Archives: Ipos

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.

Glass Wall Systems (India) Limited is an established provider of façade solutions and fenestration products, catering to domestic and international markets, including the US and Australia. The company operates in the growing façade engineering and construction solutions industry, supported by increasing commercial real estate development, urbanisation, premium infrastructure projects and rising demand for energy-efficient and sustainable building solutions. Its established market presence, diversified business model, marquee client base, engineering capabilities and manufacturing infrastructure provide a strong foundation for future growth. On the financial front, the company has demonstrated strong operating performance, with Revenue/EBITDA/PAT increasing to approximately Rs.457 crores/Rs.120 crores/Rs.84 crores  in FY26. EBITDA margin stood at around 26.2% in FY26, while PAT margin improved to approximately 18.3%, reflecting strong profitability and operating leverage. Revenue increased significantly from Rs.278 crores in FY25, while PAT increased from Rs.58 crores, indicating healthy earnings growth. At the upper price band of Rs.182, the issue is valued at ~18.4x FY26 diluted EPS of Rs.9.90. The company, however, has reported superior profitability, with ROE of 32.0% in FY26 compared with the peer’s ROE of 8.7%, which supports the valuation. Considering the company’s strong financial performance and growth prospects, we recommend a “SUBSCRIBE” rating with long-term investment horizon.

Rays of Belief Limited, operating under the Mom’s Belief brand, is a specialised intervention platform for children with Neurodevelopmental Disorders (NDDs), with a growing network of centres, digital services and home-based intervention offerings. The company has established itself as India’s largest clinical network in the NDD intervention segment, providing investors exposure to a niche, underpenetrated market with significant scope for organised players. Revenue from operations increased from Rs. 306.1 million in FY24 to Rs. 816.6 million in FY26, translating into a 63.3% CAGR over FY24-26. Importantly, the underlying India business continues to grow organically, with standalone revenue increasing 30.6% YoY in FY26, while operating leverage is becoming visible as the centre network matures, with EBITDA margin expanding from 4.9% in FY24 to 14.6% in FY26 and RoCE improving to 29.7%. A key driver of future growth is the continued expansion and maturation of its centre network. New centres typically take 8-12 months to achieve operating breakeven, following which revenue and profitability improve meaningfully. The company plans to add 190 Company Learning Centres/Early Intervention Centres and 121 School Collaboration Centres by FY29, providing a substantial runway for growth in an asset-light and capital-efficient manner. The US opportunity remains another key growth lever, with the acquisition of three Virginia clinics contributing Rs. 340.9 million, or 42% of consolidated FY26 revenue. These clinics provide an established patient base through which Mom’s Belief can potentially introduce its specialised behavioural therapy and NDD intervention services, creating a significant opportunity to scale its model in a higher-value healthcare market. However, investors should monitor the company’s cash conversion closely. CFO was negative,  at Rs. 19.4 million in FY26 due to a sharp increase in receivables, with Rs. 112.9 million, or over 62% of total trade receivables, due from promoter-related entities. This remains a key concern from an earnings quality, liquidity and corporate governance perspective. At the upper end of the price band, the company is valued at a P/E of 74.5x FY26 consolidated EPS of Rs. 3.21. While the valuation is demanding and the related-party receivables and negative CFO remain important risks, we believe the company’s leadership position in a niche and underpenetrated market, scalable asset-light expansion model, significant planned centre rollout and the sizeable US growth opportunity provide a compelling long-term growth opportunity. Accordingly, we recommend a “SUBSCRIBE” rating for investors with a long-term investment horizon.

Purple Style Labs Limited (PSL) operates Pernia’s Pop-Up Shop, a multi-brand luxury fashion platform headquartered in Mumbai, with an omni-channel presence across India, the UK and the US. International markets contributed 20% of Total Pop-Up Shop (PPUS) Gross Merchandise Value (GMV) in FY26, comprising the US at 11%, the UK at 6% and the rest of the world at 4%. Its portfolio spans womenswear, menswear, jewellery, accessories and kidswear, with womenswear remaining the dominant category. The company’s Total PPUS GMV increased 23% in FY26, indicating growth in merchandise output, however, this has not translated proportionately into revenue growth. Revenue from operations increased from Rs. 504 to Rs. 558 crores from FY24-FY26, implying a modest CAGR of ~5%. While operating expenses also increased from Rs. 478 to Rs. 537 crores from FY24 to FY26, representing an increase of 12% this was primarily driven by the expansion of Large Format Experience Centers, which increased depreciation, lease-related finance costs, store operating expenses and inventory requirements. Employee costs also rose as the company expanded its workforce to support the larger retail network. These higher costs were partly offset by lower sales, marketing and courier expenses. EBITDA decreased from Rs. 32 to Rs. 30 crores across FY24-26, implying a negative CAGR of approximately 2%, while EBITDA margin declined from 6% to 5% in FY26. PSL remains focused on expanding larger-format stores, increasing customer reach and strengthening the brand proposition. Going forward, the company could benefit from the expansion of India’s luxury fashion market, increasing affluent consumption and growing acceptance of Indian designer wear internationally. However, translating GMV growth into sustainable revenue and profitability, while controlling the cost base and improving operating cash flows. The company reported negative operating cash flows in each of FY24-FY26. Purple Style Labs does not have a directly comparable listed peer in India, although within India’s premium luxury fashion segment, established names such as Sabyasachi, Manish Malhotra, Anita Dongre and many more have stronger heritage positioning and global recognition. PPUS is moving towards a more premium assortment by reducing lower-priced products with lower margins, but it continues to operate in a competitive and fragmented market. At the upper price band of Rs. 575, the issue is valued at 8.3x FY26 revenue on a Price-to-Sales multiple. While the company operates in the premium luxury fashion segment, elevated operating costs, negative earnings and declining EBITDA margins limit near-term profitability and valuation visibility. Given the demanding P/S multiple and competitive intensity in the premium luxury fashion market, we assign an “AVOID” rating to the issue.

Priority Jewels Limited operates in the B2B fine jewellery segment, specializing in lightweight, affordable diamond-studded gold and platinum jewellery alongside customized lab-grown diamond offerings. The company benefits from over 16 years of operational history, strong design and prototyping capabilities, and established relationships with prominent jewellery retail chains such as CaratLane, Kalyan Jewellers, Reliance Retail, Malabar Gold & Diamonds, TBZ, and Senco Gold. India’s gems and jewellery industry continues to experience structural growth driven by rising disposable incomes, rapid urbanization, and increasing consumer preference for contemporary daily-wear and branded jewellery. Priority Jewels’ integrated manufacturing facilities in Maharashtra, extensive distribution network covering over 200 customers across India and 13 export markets, and deep promoter expertise position it well to capture these secular tailwinds. Financially, the company has delivered solid performance, with revenue from operations growing from Rs. 410.5 crores in FY24 to Rs. 539.0 crores in FY26 at a CAGR of 14.6%, while Profit After Tax (PAT) expanded from Rs. 7.1 crores to Rs. 17.7 crores at a CAGR of 57.1% over the same period, demonstrating healthy operating leverage and expanding net margins (rising from 1.7% in FY24 to 3.3% in FY26). The growth momentum has sustained into the three months ended June 30, 2026, delivering a revenue of Rs. 146.7 crores and a PAT of Rs. 6.5 crores. Going forward, planned debt repayment utilizing 75% of the net fresh issue proceeds will materially reduce finance costs (which stood at Rs. 8.38 crores in FY26), while growing export demand, higher capacity utilization, and expansion into high-margin lab-grown diamond jewellery are expected to further bolster profitability. At the upper price band of Rs. 200, Priority Jewels Ltd. is valued at a P/E multiple of 14.3x 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.

ESDS Software Solution Limited is an established cloud infrastructure and managed services provider, offering data centre, cloud computing and related digital infrastructure solutions. The company operates in a growing industry supported by increasing cloud adoption, digital transformation, AI/ML applications and rising demand for data centre infrastructure in India. Its expanding data centre footprint, improving profitability and presence across cloud and managed services provide a strong foundation for long-term growth. The Indian cloud and data centre industry offers structural growth opportunities, supported by increasing enterprise digitisation, adoption of cloud-based solutions and demand for AI-ready computing infrastructure, which could benefit organised domestic players such as ESDS. On the financial front, the company has demonstrated strong operating performance, with Revenue/EBITDA/PAT increasing to Rs.472 Cr/Rs.234 Cr/Rs.121 Cr in FY26. EBITDA margin improved to 49.6% in FY26, while PAT margin stood at 25.6%. At the upper price band of Rs.429, the issue is valued at approximately 36.4x FY26 diluted EPS of Rs.11.8. While the company’s strong earnings growth, high EBITDA margins and favourable industry outlook provide support to the premium valuation, the multiple remains relatively demanding. Considering the company’s strong growth prospects, we recommend a “SUBSCRIBE” rating with a long-term investment horizon.

Lumino Industries is an integrated power transmission and distribution player with presence across manufacturing and EPC, supported by in-house capabilities in conductors, power cables and electrical wires. The company’s growth prospects are supported by significant investments expected in India’s power sector, with total investments estimated to increase from Rs. 19.2 trillion during FY22-FY26 to Rs. 37-42 trillion during FY27-FY31, while transmission investments alone are expected to reach Rs. 4-5 trillion. The increasing focus on renewable energy integration, higher-voltage transmission networks and reconductoring is expected to support demand for conductors, cables and HTLS solutions. Lumino’s integrated manufacturing-EPC model provides cost and execution advantages, while its diversified manufacturing capabilities and planned capacity expansion provide scope to address multiple end markets. The company is also increasing its focus on higher-value EHV substation projects, which accounted for 44.6% of its EPC order book as of March 2026. Financially, revenue from operations, EBITDA and PAT grew at a CAGR of 20.4%, 28.3% and 35.9%, respectively, between FY24 and FY26, with EBITDA margin improving from 10.3% to 11.7% and PAT margin from 6.2% to 7.8%. At the upper price band of Rs. 82, the issue is valued at 12.5x FY26 P/E based on diluted EPS of Rs. 6.6. Considering the company’s integrated business model, strong order-book visibility, diversified manufacturing capabilities, improving profitability and favourable long-term power sector outlook, we believe the valuation is fair and assign a “SUBSCRIBE” rating to the issue.

Annu Projects Limited (APL) is an EPC and O&M player focused on essential utility infrastructure, with its business primarily driven by the telecom and sewerage segments, which together account for over 94% of FY26 revenue. The company also has an established presence in gas pipelines and is expanding into railway signalling, giving it exposure to multiple infrastructure spending themes. APL has delivered healthy growth in both scale and profitability, with revenue from operations growing at a 25.2% CAGR during FY24-FY26 and PAT growing at a 37.8% CAGR. EBITDA margin improved from 18.5% in FY24 to 20.8% in FY26, while PAT margin increased from 11.3% to 13.7%, supported by higher contribution from EPC execution and improving operating efficiency. APL’s profitability compares favourably with the peer group. Its 20.8% EBITDA margin is well above the 14.5% average of the comparable EPC peers excluding Suyog Telematics, whose asset-light tower-leasing model results in an unusually high margin. APL’s 13.7% PAT margin is broadly in line with the 14.5% peer average, while its 21.3% RoNW is significantly higher than the peer average of around 14.9%. The company’s 22.7% RoCE also indicates healthy capital efficiency. These metrics suggest that APL’s profitability and capital returns are already competitive despite its smaller operating scale. APL also has stronger revenue visibility relative to most peers, with a 3.9x book-to-bill ratio compared with an average of around 2.5x for Likhitha Infrastructure, Bondada Engineering and EMS. This provides a sizeable executable pipeline relative to the company’s current revenue base. However, the quality of earnings needs to be considered alongside its 237-day receivable cycle, volatile operating cash flows and high customer concentration, which can result in a significant gap between reported profitability and cash generation. At the upper price band of INR 99 per share, APL is valued at 19.64x FY26 post-issue EPS of INR 5.04, broadly in line with the 20x average P/E of its four listed peers. Given its faster revenue growth, above-peer profitability on most relevant measures, healthy capital efficiency and strong order visibility, we believe the valuation is reasonable. Accordingly, we recommend a “SUBSCRIBE” rating for the issue with a long-term investment horizon, while recognising the company’s working-capital intensity and customer concentration risks.