Atmastco Limited is an ISO 9001-2015, ISO 9001-2015, ISO 45001-2018 & ISO 14001-2015 certified Company engaged in the business of executing turnkey/Engineering Procurement and Construction Company (EPC) contracts in ferrous and non-ferrous sector and providing end-to-end solutions offering multi-disciplinary services and project management solutions. They are mainly engaged in business of 1. EPC 2. Steel Fabrication 3. Defence (by wholly owned subsidiary) They are also into manufactured products i.e. design, manufacturing and supply of precision equipments and heavy fabrication structures for various industrial use and other incomes such as Ceiling Girder, Railway Girder, Columns & Bracings, Bolted Structures, Equipment's and Pressure ducts, Box Columns etc. which are used in Power and Energy, Steel Plants, Cement Plants, Railway Bridges, Water Treatment Plants, Refinery & Fertilizer plants, Pre-Engineered Building etc. They have more than two decades of experience in executing projects involving manufacturing and fabrication work of heavy structures. They are also engaged in the business of trading steel, iron, chemical alloys, metals, grinding wheels, welding electrodes, abrasives, industrial helmets which are used extensively for industrial use. The Company is recognized as an approved vendor in the Master list of Approved Vendors issued by the Quality Assurance Civil Directorate, Research Designs, Standards Organization, Ministry of Railways and Government of India for fabrication of Composite Girder and Other Steel Plate Girder Part B. The customer base includes a diverse set of industries including power plants, refineries, steel plants, Railways, cement plants, Industrial and Infrastructure, Chemicals, Pharmaceuticals, Petrochemicals, Refineries, Power, Oil & Gas Explorations, etc. Company has two manufacturing units, Unit I - Bhilai, Durg and Unit II - Dhamdha, Durg, in Chhattisgarh. Atmastco Defence Systems Private Limited, a wholly owned subsidiary, carry on the business of manufacture of bullet proof jackets & helmets especially for military application and full body protector for female troops and related activities. As on 31.01.24, order book is around Rs 742/- Cr. As per financial performance, Atmastco Limited has posted total income / net profits of Rs 69.90 Cr / Rs 0.60 Cr (FY21), Rs 94.68 Cr / Rs 3.23 Cr (FY22), Rs 242.78 Cr / Rs 12.77 Cr (FY23) and Rs 67 Cr / Rs 6.28 Cr (upto 31.08.23 FY24). So as per previous financials data, company has shown good growth. Also, company has healthy order book. Company has posted an average EPS of Rs 5.11 and average RoNW of 14.38% for last three fiscals. Issue is priced at a P/BV of 1.83 as per NAV of 42.16 as on 31.08.23. 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 58.96, 14.91 and 12.62 respectively, which looks fully priced. As per RHP, there are no listed peers. On BRLM's front, Affinity Global Capital Market Private Limited is associated with this SME IPO and handled 2 SME IPOs in last 1 year. From last 2 SME IPOs, all opened below issue price on the day of listing. As of now from last 2 IPOs, one is trading below issue price and remaining is trading above issue price. ( As on 12.02.24 ) As per financials, Atmastco Limited has shown good results, RoNW is 23.15% and P/E is respectively 58.96, 14.91 and 12.62 as per FY22, FY23 and annualised FY24 earnings. So, issue looks fully priced. Also company has Rs 742/- Cr order book as on 31.01.24. Company is engaged in business of EPC, steel fabrication and defence, which is highly competitive and fragmented segment. So, we give NEUTRAL rating for this IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.
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