Ganesh Green Bharat Limited is providing comprehensive portfolios in the field of supply, installation, testing and commissioning (SITC) of solar and electrical goods and services to various government bodies. They have completed projects under various schemes of Central and State Government like - Saubhagya Scheme, KUSUM Scheme, Saur Sujla Yojna. They also forayed into the business of designing, construction, installation and operation and maintenance of Water Supply Scheme Projects like the Mukhya Mantri Nishchay Quality Affected Yojna, Har Ghar Jal (Jal Jeevan Mission) etc. From the year 2019, company started bidding for Water Supply Scheme Projects wherein they are engaged in designing, construction, supply, testing and commissioning of Water Supply Scheme Projects which involves construction of piped water supply with installation of polyethylene water storage tank to provide drinking water through functional household tap connections in villages with all allied works of the scheme and successful trial run. Company's Subsidiary, Souraj Energy Private Limited (Souraj) is involved into manufacturing of solar photo-voltaic ('PV') modules with installed capacity of 192.72 MW. They offer the products and services in various specifications and customization options to cater to the unique demands of the customers. Solar PV modules are manufactured using both polycrystalline and monocrystalline cell technology. They have also initiated the use of Topcon Solar Cell Technology for manufacturing Solar PV Modules. These PV modules have wattages between 150Wp – 575Wp (370 Wp - 550Wp Mono PERC P Type Solar Cell (10BB) and 385Wp to 575 Wp - Mono PERC N Type Topcon Solar Cell (16BB) module. The Subsidiary operates from its manufacturing facility situated at Mehsana, Gujarat and is equipped with machines like: Glass Loader, EVA Cutting Machine, Layup Machine, Stringer Bussing, Back sheet, Pre & Post – EL – Testing, Laminator Framing, Sun Simulator, Aluminium frame cutting & punching machine etc. They have also set up an additional line for manufacturing of solar photo-voltaic ('PV') modules in the company with installed capacity of 236.73 MW which has recently started commercial production. Thus, over the years company has diversified its business as service provider into multiple verticals catering to (i) Solar System & Allied Services, (ii) Electrical contracting services (iii) Water Supply Scheme Projects and as a manufacturer of solar photovoltaic ('PV') modules. In the last 10 years, they have successfully completed (i) 17 work orders under Solar System & Allied Services aggregating to Rs 18515.46 Lakhs (ii) 7 work orders under Electrical contracting services aggregating to Rs 2146.20 Lakhs (iii) 2 work order under Water Supply Scheme Projects aggregating to Rs 1667.70 Lakhs. As of March 31, 2024 the Order Book includes (i) 10 work orders under Solar System & Allied Services aggregating to Rs 27328.03 (ii) 7 work orders under Electrical contracting services aggregating to Rs 2645.57 Lakhs, (iii) 1 work order under Water Supply Scheme Projects for an aggregate value of Rs. 1423.97 lakhs. In addition to the execution of projects independently, they also enter into joint ventures with other infrastructure companies to jointly bid and execute projects. Joint ventures or partnerships enable them to achieve pre-qualification, both technical and financial, with the joint venture partner at the time of the bid. As on March 31, 2024, they are executing 5 projects in partnership with the joint venture partner. As per financial performance, Ganesh Green Bharat Limited has posted total income / net profits of Rs 106.12 Cr / Rs 5.20 Cr (FY22), Rs 90.59 Cr / Rs 5.13 Cr (FY23), and Rs 171.96 Cr / Rs 21.82 Cr (FY24). So as per previous financials data, company has shown growth, but sudden rise in net-profit just before IPO raises doubts for results. Company has posted an average EPS of Rs 7.43 and average RoNW of 28.28% for last three fiscals. Issue is priced at a P/BV of 6.04 as per NAV of 31.46 as on 31.03.24. If we attribute latest earnings of FY22, FY23 and FY24 on fully diluted equity post issue, then asking price is at a P/E of around 90.49, 57.78 and 21.59 respectively, which looks fully priced. As per RHP, comparison between listed peers is shown in above table. On BRLM's front, Hem Securities Limited is associated with this SME IPO and handled 45 SME IPOs in last 3 years. From last 10 SME IPOs, all opened above issue price or at par on the day of listing. As of now from last 10 SME IPOs, all are trading above issue price and remaining are trading above issue price. ( As on 03.07.24 ) As per financials, Ganesh Green Bharat Limited has shown good growth, RoNW is 34.72% and P/E is respectively 90.49, 57.78 and 21.59 as per FY22, FY23 and FY24 earnings. So, issue looks fully priced, but sudden rise in net-profit just before IPO raises doubts. Company is engaged in the business of in the field of supply, installation, testing and commissioning (SITC) of solar and electrical goods and services to various government bodies, which is highly fragmented and competitive business segment. Performance of BRLM is good. 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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