Ajax Engineering Limited

Ajax Engineering Limited is a leading concrete equipment manufacturer with a comprehensive range of concrete equipment, services and solutions across the concrete application value chain. As of September 30, 2024, they have developed over 141 concrete equipment variants catering to the concrete application value chain, and over the last ten years, they have sold over 29,800 concrete equipment in India. Since the inception 32 years ago, they have developed a comprehensive product portfolio that includes equipment such as self-loading concrete mixers ('SLCMs') and batching plants for the production of concrete, transit mixers for the transportation of concrete, boom pumps, concrete pumps and self-propelled boom pumps for the placement of concrete, slip-form pavers for the paving of concrete and 3D concrete printers for depositing concrete. SLCMs are versatile self-loading machines capable of mixing and transporting concrete ingredients, enabling on-site production of concrete. During Financial Year 2024, approximately 14% of all concrete produced in India was processed through SLCMs. Between Financial Year 2022 and the six months period ended September 30, 2024, the SLCM sales have experienced a CAGR of 45.70%. They are a leading manufacturer of SLCMs in India, with an approximately 77%, 75%, 77% and 86% market share in the SLCM market in India in terms of number of SLCMs sold during the six months period ended September 30, 2024 and Financial Years 2024, 2023 and 2022, respectively.  As of September 30, 2024, company operates four assembling and manufacturing facilities at Obadenahalli, Gowribidanur and Basethahalli in the state of Karnataka, each specializing in distinct product lines, with the Obadenahalli Facility, with an area of 39,660.38 square meters.  The equipment is sold through the dealers in and outside India to a diverse range of customers, including individual contractors, small and mid-sized contracting companies, rental companies, large construction companies and government construction agencies. As of September 30, 2024, the dealer network comprised of 51 dealerships across 23 states in India, and they are accessible to the customers through 114 touch-points, which comprise 51 dealer headquarters and 63 branches (of which, 34 also act as service centers) managed and operated by the dealers. They have expanded the global reach with 25 dealers and distributors across South and Southeast Asia, the Middle East, and Africa, as of September 30, 2024. As per financial performance, Ajax Engineering Limited has posted total income / net profits of Rs 771.85 Cr / Rs 66.21 Cr (FY22), Rs 1,172.57 Cr / 135.90 Cr (FY23), Rs 1,780.07 Cr / Rs 225.15 Cr (FY24) and Rs 794.16 Cr / 101.02 Cr (H1 FY25). So as per previous financials data, company has shown good growth. Company has an average EPS of Rs 14.72 and average RoNW of 15.77% for last three fiscals. Issue is priced at a P/BV of 7.23 as per NAV of Rs 87.04/- as on 30.09.24. If we attribute latest earnings of FY23, FY24, TTM and annualised FY25 on equity post issue, then asking price is at a P/E of around 52.95, 31.96, 29.59 and 35.62 respectively. As per RHP, comparison between listed peers is shown in above table. On BRLM's front, five lead managers are associated with this IPO, and have handled around 173 IPOs in last three fiscals. ( As on 05.02.25 ) As per financials, Ajax Engineering Limited has shown steady growth, RoNW is 19.4% and P/E is 52.95, 31.96, 29.59 and 35.62 respectively as per FY23, FY24, TTM and annualised FY25 earnings, so issue looks fully priced. Company is a leading concrete equipment manufacturer in India, which is niche business segment. GoI is very focused on infrastructure growth, so we may expect good demand for next couple of years. So, we give NEUTRAL rating for this IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.

• 1 Krishnaswamy Vijay
• 2 Jacob Jiten John
• 3 Kalyani Vijay
• 4 Madhuri Vijay
• 5 Prashanth Vijay
• 6 Rachel Rekha Hansen
• 7 Savitha Christeena Alexander
• 8 Sean Alexander
• 9 Green Haven Trust
• 10 Ohana Trust
• 11 Jacob Hansen Family Trust
• 12 The Johns Loaves Trust