY2023–25 period, with Revenue/EBITDA/PAT CAGR of 58.2%/71.5%/66.0%. Overall, the company’s strong capacity base, diversified feedstock strategy, and entry into new biofuel verticals provide significant growth visibility. India’s ethanol blending targets, mandatory CBG blending initiatives, and the expected demand for SAF driven by global carbon reduction requirements create a favourable market environment. At the upper price band of Rs. 496 per share, the company is valued at a P/E multiple of 23.7x FY25 earnings. We, thus, recommend a “SUBSCRIBE” rating for this issue.

JIL is a leading provider of construction machines, specialising in both new and refurbished equipment. The company has evolved from a trading-led model into a more product-driven, customer-centric business, recently launching its own brand, HexL, to strengthen market presence and operational control. Leveraging a robust supply chain, refurbishment capabilities, and a wide distribution network, JIL serves domestic and international markets with high-quality, ready-to-use machines. Its diversified offerings and agile operations enable timely delivery, cost efficiency, and adherence to industry standards. The company’s strategic initiatives, including supply chain integration and diversification, expansion of HexL and other branded products, operational efficiency improvements, product portfolio expansion (including electric machines), brand-building, and working capital optimisation, are expected to drive revenue growth, enhance margins, and improve cash flow visibility over the medium term. Financially, the company delivered a healthy performance, growing revenue, EBITDA, and PAT at a CAGR of 27.7%, 16.5%, and 37.5%, respectively, during the FY2023-25 period. EBITDA and PAT margins remained largely stable over the period, with a notable spike in FY24 driven by lower purchase costs and reduced miscellaneous expenses. Specifically, EBITDA margin increased from 6.1% in FY23 to 9.8% in FY24 before normalising to 6.1% in FY25, while PAT margin rose from 4.3% in FY23 to 7.8% in FY24 and moderated to 5.0% in FY25. On the return front, the company reported robust ROCE and ROE of 15.2% and 20.5%, respectively, observing a decline from 33.4% and 41.3% in FY23.

The company enjoys a dominant ~19% share in Bihar’s TMT bars market, with an exclusive distributorship arrangement for both long and flat steel products from its primary supplier, ensuring a steady and reliable supply base. Its strong market position is further reinforced by a diversified product portfolio and an extensive distribution network of over 1,250 dealers, providing visibility for sustained revenue growth and margin stability. The company plans to expand its distribution footprint across additional districts in Bihar, leveraging its advantage as the sole distributor of its primary supplier in the state. Operationally, the company continues to invest in quality control and process enhancements to deliver high-grade products that consistently meet customer expectations, while maintaining a customer-centric approach with timely deliveries, responsive support, and customised solutions. On the financial front, the company has delivered healthy CAGR growth over FY2023–25 period, with Revenue/EBITDA CAGR of 1.2%/12.5%.  With experienced promoters, skilled workforce and secured supply chain, the company is well-positioned to capture incremental market share, maintain competitive pricing, and deliver healthy earnings growth. Overall, the company’s positive long-term growth trajectory is driven by strong market positioning, exclusive supplier relationships, and consistent revenue performance. At the upper price band of Rs 99, the company is valued at a P/E multiple of 19.1x FY25 earnings. We, thus, recommend a “SUBSCRIBE” rating for this issue.

Epack Pre-fab Technologies Ltd., incorporated in 1999, has built a legacy of over 25 years and currently operates through two distinct business verticals. The pre-fab business offers end to end turnkey solutions encompassing design, manufacturing, installation, and erection of pre-engineered steel buildings and pre-fabricated structures, catering to both domestic and overseas markets. Complementing this, the EPS packaging business focuses on the manufacturing of expanded polystyrene (EPS) sheets, blocks, and shape molded products, serving a diversified customer base across industries such as construction, packaging, and consumer goods in India. This dual vertical structure enables the company to leverage synergies between industrial solutions and packaging applications, thereby enhancing revenue visibility and business resilience. The company is fastest growing company in terms of revenue from operations, registering a CAGR of 41.8% during FY2022-24 period. The company plans to setup manufacturing facility at Ghiloth (Rajasthan), which would add the capacity of 8,00,000 SQM for manufacturing continuous sandwich insulated panel, which would help them to capture the market share by providing long span pre-fab building and newer end use industries like cold storages and clean rooms. As of FY25, the Indian pre-fabricated market was estimated around Rs. 47,500 crores and is projected to register a CAGR of 9-11% during FY2025-30 period to reach around Rs. 75,000 crores by FY30. On the financial front, the company registered a healthy 56.5% CAGR in EBITDA between FY22 and FY24. The company delivered robust ROE of 29.1% and ROCE of 27.2% in FY24. While these metrics moderated in FY25 to 22.7% and 22.9%, respectively, the company continued to maintain a leading position within the industry. At the upper price band, the company is valued at a P/E of 28x based on FY25 earnings, broadly in line with industry averages. We believe that the company’s superior return ratios, strong operating margins, and ongoing expansion initiatives position it ahead of peers, enabling it to capitalize on structural industry tailwinds and drive sustainable growth. Thus, we recommend a “SUBSCRIBE” rating to the issue from a medium to long-term investment perspective.

The Jain Metal Group (JMG) is engaged in the recycling and production of non-ferrous metals in India, with a primary focus on recycling non-ferrous metal scrap. Its product portfolio includes lead and lead alloy ingots, copper and copper ingots, and aluminium and aluminium alloys. The company is also involved in the trading of non-ferrous metals and other commodities. The need for metal recycling is increasing, as the industry is a significant contributor to greenhouse gas emissions. The demand for secondary copper grew at a CAGR of ~18% between FY19 and FY24, driven by the shift towards sustainable practices. Secondary aluminium demand rose at a CAGR of ~8% during the same period, supported by robust automobile production and construction activities, while secondary lead demand witnessed steady growth with a CAGR of 3.8%. JMG is well-positioned to capture this growing demand, supported by its strategically located facilities that enable cross-facility utilization of by-products and diversified operational capabilities. This integration provides the company with a competitive edge and enables it to serve a broad customer base across different geographies. Its strong global presence and long-standing customer relationships, built on consistent quality control and adherence to technical specifications, provide revenue visibility along with sustained growth and profitability. Financially, the company has delivered a strong performance between FY23 and FY25, with revenue growing at a CAGR of 52.5%, EBITDA at 72.3%, and PAT at 56.0%. This strong financial performance reflects not only the growth of its operations, but also capital allocation and efficient working capital management across its business. On the upper price band, the company is valued at a P/E of 32.4x based on FY25 earnings, which is comparatively lower than its peers. Given its strong market position, established global footprint, and healthy financials, JMG is well-placed to deliver sustainable growth. We therefore recommend a “SUBSCRIBE” rating for this issue from a medium to long-term perspective.

Anand Rathi is a 30+ year-old full-service Indian brokerage with a comprehensive suite of offerings, catering to retail investors, high-net-worth individuals, ultra-high-net-worth individuals, and institutional clients across India and internationally, via an established channel. The focus on cross-selling a diversified suite of investment solutions, particularly scaling the high-ARPC MTF business, should drive higher client stickiness and wallet share, positioning the company to benefit from the Rs. 879 billion and fast-growing MTF market (87% CAGR over FY20-Q1FY26 period). Concurrently, the rapid growth in distribution AUM (Rs. 31,572 million in FY23 to Rs. 64,598 million in FY25, CAGR 43.0%) highlights the strong traction in ancillary services, which carry higher scalability and profitability. The strategy to deepen penetration in Tier 2 and Tier 3 cities through omni-channel expansion, while targeting affluent and digitally savvy segments, expands the addressable client base meaningfully beyond Tier 1 cities. Moreover, continued investments in technology, including AI-led personalisation, risk management, and sales enablement, are likely to enhance operational efficiency and client engagement, creating operating leverage. Finally, the deliberate strengthening of the relationship manager network supports a relationship-driven broking model, crucial for sustaining high ARPC and premium positioning in a competitive industry. Financially, the company delivered a strong performance, growing revenue, EBITDA, and PAT at a CAGR of 34%, 64%, and 66%, respectively during FY2023-25 period, while expanding its EBITDA margin from 24.6% in FY23 to 36.8% in FY25, driven by cost optimisation and operational efficiency. On the return front, the company reported robust RoACE and RoAE of 21.3% and 23.1%, respectively, in FY25, reflecting healthy and sustainable profitability. On the upper price band, the company is currently valued at a P/E of 18.4x based on FY25 earnings, largely in line with listed peers. Driven by superior client monetisation, diversified revenues, robust margins, and scalable technology-led platforms, we believe that the company is well-positioned to capitalise on industry tailwinds and deliver sustainable growth. Thus, we recommend a “SUBSCRIBE” rating for this issue from a medium to long-term perspective.

Solarworld Energy Solutions Ltd. is a solar energy solutions provider, specialising in engineering, procurement and construction (EPC) services for solar power projects. The company offers comprehensive, end-to-end and cost-effective solutions for the installation of solar power projects tailored to the specific needs of its customers, which include PSUs and C&I clients. Favourable government initiatives, growing demand for clean and green energy, and rooftop installations by C&I consumers have provided strong momentum to solar adoption. Solarworld is well-positioned to take advantage of this increasing demand by leveraging its strong in-house execution capabilities and commitment to delivering end-to-end solutions. Its large team of professionals in execution, design, and O&M possesses expertise in managing complex projects and is proficient across all stages of the process. The company plans to build a strong R&D foundation to drive continuous development, adopt advanced technologies, and remain aligned with evolving industry standards. These consistent efforts have enabled Solarworld to build a strong order book, showcasing its commitment to maintaining quality standards in its construction and its strong project execution skills. Financially, the company demonstrated healthy growth, with revenue increasing at a CAGR of 53.1% from Rs. 2,325 million in FY23 to Rs. 5,448 million in FY25. EBITDA increasing from Rs. 215 million in FY23 to Rs. 1,092 million in FY25, with margins expanding from 9.2% to 20.1% during the same period. The PAT increased from Rs. 148 million in FY23 to Rs. 770 million in FY25. On the upper price band, the issue is valued at a P/E of 32.9x based on FY25 earnings, which seems fairly valued. Given the company’s strong financial performance, strong business model and favourable industry tailwinds, the issue offers attractive medium to long-term potential. We, therefore, assign the issue a “SUBSCRIBE” rating from a long-term perspective.    

Jaro Institute of Technology Management and Research, established in 2009 by Sanjay Namdeo Salunkhe, is one of India’s leading online higher education and upskilling platform companies. With a pan-India presence of over 22 offices-cum-learning centres across major cities for offline learning, along with 15 immersive tech studio set-ups on the campuses of various IIMs, Jaro caters to a total of 34 Partner Institutions as of March 31, 2024. The company offers comprehensive solutions for its learners, which include students as well as professionals up to C-Suite executives, spanning multiple domains and industry verticals. Its curated offering of customized programs at various academic levels, along with a holistic and comprehensive course portfolio across fields of study and affiliations with top-tier Partner Institutions, has enabled it to boost enrolments in degree programs and certification courses at a CAGR of 16.8% and 58.4%, respectively, from March 31, 2022 to March 31, 2024. The total addressable market for the company in India’s online higher education and upskilling sector was Rs. 13,000 crores in FY23 and is expected to grow at a CAGR of 25.7% over the next five years, reaching a market size of Rs. 42,000 crores in FY28. Building high-quality partnerships with distinguished institutions lies at the core of the company’s strategy. With a PAT margin of 18.7% in FY24 which was the highest amongst its peers, the company has strongly positioned itself as a strong player in the market. At the upper price band of Rs. 890 per share, Jaro institute is valued at a P/E multiple of 35x based on FY25 earnings. Given the company’s expanding margins, industry growth potential and scalable business model, we believe that the valuation is justified. Thus, we recommend a “SUBSCRIBE” rating for this issue with a medium to long-term investment horizon.