Alpex is a solar photovoltaic (PV) module manufacturer in North India. The PV modules are manufactured using both monocrystalline and polycrystalline cell technologies. The portfolio of solar energy products consists of bifacial, mono perc, Half cut solarPV modules. They also provide integrated solar energy solutions, including engineering, procurement, construction (EPC) of AC/DC Solar Pumps in both Surface and Submersible categories. They manufacture and deliver solar panels in the B2B space and also serve as a contract manufacturer for several large companies, including Luminous, Jakson, and Tata Power. The solar panels are delivered to companies, with a specific focus on EPC companies such as Solarworld Energy Solutions Pvt Ltd, BVG India Limited, Tata Power, Hild Energy Private Limited, and Shakti Pumps India Limited. These companies install the solar panels at their clients' locations after securing orders. As for solar water pumps, they target the B2C segment. They begin by applying for tenders in respective states, and if they succeed in winning the tender, they proceed to assess the installation site and subsequently install solar water pumps at the designated locations. They currently operate from one manufacturing facility in Greater Noida, situated at Plot Number I-25, 26, 27, Surajpur Industrial Area, Site – V, Kasna, Greater Noida, and they have additional offices located in various cities, including New Delhi, Haryana, Chhatisgarh, Mumbai, Ludhiana, Nalagarh (Himachal Pradesh), Jaipur, and Tirupur (Tamil Nadu). The manufacturing unit is equipped with world-class PV manufacturing lines from worldwide suppliers. The fully automatic robotic plants currently have a manufacturing capacity of 450MW, with plans to increase it to 1GW. Capacity utilisation for FY21, FY22, FY23 and H1 FY24 was respectively 34.76%, 18.54%, 14.61% and 37.42%. They have a workforce of 196 people and more than 15 years of industry experience. The Plant is approved after undergoing rigorous quality and production process due diligence by numerous government and private companies, including Tata Power, Luminous Power, Jakson Power, as well as government agencies such as NTPC, NHDC, Haryana Renewable Energy Development Agency (HAREDA), Chhattisgarh State Renewable Energy Development Agency (CREDA), Punjab Energy Development Agency (PEDA), Rajasthan Agricultural Competitiveness Project (RACP), and HP Saur Sinchai Yojana. As per financial performance, Alpex Solar Limited has posted total income / net profits of Rs 149.73 Cr / Rs 3.16 Cr (FY21), Rs 168.54 Cr / Rs 0.20 Cr (FY22), Rs 195.92 Cr / Rs 3.79 Cr (FY23) and Rs 213.11 Cr / Rs 7.60 Cr (upto Q2 FY24). So as per previous financials data, company has shown good growth. But, sudden rise in net-profit just before IPO raises doubts and cashflow of last 2 years are negative. Company has posted an average EPS of Rs 1.38 and average RoNW of 6.15% for last three fiscals. Issue is priced at a P/BV of 2.28 as per NAV of 50.50 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 1407.22, 74.34 and 18.52 respectively, which looks fully priced. As per RHP, comparison between listed peers is shown in above table. On BRLM's front, First Overseas Capital Limited is associated with this SME IPO and handled 10 SME IPOs and 1 main board IPO in last 3 year. From last 9 SME IPOs, two opened below issue price and remaining opened above issue price or at par on the day of listing and from last one main board IPO, that opened above issue price. As of now from last 9 IPOs, one is trading below issue price and remaining are trading above issue price and last 1 main board IPO, that is trading above issue price. ( As on 01.02.24 ) As per financials, Alpex Solar Limited has shown good results, RoNW is 9.55% and P/E is respectively 1407.22, 74.34 and 18.52 as per FY22, FY23 and annualised FY24 earnings. So, issue looks fully priced. Company is a solar photovoltaic (PV) module manufacturer in North India, which is highly competitive and fragmented segment. Performance of BRLM is good. Future of Solar sector is looking bright and good growth opportunity is available. So, we give SUBSCRIBE rating for this IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.
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