Abha Power and Steel Limited

As per financial performance, Abha Power and Steel Limited has posted total income / net profits of Rs 54.98 Cr / Rs (0.72) Cr (FY22), Rs 55.12 Cr / Rs 1.4 Cr (FY23), Rs 51.83 Cr / Rs 3.78 Cr (FY24) and Rs 37.55 Cr / Rs 3.62 Cr (upto 15.10.24 FY25). So as per previous financials data, company has shown almost static sales, but net profit increased. Company has posted an average EPS of Rs 2.51 and average RoNW of 14.81% for last three fiscals. Issue is priced at a P/BV of 2.67 as per NAV of Rs 28.08/- as on post issue. If we attribute latest earnings of FY23, FY24 and annualized FY25 on fully diluted equity post issue, then asking price is at a P/E of around 70.79, 27.5 and 15.37 respectively, which looks fully priced. As per RHP, comparison between listed peers is shown in above table. On BRLM's front, Horizon Management Private Limited is associated with this SME IPO and handled 9 SME IPOs in last 3 years. From last 9 IPOs, two opened below issue price and remaining opened above issue price or at par on the day of listing. As of now from last 9 IPO, three are trading below issue price and remaining are trading above issue price or at par as on today. ( As on 26.11.24 ) As per financials, Abha Power and Steel Limited has shown average results, RoNW is 24.17% and P/E is respectively 70.79, 27.5 and 15.37 as per FY23, FY24 and annualized FY25 earnings. So, issue looks fully priced. Company is engaged in the business of casting and manufacturing customised products in mostly all grades of iron and steel, which is highly competitive and fragmented business segment. Performance of BRLM is good post listing. So, we give NEUTRAL rating for this IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.

• 1 Subhash Chand Agrawal
• 2 Satish Kumar Shah
• 3 Atish Agrawal
• 4 Ankit Agrawal
• 5 Leela Devi Agrawal
• 6 Sunflower Commotrade Private Limited