Started in 2010, Dhara Rail Projects Limited is an ISO 9001:2015 certified company, engaged in the business of executing various types of contractual railway projects and related services which includes Annual Maintenance Contracts (AMC) and repair services for a wide range of railway rolling stock systems. Railway projects includes Supply, Installation, Testing, and Commissioning (SITC) of various electrical equipment across all types of rolling stock and AMC activities involve Annual Maintenance Contracts, repair & maintenance services, inspection and periodic servicing of railway assets such as train lighting equipments, Power car equipments, Tower wagons etc. post its commissioning & installation. The services include annual maintenance and repair of train lighting equipment across all rolling stock categories, including the latest Vande Bharat trains, along with annual maintenance and repair for Overhead Equipment (OHE) maintenance vehicles (Tower Wagons), Power Car equipment and HVAC systems. They provide services to the Ministry of Railways, Government of India, either through directly awarded contracts secured via competitive tendering, which may range up to 3 years, or through pre-bid arrangements with various OEM's. The Company’s reliance on pre-bid collaborations with various OEMs has progressively reduced over time. The Company has, in turn, enhanced its direct engagements through contracts awarded by the Indian Railways. As a result, the Company has diversified its presence beyond the Central Railway to include zones such as East Coast Railway, Western Railway, North Central Railway and Eastern Railway. Consequently, revenue contribution from the Central Railway has reduced proportionately, while revenue from other zones has increased correspondingly. Current order book of company is around Rs 143.78/- Cr which includes 60 ongoing projects as on 12.12.25. As per financial performance, Dhara Rail Projects Limited has posted total income / net profits of Rs 27.39/ 1.06 Cr (FY23), Rs 34.22 / Rs 2.96 Cr (FY24), Rs 47.99 Cr / 6.52 Cr (FY25) and Rs 28.82 Cr / 7.06 Cr (upto Q2 FY26). So as per previous financials data, company has shown good growth, but trade receivables are around 43% of FY25 total sales and short term borrowings is also high. Also sudden rise in net-profit just before IPO raises doubts. Company has an average EPS of Rs 3.99 and average RoNW of 46.12% for last three fiscals. Issue is priced at a P/BV of 7.01 as per NAV of Rs 17.97/- as on 30.09.25. If we attribute latest earnings of FY24, FY25 and annualised FY26 on equity post issue, then asking price is at a P/E of around 64.04, 29.12 and 13.45 respectively. As per RHP, there are no listed peers. On BRLM's front, Hem Securities Limited is associated with this IPOs, and has handled 59 IPOs in last two fiscal years. From last 10 IPOs, two opened below issue price and remaining all above issue price or at par, on the day of listing. As of now, from last 10 IPOs, six are trading below issue price and remaining all are trading above issue price or at par. (as on 18.12.25 ) As per financials, Dhara Rail Projects Limited has shown good growth, RoNW is 50.66% and P/E is 64.04, 29.12 and 13.45 respectively as per FY24, FY25 and annualised FY26 earnings. So issue looks fully priced, but sudden rise in net-profit, higher trade receivables and high short term borrowings raises doubts. The positive is current order book of around Rs 143.78/- Cr with 50 ongoing projects. Company is engaged in the business of executing various types of contractual railway projects and related services, which is highly competitive business segment. Performance of BRLM is poor post listings. 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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