IC Electricals Company Limited is engaged in providing advanced engineering solutions primarily for Indian Railways. The company manufactures a wide array of electronic products, including regulators, battery chargers, emergency lights, inverters, microprocessor-based control systems, and vigilance control devices. The company also operates an Engineering, Procurement, and Construction (EPC) division where it executes turnkey railway electrification projects encompassing the design, supply, erection, testing, and commissioning of 25 kV AC overhead equipment (OHE) and traction substation (TSS) systems. he company predominantly operates on a Business-to-Government (B2G) model, generating over 81% of its revenue from government departments and ministries. Its major clients include the Central Organization for Railway Electrification and various railway divisions like Northern Railway. In addition to the government sector, the company caters to non-government clients, which make up the remaining ~18% of revenue. These include civil contractors, rolling stock manufacturers, and Original Equipment Manufacturers (OEMs) supplying critical components for Indian Railway coaches and locomotive systems. The company’s manufacturing operations are supported by three facilities strategically located in Bahadrabad, Haridwar, Uttarakhand (Plot No. E-88, Plot No. E-93, and Plot No. E-94). These facilities are equipped with advanced machinery to maintain the quality of their critical railway components and rotating machine. For the financial year ended March 31, 2026, the company's total installed capacity was 30,384 pieces. During the same period, the actual production achieved was 14,779 pieces, which translates to a capacity utilization rate of 48.64%. This marks a steady improvement from previous years, where capacity utilization stood at 42.69% in FY25 and 33.88% in FY24. As per financial performance, IC Electricals Company Limited has posted total income / net profits of Rs 99.75 Cr / 4.62 Cr (FY24), Rs 122.39 Cr / Rs 9.41 Cr (FY25) and Rs 143.81 Cr / 14.09 Cr (FY26). So as per previous financials data, the company has shown good growth, and the trade receivables to total sales ratio is well maintained at around 8.18%, 6.07%, and 13.45% for FY24, FY25 and FY26 respectively. Furthermore, unlike many peers, the operating cash flow is strictly positive for FY24 (Rs 0.61 Cr), FY25 (Rs 5.16 Cr) and FY26 (Rs 2.09 Cr). The company has a weighted average EPS of Rs 8.32 and a weighted average RoNW of 22.83% for the last three fiscals. The issue is priced at a P/BV of 2.09 as per the NAV of Rs 47.40/- as (31.03.26). If we attribute the latest earnings of FY24, FY25 and annualized FY26 on equity post-issue, then the asking price of Rs 66 is at a P/E of around 39.11, 19.20 and 12.82 respectively. As per RHP, comparison between listed peers is shown in above table. On BRLM's front, NEXGEN Financial Solutions Private Limited is associated with this IPO, and has handled 4 IPOs in the past. From last 4 IPO, one opened below issue price and remaining all opened above issue price or at par, on the day of listing. As of now, from the last 4 IPOs, two are trading below the issue price and the remaining two are trading above the issue price or at par. (as on 20.06.26) As per financials, Shreedhar Spinners Limited has shown good growth, RoNW is 20.74% (in FY26) and P/E is 33.90, 33.27 and 18.41 respectively as per FY24, FY25 and annualized FY26 earnings. So, the issue looks reasonably priced. The company maintains healthy trade receivables and positive operating cash flows, which provide operational comfort. The company is primarily engaged in the manufacturing, marketing, and sale of disposable paper tableware and packaging, operating in the B2B and B2C segments, which is a highly competitive business segment. While the performance of the BRLM is average, the extreme geographical concentration risk (100% reliance on Odisha) and historical compliance delays raise some operating doubts. So, we give a NEUTRAL rating for this IPO for investors with a high-risk appetite looking for long-term growth. Readers must consult a qualified financial advisor prior to making any actual investment decisions.
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