Company is into design, assembly and manufacturing of electrical control panels, x-ray machines, fabrication for locomotives and wire harness for air compressors.
For a microcap their client roster includes big names like GE India Industrial Pvt. Ltd., Kirloskar Pneumatics Ltd., Philips India Ltd., Wipro GE Healthcare Ltd., WABTEC etc.
Technocratic promoters with more than 15 years of relevant experience.
R&D team supported by 37 engineers.
They are conducting a trial run of electrical panel that could be used in electric vehicle charging stations. This opens a huge market.
They are also trying to enter the Aerospace industry with some products.
IPO is being done for growth capex and debt payment.
Available at a trailing valuation of 20 PE.
Their EBITDA margin is around 16%. With higher value addition, there is scope for margin improvement.
Risks:
Majority of their sales is through electrical control panels which means other categories are yet to take off in a meaningful way.
Top 5 customers account for 93% of sales. This is very risky but not unsurprising for a company of this size.
With multiple different target verticals, need to track if company can deploy capital well and doesn’t get distracted.
Very limited information about 3/5 year growth plans and long term vision.
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