Archives: Ipos

Patel Retail Ltd. operates as a retail supermarket chain in Maharashtra’s MMR region, specifically in the Thane and Raigad districts, with a focus on “value retail”, offering food, non-food (FMCG), general merchandise and apparel catering to the needs of the entire family. Over the year, India has evolved into a thriving consumer-driven economy, making it the 4^th largest retail market globally and one of the most attractive markets for global retailer to expand their footprints in India. The share of organized retail in the total retail industry is currently estimated at 12-15% and is projected to grow from around $186 billion in 2024 to $267 billion by 2033. Patel Retail is strategically positioned to capitalize on this growth by leveraging advanced IT systems to optimize procurement, sales, and inventory, while customizing product assortments to local demand. Its robust technology and supply chain controls enhance efficiency, minimize stock-outs and reduce pilferage, thereby improving customer responsiveness and reducing losses. The company’s backward integration and strong logistics network help in reducing working capital requirements and improving operational efficiency. The company’s financial performance reflects strong growth, with EBITDA increasing at a CAGR of 16.7%, reaching Rs. 571 million in FY25 from Rs. 420 million in FY23, with consistent margins. Profit for FY25 stood at Rs. 253 million. The current issue is priced at a P/E of 24.8x on the upper band, which is lower than most of its peers. Patel Retail’s cost-efficient measures, consumer-centric approach, and growth strategy make it an attractive investment opportunity in India’s rapidly evolving retail landscape. Therefore, we recommend a “SUBSCRIBE” rating for the issue, with a medium- to long-term investment horizon.  

India’s solar photovoltaic (PV) manufacturing sector is benefiting from immense policy support, rising renewable energy targets, and robust domestic demand, emerging as one of the fastest-growing segments in the country’s transition to clean energy. Government initiatives like the Production Linked Incentive (PLI) scheme and increasing customs duties on imports have accelerated domestic capacity addition, with expected growth in PV module demand from both large-scale utility and distributed solar projects. This industry tailwind provides strong multi-year visibility for sector participants. Vikram Solar Limited is exceptionally well placed to capture this growth. As one of India’s largest and most technologically advanced solar PV module manufacturers, with an operational capacity of 4.5GW and a proven product range including high-efficiency PERC, TOPCon, and HJT modules, the company combines scale with a reputation for innovation and quality. Its industry leadership is underpinned by “Tier 1” global rankings and repeated recognition as a top performer in international module reliability tests. The company’s ambitious expansion plan targets a leap in module capacity to 20.5GW and backward integration into 12GW of solar cell manufacturing by FY27, alongside new investments in battery energy storage systems. These initiatives will enable Vikram Solar to address a greater share of the value chain, diversify its product offering, and mitigate supply chain risks, reinforcing growth visibility. Financially, the company demonstrated consistent improvement over last three years. The revenue from operations grew at a CAGR of 28.5% from Rs. 20,732 million in FY23 to Rs. 34,235 million in FY25. The EBITDA grew at a CAGR of 62.6% from Rs. 1,862 million in FY23 to Rs. 4,920 million in FY25, with a robust improvement in its EBITDA margin from 9.0% in FY23 to 14.4% in FY25. This financial performance was supported by a strong order book from Rs. 2,787 million in FY23 to Rs. 10,341 million in FY25. The current issue is priced at a P/E of 72.2x on the upper band, which is comparatively higher than its peers. However, the company’s strong market positioning, technological edge, strategic capacity expansion, and industry tailwinds position it well for sustained growth. Therefore, we recommend a “SUBSCRIBE” rating for the issue, with a medium- to long-term investment horizon. 

Regaal Resources is one of the fastest-growing maize-based specialty products manufacturers in the country and the second-largest player in eastern India with a maize milling capacity of 750 tons per day (TPD). The company’s manufacturing plant in a prime maize-growing region of Bihar ensures a steady and cost-effective supply of raw materials, giving it a competitive edge. The company has also been producing a wide range of maize-based products and serves multiple sectors like food, paper, and textiles. The company is planning to expand its presence in South India, where it has a weak presence. Initially, it plans to expand in Andhra Pradesh and Telangana and gradually in other states, viz. Tamil Nadu and Karnataka. India’s native maize starch industry is poised for steady expansion, projected to reach USD 2,478.7 million by FY29 F from USD 1991 million in 2024, driven by rising demand from the food, industrial, and feed sectors. The company is well-positioned to  capitalize on this opportunity, leveraging its strategic location in Kishanganj, a key maize belt accounting for 11.6% of the national output and its proximity to major mandis and cross-border markets. The company is among the top 10 largest maize milling companies in terms of capacity in India. During FY23-25, Regaal Resources saw a revenue CAGR of 37.0%, which was the fastest amongst its peers. The company’s ongoing capacity expansion from 750 to 1,650 TPD, combined with near full utilization of existing capacity and a gradual ramp-up of the new capacity, offers substantial potential for revenue growth over the next 2-3 years. On the upper price band, the issue is valued at a P/E of 16.9x based on FY25 earnings which seems fairly valued. We, thus, recommend a “SUBSCRIBE” rating for this issue.

India’s jewellery industry is experiencing strong growth, driven by rising disposable incomes, shifting consumer preferences toward daily wear and studded designs, and increasing digital adoption. With 50-60% of jewellery purchases in 2024 being digitally influenced and a growing demand for convenience and personalised experiences, the online jewellery segment presents a significant and fast-expanding opportunity for digital-first and omnichannel brands. Bluestone Jewellery is well positioned in this landscape as a digital-first, omni-channel brand with 275 stores across 117 cities in 26 states and union territories, consistently capturing young, urban customers drawn to its tech-enabled, customisable product offerings and rapid store expansion. Further deepen its market penetration, the company plans to expand its current omnichannel network by leveraging its technology while enhancing its product offering and becoming a lifecycle jeweller. With aggressive plans for further expansion into Tier II and III cities and continuous product innovation, the company is well-prepared for future industry shifts and growth at scale. Financially, the company demonstrated a robust growth in its topline by growing revenue at a CAGR of 51.5% from Rs. 7,707 million in FY23 (standalone) to Rs. 17,700 million in FY25 (consolidated). The company faced profitability issues, with net loss widening from Rs. 1,672 million in FY23 (standalone) to Rs. 2,218 million in FY25 (consolidated). Further, the company has increased its debt from Rs. 442 million in FY23 to Rs. 1,973 million in FY25, raising concerns about its financial sustainability. Moreover, the company is holding huge inventories of Rs. 16,525 million in FY25. Additionally, the company intends to use the amount raised through IPO towards fulfilling its working capital needs and not to repay the debt. Given the rising debt levels and persistent loss-making status, we recommend an “Avoid” rating. We will reassess our recommendation if there is a sustained improvement in financial metrics in future.

The global consumerware market, which includes a wide range of products used in the household for various purposes, such as kitchenware, tableware, cookware, cleaning tools and accessories etc, made from different materials like glass, plastic, bamboo, ceramic and others, has exhibited continuous growth over the years. It has grown at a CAGR of ~3.8% from USD 98 billion in CY 2019 to USD 114 billion in CY 2023 and is projected to reach USD 163 billion by CY 2029, growing at a CAGR of 6.3% between CY 2024 and CY 2029. The US remains the largest consumerware market with a 24.4% share in CY 2024, expected to reach USD 40.7 billion by CY 2029. India, despite holding a modest 2.7% market share, is poised for rapid growth with a projected CAGR of ~10.7% during the same period, driven by increasing demand for branded and aesthetically appealing products via organized retail and online platforms. All Time Plastics, which exports over 85% of its products and partners with globally reputed brands such as IKEA, Tesco, and Michael, is well-positioned to capitalize on this growing demand. To meet increasing demand, the company plans to expand its production capacity, utilizing a portion of the IPO proceeds to purchase equipment and machinery for its Manekpur facility. Additionally, to address the shift in consumer preference toward sustainable materials like glass and bamboo, the company is diversifying into bamboo-based product lines. Financially, the company has shown solid performance, with revenue rising from Rs. 4,434.9 million in FY23 to Rs. 5,581.7 million in FY25 and EBITDA growing at a CAGR of 17.5% from Rs. 726.5 million in FY23 to Rs. 1,002.2 million in FY25. The EBITDA margin for FY25 was 18.0% which was the second highest among primarily B2B players in the industry in India. PAT increased from Rs. 282.7 million in FY23 to Rs. 472.9 million in FY25. The company plans to use a portion of the IPO proceeds to reduce its existing debt of Rs. 1,017.6 million as of FY25. The company is currently valued at a PE ratio of 30.5x on the upper price band, based on FY25 earnings, which is comparatively lower than its peers. Given its strong fundamentals and long-term growth potential, we recommend a “SUBSCRIBE” rating for this issue from a long-term perspective.

JSW Cement Ltd. is a cement manufacturing company focused on manufacturing green cementitious products comprising blended cement (PSC), PPC, and GGBS. The company also manufactures OPC, clinker, and a range of allied cementitious products such as RMC, screened slag, construction chemicals and waterproofing compounds. JSW is the fastest-growing cement manufacturer in India in terms of growth in installed grinding capacity and sales volume. It is also the country’s largest manufacturer of GGBS. The company has long-term supply agreements with JSW Steel Limited and other partners, ensuring a steady supply of blast furnace slag for three to five years. Demand for GGBS is expected to grow at a CAGR of 14-15% from FY25 to FY30. Demand for cement from the company’s end-user sectors, like industrial and commercial buildings, rural housing, urban housing, and infrastructure, is expected to grow at a CAGR of 7.5-8.5% during the same period. JSW’s plants are strategically located across the southern, western, and eastern regions of India and are well-connected to their respective raw material sources and key consumption markets by road and/or rail, supporting efficient raw material sourcing and cost optimization. The company also benefits from strong sales and distribution network and a broad base of direct customers in India, enabling it to effectively serve both trade and non-trade segments. As part of the JSW Group, the company leverages synergies from the well-established “JSW” brand and the scale of the Group’s operations. Financially, the company’s EBITDA grew at a CAGR of 2.3% from FY23 to FY25, despite a marginal decline in revenue from Rs. 58,367.2 million in FY23 to Rs. 58,130.7 million in FY25, and its ROCE stood at 6.46%, 11.01% and 7.05% in FY23, FY24 and FY25, respectively. The company recently made a loss just in FY25, but the management expects to achieve breakeven in FY26 and return to profitability thereafter. Further, the company intends to use the amount raised from the IPO to set up a new integrated cement unit at Nagaur, Rajasthan, giving visibility for future revenue. Considering the company’s growth strategy and favourable industry dynamics, we recommend a “SUBSCRIBE” rating for this issue from a medium to long-term perspective. 

National Securities Depository Limited maintains a dominant position in India’s depository ecosystem, particularly in terms of the diversity and scale of asset classes held within demat accounts. The number of companies holding their securities in demat form has increased from 17,835 in FY17 to 79,773 in FY25, representing a 20.6% CAGR growth rate for NSDL, compared to 9,887 to 35,922 from FY17 to FY25, growing at a 17.5% CAGR for CDSL.  NSDL holds a higher share compared to CDSL among the two depositories in terms of the number of companies available for demat, the quantity, and value of securities held in demat form. NSDL maintains its focus on unlocking growth opportunities and deepening market reach by utilising its core competencies. The company plans to strengthen and modernise its IT infrastructure to improve operational efficiency, elevate service standards, and bolster resilience. Additionally, it aims to broaden its range of services, enhance its database management capabilities, and expand the market share of its payments bank division. On the financial front, the company has exhibited consistent growth. Between FY23 and FY25, revenue from operations rose from Rs. 10,219.8 million to Rs. 14,201.4 million. During the same period, profit after tax expanded from Rs. 2,348.1 million to Rs. 3,431.2 million, while EBITDA grew at a CAGR of 22.4%, increasing from Rs. 3,286.1 million to Rs. 4,929.4 million, demonstrating strong operational efficiency and profitability. The IPO is priced at a P/E of 46.6x on FY25 earnings at the upper end of the price band, which appears reasonable when compared to CDSL, currently trading at a P/E of 64.8x. We recommend a ‘SUBSCRIBE’ rating for the issue, supported by the company’s strong credit underwriting practices and prudent risk management framework.

Highway Infrastructure Ltd. is among the few toll operators in India to successfully implement Automatic Number Plate Recognition (ANPR)-based toll collection on the Delhi–Meerut Expressway. The company generates revenues in three segments. The company operates through three distinct business verticals: a) Tollway collection, b) EPC infrastructure, and c) Real estate. In its primary business vertical, Tollway collection, HIL operates and manages toll collection systems on highway projects procured through competitive bidding. The company remains committed to strengthening its core verticals, tollway collection and EPC infrastructure projects, which are expected to benefit from increasing government investments in road development and monetization initiatives. The company plans to actively bid for new projects under flagship programs like Bharatmala Pariyojana and Vision 2047, which aim to develop 50,000 km of access-controlled expressways. With experience in ANPR-based tolling systems and a footprint across 12 states, the company is well-positioned to scale operations and diversify geographically, reducing concentration risks. To broaden its revenue base, the company is exploring adjacent verticals: a) Widespread amenities (fuel stations, EV charging, eateries, etc., in partnership with NHAI), and b) HAM projects, which offer annuity-based, lower-risk revenue streams in highway development. Supported by the National Infrastructure Pipeline (over 9,000 projects) and initiatives like Make in India and PLI, these opportunities align with the company’s goal of sustainable, capital-efficient growth while managing diversification risks. The company has delivered robust financial performance, with revenue from operations growing at a CAGR of 4.4% between FY23 and FY25, reaching Rs. 4,957.1 million in FY25. More notably, PAT rose at a CAGR of 27.4% over the same period, demonstrating efficient cost management and operational leverage. EBITDA also witnessed a CAGR of 6.4%, underscoring improved profitability. At the upper end of the price band, the IPO is priced at a P/E of 20.5x FY25 earnings. While the valuation appears moderate to slightly rich relative to established peers, it is justified by the company’s strong execution track record, sectoral tailwinds, and robust growth outlook. Given its long-standing presence in toll operations, expanding footprint in EPC Infra, and potential for diversification into adjacencies, we recommend a ‘Subscribe’ rating for the issue.

India’s real estate industry is a major driver for economic growth and is expected to expand rapidly due to urbanization, infrastructure investments, digital innovation, and a tide of redevelopment projects, especially in metro cities like Mumbai. Sri Lotus Developers & Realty Ltd. has emerged as a prominent player in Mumbai’s ultra-luxury and luxury residential segments, specialising in the redevelopment of properties in the western suburbs. The company is well-positioned to capitalise on the growing trends in the Indian real estate industry. With its strong brand recall value, the company demands premium value for its properties. As of June 2025, Lotus has completed four projects, encompassing a developable area of 0.93 million sq. ft. across residential and commercial developments. The company has maintained a robust project pipeline, comprising five ongoing projects and 11 upcoming projects, which expands its presence beyond the western region into other micro-markets in the southern and central areas in Mumbai, such as Nepean Sea Road and Prabhadevi, as well as the eastern suburbs of Mumbai including Ghatkopar. Furthermore, the company’s asset-light model has resulted in a strong balance sheet and a net debt-free status. Financially, the company has demonstrated impressive growth across all fronts, with a revenue CAGR of 81.5% from FY23 to FY25, with revenue standing at Rs. 5,497 million, while the sales value grew from Rs. 1,987.8 million in FY23 to Rs. 4,629.3 million in FY25. The EBITDA grew at a CAGR of 267.8% from FY23 to FY25 to Rs. 2,890 million, with an EBITDA margin of 52.6%. The PAT grew from Rs. 168 million in FY23 to Rs. 2,279 million in FY25. The company is currently valued at an EV/EBITDA ratio of 25.4x on the upper price band, based on FY25 earnings, which is comparatively less than its peers. Given its proven track record of timely project completion, high brand recall value, premium pricing power, healthy project pipeline, ability to sell throughout the construction phase and strong financial performance, we recommend a “SUBSCRIBE” rating for this issue from a long-term perspective.

M&B Engineering Ltd., a leading player in the Pre-Engineered Buildings segment, offers comprehensive turn-key solutions that include project design, engineering, manufacturing and erection according to customer requirements across industrial and infrastructure segments. The company has delivered solutions to customers engaged in diverse sectors, including general engineering, manufacturing, food and beverages, warehousing and logistics, power, textiles, and railways. With a strong presence across diverse geographies, end-use applications, and project scales, M&B has built a strong track record that has helped it foster long-term relationships with both existing and potential customers. Pre-engineered construction has emerged as an innovative building method due to the increasing automation in the construction industry. The medium-term outlook for the Indian PEB industry is optimistic, with expected growth at a CAGR of 9.5-10.5% between FY25 and FY30, supported by investments in the industrial and infrastructure sectors, such as warehouses and logistics, as well as expressways. M&B’s offerings range from simple PEB structures to complex constructions. The strategic location of its manufacturing facilities enables the company to serve customers across India. Backed by engineering expertise and use of modern technology, M&B is able to efficiently meet customer requirements and expand its market presence. With a strong track record, extensive domain experience, established brand presence, and fully integrated capabilities across design, engineering, manufacturing, supply, and on-site project management, M&B is well-positioned to benefit from future growth opportunities in the PEB and steel roofing industry.  Financially, the company reported a revenue CAGR of 6% from FY23 to FY25, while PAT grew at an impressive CAGR of 53% during the same period. It also delivered a strong ROE and ROCE of 28.7% and 24.8% respectively, in FY25.  Based on FY25 earnings, the issue is valued at a P/E ratio of 25x based on the upper price band, which aligns well with its peers. We, thus, recommend a “SUBSCRIBE” rating for this issue.