Akanksha Power and Infrastructure Limited is engaged in the business of manufacturing of electric equipments, including electrical panels, instrument transformers, and vacuum contactors, catering to consumers from institutions, industries and electricity transmission and distribution utilities. The Company has two (2) manufacturing plants, situated at Plot No. 87/4, MIDC, Satpur, Nashik - 422007, Maharashtra, India, and F - 97, MIDC, Satpur, Nashik- 422007, Maharashtra, India. The major commercial operation of the Company started in the year 2010, as an input based rural power distribution franchise (DF) in Khaira Electrical Subdivision, Balasore, Odisha. In the year 2013, the Company established its manufacturing facilities and started production of APFC Panels to provide Power Quality Solution. Besides, the Company entered into a new sector of business, i.e., turnkey construction of High Tension (HT) and Low Tension (LT) electrical infrastructure including 33/11 KV Substations, Distribution Substations etc. In the year 2016, the Company added new products like Current Transformer (CT), Potential Transformer (PT), and Residual Voltage Transformer (RVT), used to measure current and voltage in electrical systems. In 2018, the Company got the green field LED street light projects on turnkey basis in 12 districts of Odisha and currently, They are providing operation and maintenance (O&M) services for the next 7 years. In the year 2019, the company launched another new product - Vacuum Contactors. These contactors are used in heavy-duty applications and designed to operate reliably even in harsh environments. Additionally, the company also introduced capacitor switches that help control power systems more efficiently. Now the Company is ready to launch its own Advanced Metering Infrastructure (AMI) for effective control of Technical & Commercial losses. The Company is engaged in business to business (B2B) segment as well as they also supply the products to end customers. The Company caters to engineering projects and products to its various clients in India. They supply the products to institutional, non-institutional and corporate customers. In addition, they supply the products to power utilities, which primarily includes supply of APFC Panels, Instrument Transformers and other electrical equipments under direct contractual arrangements to electricity boards and power distribution companies, as well as through project contractors. As per financial performance, Akanksha Power and Infrastructure Limited has posted total income / net profits of Rs 74.41 Cr / Rs 3.92 Cr (FY21), Rs 52.07 Cr / Rs 2.41 Cr (FY22), Rs 46.44 Cr / Rs 2.91 Cr (FY23) and Rs 10.27 Cr / Rs 0.71 Cr (upto Q1 FY24). So as per previous financials data, company has shown declining growth. Company has posted an average EPS of Rs 2.43 and average RoNW of 21.39% for last three fiscals. Issue is priced at a P/BV of 2.36 as per NAV of 23.35 as on post issue. If we attribute latest earnings of FY22, FY23 and annualised FY24 on fully diluted equity post issue, then asking price is at a P/E of around 42.28, 35.06 and 35.81 respectively, which looks fully priced. As per RHP, comparison between listed peers is shown in above table. On BRLM's front, Narnolia Financial Services Limited is associated with this SME IPO and handled 6 SME IPOs in last 1 years. From last 5 IPOs, all are opened above issue price or at par on the day of listing. As of now from last 5 IPOs, one is trading below issue price and remaining are trading above issue price. ( As on 22.12.23 ) As per financials, Akanksha Power and Infrastructure Limited has shown declining growth, RoNW is 18.20% and P/E is respectively 42.28, 35.06 and 35.81 as per FY22, FY23 and annualised FY24 earnings. So, issue looks aggressively priced. Company is in business of manufacturing of electric equipments, including electrical panels, instrument transformers, and vacuum contactors, which is highly competitive and fragmented segment. Performance of BRLM is good. So, we give AVOID rating for this IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.
✍️ Post a Comment