Started in 2015, ACME Solar Holdings Limited is one of the largest solar IPPs in India, having a portfolio of solar power projects (which comprises Operational and Under-construction solar power projects) with an aggregate capacity of 2,351 MWp (1,814 MW) as of the date of this Draft Red Herring Prospectus. Company develop, build, own, operate and maintain utility scale grid connected solar power projects (through our in-house EPC and O&M operations), and generate revenue through the sale of electricity to central and state government entities and government-backed corporations. They are focused on developing and operating on-grid solar power projects using the latest PV technology. ACME Solar has grown its portfolio of Operational solar power projects from a 15 MW solar power project in Gujarat that was commissioned in December 2011 to having Operational solar power projects with an aggregate installed capacity of 1,043 MWp (874 MW) as of the date of this Draft Red Herring Prospectus. Additionally, as of the date of this Draft Red Herring Prospectus, company has Under-construction solar power projects with an aggregate capacity of 1,284 MWp (940 MW), which company expects to be commissioned in phases by November 2018. They are present across 12 Indian states, Uttarakhand, Gujarat, Chhattisgarh, Telangana, Karnataka, Punjab, Bihar, Uttar Pradesh, Odisha, Madhya Pradesh, Rajasthan and Andhra Pradesh with a portfolio of 33 Operational projects and 14 Under construction projects, of which 50.2% (in terms of capacity) are with central government entities. On performance front, AMSL has posted turnover/net profits of Rs. 37.46 cr. / Rs. 2.96 cr. (FY13), Rs. 72.88 cr. / Rs. 5.33 cr. (FY14), Rs. 108.77 cr. / Rs. 7.45 cr. (FY15), Rs. 159.53 cr. / Rs. 10.0 cr. (FY16) and Rs. 211.8 cr. / Rs. 18.57 cr. (FY17). For H1 of FY18, it has reported net profit of Rs. 7.11 cr. on a turnover of Rs. 109.47 cr. Thus company has posted healthy growth over last couple of years on consistent basis. AMSL has posted an average EPS of Rs. 10.10 and average RoNW of 25.65% for last three fiscals. Issue is priced at a P/BV of 5.05. Listed peers as per DRHP are trading in range of 18 to 28 P/E ratio. If we attribute latest earnings on fully diluted equity post issue, then asking price is at a P/E of around 40, which looks aggressively priced when comparing with peers. As per financials, company's growth is very good, RoNW is 25.65% for last three fiscals and issue is priced at P/E of around 40 as per latest earnings. Company is working in electronics and defense sectors and Government's initiatives for Make in India for defense related solutions which will be very beneficial. So we give SUBSCRIBE rating to this IPO.
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