Archives: Ipos

Manika Plastech is a design-led rigid polymer packaging manufacturer with an established presence across battery casings, pails and thinwall containers, supported by its diversified customer base and manufacturing footprint. The company’s growth prospects remain favourable, supported by the planned expansion of installed capacity from 29,200 MTPA to 38,000 MTPA, increasing wallet share from existing customers and entry into new packaging applications through injection stretch blow moulding technology. The company also operates in an industry with structural demand drivers, with India’s rigid plastic packaging market expected to grow at a CAGR of 6.8% between FY25 and FY29E, supported by growth across energy, paints and lubricants, food and beverages, personal care and other end-use industries. Financial performance has improved meaningfully, with revenue from operations, EBITDA and PAT growing at a CAGR of 9.9%, 37.3% and 39.4%, respectively, during FY24-FY26. EBITDA margin expanded from 8.6% in FY24 to 13.3% in FY26, while PAT margin improved from 3.2% to 5.1%, with margins improving further to 15.0% and 8.0%, respectively, in Q1 FY27. At the CMP of Rs. 43, the stock is valued at 18.2x FY26 P/E based on diluted EPS of Rs. 2.4. Considering the company’s improving profitability, structural growth in the rigid packaging industry, planned capacity expansion, diversification into new product categories and high repeat business from existing customers, we believe the current valuation is reasonable and recommend a “SUBSCRIBE” rating to the issue.

Veegaland Developers is a Kerala-focused residential real estate developer operating under the ‘Veegaland Homes’ brand, with presence across Kochi, Thiruvananthapuram, Kozhikode and Thrissur. Backed by the V-Guard Group, the Company has established a strong execution track record with 10 completed projects, 12 ongoing projects and a sizeable upcoming project pipeline, while achieving 100% sell-through across its completed projects. The Indian real estate sector has witnessed strong structural growth, supported by rising urbanization, increasing household incomes, nuclearization of families and improving housing affordability. According to the industry assessment, the Indian real estate market is valued at Rs. 29.5 trillion in FY24 and is projected to reach Rs. 69.8 trillion by FY30. Residential real estate remains the largest segment, supported by increasing preference for organized developers, premiumization and sustained demand for quality housing. Kerala’s residential market is also expected to benefit from urbanization, NRI-led housing demand and increasing preference for branded developers. Financially, the Company has demonstrated strong growth, with revenue from operations increasing from Rs. 110.8 crores in FY24 to Rs. 192.4 crores in FY25 and Rs. 251.0 crores in FY26, implying a 51% CAGR over FY24-FY26. EBITDA increased from Rs. 12.9 crores to Rs. 39.5 crores during the same period, while PAT grew from Rs. 7.9 crores to Rs. 26.6 crores, translating into 84% PAT CAGR. PAT margin remained healthy at 10.6% in FY26, while the Company’s debt profile improved materially, with borrowings declining from Rs. 177.0 crores in FY25 to Rs. 85.6 crores in FY26. The strong project pipeline and 63.6% sales penetration across ongoing projects provide visibility for future revenue and cash flows. At the upper price band of Rs. 140, the IPO is valued at 15.9x FY26 P/E, based on diluted EPS of Rs. 8.7. The issue appears reasonably valued against listed industry peers, particularly when viewed alongside Veegaland’s superior return profile (FY26 RoNW of 16.0%). The valuation therefore appears reasonable considering the company’s strong earnings growth, healthy return profile, established brand and robust project pipeline. We recommend a SUBSCRIBE rating for the issue, considering the company’s strong execution track record, rapid growth in revenue and profitability, improving balance sheet, healthy project absorption and favourable long-term prospects for residential real estate in Kerala.

Asset Reconstruction Company (India) Limited (ARCIL) is India’s first asset reconstruction company, engaged in acquiring stressed assets from banks and financial institutions and resolving them through restructuring, settlements, enforcement of security interests and other recovery mechanisms. ARCIL operates across Corporate Loans, Retail Loans and SME & Other Loans, with Corporate Loans remaining the largest portfolio at 69% of AUM, followed by Retail at 24% and SME & Other Loans at 7%. Revenue is primarily generated through fees and investment income, with fee income contributing 53% and investment income 47% of consolidated revenue from operations in FY26. Growth is increasingly supported by portfolio diversification and technology-led recovery. ARCIL intends to increase its exposure to Retail and SME assets, expand acquisitions from micro finance institutions and pursue opportunities in unsecured stressed loans. It is also developing Collection as a Service (CAAS) for banks, using its auction engines, collection workflows and automated resolution capabilities to provide outsourced recovery services. The company is further enhancing AI, machine learning, geo-tracking, analytics and automated collection systems to improve recovery efficiency and accelerate asset monetization. Financially Revenue from Operations, EBITDA and PAT stood at 9%, 10% and 3% CAGR respectively for the period of FY24 to FY26. EBITDA margin improved from 73% to 74% in FY26, reflecting sustained operating efficiency. Going forward, ARCIL ’s growth is expected to be supported by continued expansion of its AUM, increasing participation in the growing retail stressed-asset market, and leveraging its established resolution and collection capabilities. The rapid increase in the retail portfolio indicates a deliberate diversification beyond its traditional corporate-loan focus, while its nationwide operating network provides a platform to pursue additional stressed-asset opportunities across geographies and borrower segments. There is no directly comparable listed pure-play ARC in India; key ARC peers such as Edelweiss, Phoenix and ACRE are unlisted, while JM Financial operates within the listed but diversified JM Financial group. ARCIL also compares favorably with peers on financial strength, with a 2% PAT-to-average-AUM ratio and 12% ROA, both among the highest in the peer set, while its 0.11 debt-to-equity ratio was the lowest among the top private ARCs. This reflects strong profitability, operating efficiency and a conservative capital structure. At the upper price band of Rs. 139, ARCIL is valued at a P/E of 11.1x with a diluted EPS of Rs. 12.5. Its improving Retail and SME mix, strong operating efficiency and potential increase in stressed-asset supply provide a constructive outlook. Therefore, we assign a “SUBSCRIBE” rating to the issue.

Manipal Payment and Identity Solutions Limited is a leading player in India’s payment and identity solutions market, with an estimated 36.4% share of credit card issuance and 30.9% share of debit card issuance in FY26. Payment card volumes remained resilient, with the company billing 86.2 million chip-based payment cards in FY26, broadly in line with FY25. The company has also scaled its international operations rapidly, with banking card exports increasing from 2.25 million units in FY24 to 10.42 million units in FY26, while export revenue increased from Rs. 17.6 crores to Rs. 95.7 crores. Premiumisation is another key growth driver, with metal card production increasing to 0.52 million cards in FY26 and revenue rising from Rs. 16.0 crores in FY24 to Rs. 82.9 crores. The company’s diversified platform across payment cards, identification solutions, secure solutions and Smart Tagging & IoT solutions, coupled with a customer base of over 300 customers, provides multiple avenues for growth. However, legacy cheque printing and government identity businesses have moderated, with cheque volumes and government contract revenue declining over FY24-26. Working capital requirements have also increased, with net working capital days rising to 70.8 days in FY26, partly due to higher trade receivables following the Revenue Assurance acquisition. Profitability has strengthened despite modest revenue growth, with revenue increasing from Rs. 1,248 crores in FY24 to Rs. 1,327 crores in FY26, while EBITDA grew at a 12.8% CAGR from Rs. 335 crores to Rs. 426 crores. EBITDA margin expanded from 26.9% to 32.1%, supported by sourcing efficiencies and a favourable product mix. PAT remained broadly stable, while ROE and RoCE stood at 55.1% and 34.0% respectively, in FY26. The balance sheet has also strengthened materially, with Debt-to-Equity declining to 0.0x in FY26 from 1.1x in FY24. Looking ahead, increasing card penetration, recurring replacement cycles, premium metal cards, exports, identity solutions and the growing adoption of e-passports provide a strong structural growth opportunity. At the upper end of the price band of Rs. 339, the company is valued at 30.1x P/E, at a premium to 24.7x P/E for Seshaasai Technologies Limited, its closest listed peer in payment card manufacturing. We believe the premium is supported by Manipal Payment and Identity Solutions’ leading market position, stronger profitability, superior return ratios, diversified product portfolio and multiple growth opportunities. With a debt-free balance sheet and improving margins, the company is well placed to benefit from the structural growth in the payment and identity solutions market. Accordingly, we recommend a “SUBSCRIBE” rating from a medium to long-term perspective.

LCC Projects is a multidisciplinary EPC company with a strong presence in irrigation and water supply projects, supported by its established execution track record, in-house engineering capabilities and presence across 12 states. The company’s growth prospects remain favourable, supported by its strategy to expand its geographical footprint, diversify into renewable energy, wastewater, desalination, railways, metro rail and sewerage projects, and increasingly target larger and more complex projects. Its order book stood at Rs. 7,953 crores as of FY26, providing healthy revenue visibility, while continued investments in technology, design and engineering capabilities and cost management are expected to improve operational efficiency and returns. The company’s revenue from operations, EBITDA and PAT grew at a CAGR of 21.5%, 34.6% and 53.2%, respectively, during FY24-FY26, with EBITDA margin improving from 10.9% in FY24 to 13.4% in FY26 and PAT margin from 5.0% to 8.0%. At the CMP of Rs. 146, the stock is valued at 14.0x FY26 P/E based on diluted EPS of Rs. 10.4 and 9.6x FY26 EV/EBITDA. Considering the company’s strong order book, proven execution capabilities, healthy earnings growth, increasing geographical and segmental diversification and focus on larger-value projects, we believe the current valuation is reasonable and recommend a “SUBSCRIBE” rating to the issue.

Rentomojo (Edunetwork Private Limited) is India’s leading digital subscription platform for furniture, home appliances, and fitness equipment, operating an asset-light, full-stack rental model. The company manages the complete subscriber lifecycle across eleven integrated touchpoints – spanning risk assessment, delivery, maintenance, reverse logistics, and auto-renewing subscriptions – with an average tenure exceeding 18 months. Its established market presence commands over 40% share in the organized home furniture and appliance rental space, driven by strong repeat engagements and high organic user traffic. The Indian furniture and appliance rental industry is experiencing rapid formalization, propelled by accelerating urbanization, rising youth workforce mobility, and shifting consumer preferences toward flexible, asset-light living. Increased white-collar migration across Tier-1 and Tier-2 IT hubs, coupled with an expanding rental housing ecosystem, providing a multi-year growth runway for subscription commerce. The broader market continues to benefit from acyclical tailwinds, as consumers defer heavy capital expenditure during inflationary cycles while rapidly adopting flexible monthly subscriptions during economic expansions. The company has delivered robust financial momentum between FY24 and FY26, with revenue from operations expanding at a CAGR of 41.7% from Rs. 193 crores in FY24 to Rs. 266 crores in FY25 and Rs. 387 crores in FY26. Operating profitability demonstrated operational leverage as EBITDA grew at a 45.5% CAGR from Rs. 75 crores (38.9% margin) in FY24 to Rs. 159 crores (41.1% margin) in FY26. Profit Before Tax advanced from Rs. 22 crores in FY24 to Rs. 68 crores in FY26, while balance sheet net worth strengthened to Rs. 296 crores supported by solid operating cash flows of Rs. 173 crores in FY25. On the valuation front, based on FY26 diluted EPS of Rs. 10.1, the company commands a P/E multiple of approximately 40.0x, moderating significantly from 164.9x in FY24 and 96.7x in FY25 as operational scale took effect. Given its market leadership, locked-in contracted revenue visibility, and strong multi-cycle asset utilization, Rentomojo offers a compelling compounding narrative in India’s consumption and rental commerce sector. While ongoing execution discipline, asset quality underwriting, and working capital management remain critical monitorables, the medium-to-long term outlook stays positive, justifying its premium valuation relative to broader consumer discretionary peers. We, thus, recommend a “SUBSCRIBE” rating for this issue.

Karamtara Engineering Limited is a backward-integrated manufacturer catering to the renewable energy and power transmission sectors. The company offers a diversified product portfolio comprising solar structures, transmission line towers, fasteners and OHTL hardware fittings and accessories. It is well positioned to benefit from increasing investments in renewable energy, solar capacity and power transmission infrastructure. Its backward integration capabilities, diversified product portfolio, global presence and established manufacturing infrastructure provide a strong foundation for future growth. The company has a significant international presence, with exports to over 50 countries and 13 manufacturing facilities across India and internationally as of March 31, 2026. The renewable energy business remains a key growth driver, supported by increasing global demand for solar infrastructure and transmission solutions. On the financial front, the company reported strong growth, with Revenue/EBITDA/PAT increasing to Rs. 4,312 crores/Rs. 498 crores/Rs. 229 crores in FY26, reflecting revenue growth of 36.5% YoY and PAT growth of around 64% YoY. EBITDA margin stood at 11.6%, while ROE and ROCE were healthy at 20.8% and 23.3%, respectively. At the upper price band of Rs.254, the issue is valued at approximately 32.4x FY26 diluted EPS of Rs.7.83. Considering the company’s strong financial growth, healthy return ratios, diversified product portfolio, backward integration and favourable renewable energy and power transmission opportunities, we recommend a “SUBSCRIBE” rating.

Steamhouse India Limited operates an innovative energy utility model centered on non-conventional centralized boiler facilities and closed-loop steam distribution pipelines across major industrial hubs in Gujarat (such as Ankleshwar, Panoli, Nandesari, and Dahej), enabling chemical, pharmaceutical, and textile clients to substitute decentralized, high-emission boilers with lower-cost, sustainable process steam. Strategically, the company is leveraging its first-mover advantage to scale operational steam capacity, expanding from 315 TPH in FY24 to planned sites like Dahej Phase 2, while diversifying into high-margin utility adjacencies including pipeline-distributed industrial nitrogen, compressed instrument air, and prospective public-private partnerships in clean power generation.  Positioned to benefit from the structural growth in industrial energy and utility solutions, supported by increasingly stringent environmental regulations, carbon-neutrality targets and rising industrial energy demand across India’s manufacturing corridors, led by the accelerating shift toward cleaner, more efficient and reliable energy solutions. On the financial front, Steamhouse’s performance reflects sustained growth momentum, with Revenue, EBITDA, and PAT expanding at a CAGR of ~29.9%, ~10.5%, and ~22.0%, respectively, over FY24-FY26, driven by expansion of its centralized steam distribution infrastructure. Looking ahead, the company’s growth trajectory will be largely driven by the effective deployment of IPO proceeds, with a significant portion of the fresh equity expected to be used for deleveraging and pipeline expansion. Lower debt levels should provide greater financial flexibility, while incremental infrastructure additions are expected to enhance network utilization, operating leverage, and the margin profile over the medium term.  At the upper price band, the issue commands an implied P/E valuation of over 57x FY26 earnings, indicating that a substantial portion of the near-term growth potential is already reflected in the valuation. Nevertheless, the company’s sticky long-term B2B customer relationships, entry barriers from its centralized utility distribution network, and favourable environmental tailwinds provide a strong structural growth opportunity. We, thus, recommend a subscribe rating with a long-term investment horizon.

Kanohar Electricals is a leading transformer manufacturer with an established presence across power transmission, railways, renewable energy, and power distribution, with its positioning increasingly shifting towards high-voltage and high-value transformer products. The company’s growth prospects remain favourable, supported by the expected expansion of India’s transformer market, which is projected to grow at a 6.7% CAGR during CY25-CY30, while the extra-high-voltage and ultra-high-voltage segments are expected to grow at 9.3% and 9.0% CAGRs, respectively. Kanohar is well placed to capitalise on these trends through its capabilities in 500 MVA, 400 kV transformers, planned capacity expansion of 18,000 MVA, and investments in automation and backward integration. The company’s revenue from operations, EBITDA and PAT grew at a strong CAGR of 53.7%, 141.0% and 170.3%, respectively, during FY24-FY26, aided by the sharp increase in high-voltage transformer sales, with transformers above 400 kV contributing 52.2% of revenue in FY26 compared with 10.3% in FY24. This shift towards higher-value products, along with operating leverage and better capacity utilisation, has resulted in EBITDA margin expanding from 11.2% in FY24 to 27.6% in FY26, while PAT margin improved from 6.4% to 19.8%. At the upper price band of Rs. 632, the issue is valued at 36.3x FY26 P/E based on diluted EPS of Rs. 17.4 and 27.4x FY26 EV/EBITDA. The valuation remains largely below the peer-group multiples, particularly on an EV/EBITDA basis, providing reasonable valuation comfort. Considering the company’s strong earnings growth, improving margins, increasing exposure to high-voltage transformers and favourable industry outlook, we believe the valuation is reasonable and recommend a “SUBSCRIBE” rating to the issue.

Prasol Chemicals has established a diversified specialty chemicals platform with 150+ products across acetone-based, phosphorus-based and other specialty chemicals, serving 1,600+ customers across multiple end-use industries and 69 countries. The company’s key strategy remains focused on strengthening its position in niche chemistries, increasing downstream integration, improving capacity utilization and expanding its higher-value specialty product portfolio, with the Mahad facility providing meaningful headroom for volume-led growth. The Indian phosphorus derivatives market is expected to grow at ~10% CAGR between FY24 and FY29, providing a favourable industry backdrop for the company’s phosphorus-based portfolio, while its leadership in select acetone derivatives further strengthens its competitive positioning.  Financial performance has improved sharply, with revenue/EBITDA/PAT growing at ~18.6%/~51.7%/~114.1% CAGR respectively over FY24-FY26 period, accompanied by EBITDA margin expansion from 6.9% to 11.3%. As we advance, higher capacity utilization, an improving product mix, export growth, and increasing contribution from differentiated specialty chemicals could support sustained earnings growth and operating leverage.  While the issue valuation at ~47.2x FY26 earnings appears relatively demanding, we believe the quality of the business, niche product positioning, scalable growth opportunity and improving return profile add strategic value and provide scope for further earnings-led growth. Given the company’s strong growth trajectory and long-term specialty chemicals opportunity, we recommend a subscribe rating to the issue.