BCPL Railway Infrastructure Limited

Started in 1995, BCPL Railway Infrastructure Limited is Kolkata - West Bengal based company, engaged in the business of Railway Infrastructure Development involving design, drawing, supply, Erection and Commissioning of 25KV, 50Hz Single Phase Traction Overhead Equipment. Some of the major clients of the company are various zones of the Indian Railways like Eastern Railway, South Eastern Railway, South East Central Railway, Northern Railway, East Coast Railway, North Frontier Railway, East Central Railway, Central Organisation For Railway Electrification (CORE) as well as large Public and Private Sector Undertakings like RITES Ltd., Durgapur Projects Ltd., Adhunik Group, Usha Martin Industries Ltd, Essel Mining Industries Ltd., Jindal Steel and Power Ltd., Haldia Energy Limited, Rungta Mines, Electrosteel, etc. The company has total 108 employees, out of them 71 are skilled employees. As per financial performance, BRIL has posted total income/net profits of Rs. 32.09 cr. / Rs. 2.07 cr. (FY14), Rs. 55.53 cr. / Rs. 3.27 cr. (FY15), Rs. 25.74 cr. / Rs. 0.96 cr. (FY16), Rs. 34.99 cr. / Rs. 1.27 cr. (FY17) and Rs. 50.64 cr. / Rs. 4.05 cr. (FY18). So company has shown mixed results over the years and there is sharp jump in net profit in FY18. Issue is priced at a P/BV of 1.08 on the basis of NAV of Rs. 32.50 post issue. Company has posted average EPS of Rs 3.45 and RoNW 7.20% for last three fiscals. If we consider latest earnings and attribute it on fully diluted equity post issue, then asking price is at a P/E of around 14.52 and as per RHP there is no similar listed peers. On BRLM's front, for Gretex Corporate Services Private Limited this is the 17th IPO. From last 10 IPOs, 2 listed below issue price, 3 at par and remaining above issue price. As of now, from last 10 IPOs, 6 are trading below issue price and remaining above issue price. ( As on 03.10.18 ). As per financials, Company's performance is mixed, RoNW is 7.20% and issue looks fully priced. There is huge scope of growth for the company, but also there are number of big players in same business segment. Performance of BRLM is poor. So we give NEUTRAL rating to this SME IPO.

• 1 Mr. Jayanta Kumar Ghosh
• 2 Mr. Uday Narayan Singh
• 3 Mr. Aparesh Nandi
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