Fabtech Technologies Cleanrooms Limited

As per financial performance, Fabtech Technologies Cleanrooms Limited has posted total income / net profits of Rs 113.95 Cr / Rs 3.65 Cr (FY22), Rs 125.10 Cr / Rs 8.01 Cr (FY23), Rs 97.99 Cr / Rs 5.65 Cr (FY24) and Rs 62.23 Cr / Rs 5.19 Cr (H1 FY25). So as per previous financials data, company has shown zig-zag results and trade receivables is around 53% of FY24 total income. Company has posted an average EPS of Rs 7.35 and average RoNW of 14.08% for last three fiscals. Issue is priced at a P/BV of 1.24 as per NAV of Rs 68.33/- as on 30.09.24. If we attribute latest earnings of FY23, FY24 and annualized FY25 on fully diluted equity post issue, then asking price is at a P/E of around 13.08, 18.53 and 10.09 respectively, which looks fairly priced. As per RHP, there is no listed peers. On BRLM's front, Vivro Financial Services Private Limited is associated with this SME IPO and this is 4th IPO from the lead manager in last 2 years. From last 3 IPOs, all opened above issue price or at par on the day of listing. As of now from last 3 IPOs, all are trading above issue price or at par as on today. ( As on 03.01.25 ) As per financials, Fabtech Technologies Cleanrooms Limited has shown zig-zag results, RoNW is 11.95% and P/E is respectively 13.08, 18.53 and 10.09 as per FY23, FY24 and annualized FY25 earnings. So, issue looks fairly priced, but trade receivables is around 53% of FY24 total income. Company is engaged in the business of manufacturing and providing design-to-validation solutions of pre-engineered and pre-fabricated modular panels and doors for building cleanrooms for pharmaceutical, healthcare & biotech sectors. Performance of BRLM post listing is good. So, we give SUBSCRIBE rating for this IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.

• 1 Aasif Ahsan Khan
• 2 Aarif Ahsan Khan
• 3 Hemant Mohan Anavkar
• 4 Manisha Hemant Anavkar