Indo Farm Equipment Limited

As per financial performance, Indo Farm Equipment Limited has posted total income / net profits of Rs 352.52 Cr / Rs 13.72 Cr (FY22), Rs 371.82 Cr / 15.37 Cr (FY23), Rs 375.95 Cr / Rs 15.60 Cr (FY24) and Rs 75.54 Cr / 2.45 Cr (Q1 FY25). So as per previous financials data, company has shown steady growth. Company has an average EPS of Rs 4.05 and average RoNW of 5.06% for last three fiscals. Issue is priced at a P/BV of 2.48 as per NAV of Rs 86.75/- as on 30.06.24. If we attribute latest earnings of FY23, FY24 and annualised FY25 on equity post issue, then asking price is at a P/E of around 67.21, 66.25 and 105.25 respectively. As per RHP, comparison between listed peers is shown in above table. On BRLM's front, Aryaman Financial Services Limited is associated with this IPO, and have handled around 15 IPOs in last three fiscals. From last 10 IPOs, one opened below issue price and remaining opened above issue price or at par on the day of listing. As of now from last 10 IPOs, three are trading below issue price and remaining are trading above issue price or at par as on today.( As on 24.12.24 ) As per financials, Indo Farm Equipment Limited has shown steady growth, RoNW is 4.92% and P/E is 67.21, 66.25 and 105.25 respectively as per FY23, FY24 and annualised FY25 earnings. So issue looks aggressively priced when compared with peers. Company is fully integrated established manufacturer of Tractors, Pick & Carry Cranes & farm equipments, which is highly competitive business segment. So, we give AVOID rating for this IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.

• 1 Ranbir Singh Khadwalia
• 2 Sunita Saini