NACDAC Infrastructure Limited

As per financial performance, NACDAC Infrastructure Limited has posted total income / net profits of Rs 10.32 Cr / Rs 0.32 Cr (FY22), Rs 11.74 Cr / Rs 0.56 Cr (FY23), Rs 36.33 Cr / Rs 3.14 Cr (FY24) and Rs 13.76 Cr / Rs 1.60 Cr (31.10.24 FY24). So as per previous financials data, company has shown good growth, but sudden rise in sales & net profit in FY24, raises doubts, if company can maintain similar growth rate in future that needs to be watched. Company has posted an average EPS of Rs 2.39 and average RoNW of 17.50% for last three fiscals. Issue is priced at a P/BV of 1.97 as per NAV of Rs 17.76/- as on 31.10.24. 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 65.61, 11.62 and 13.40 respectively, which looks fully priced. As per RHP, comparison between listed peers is shown in above table. On BRLM's front, GYR Capital Advisors Private Limited is associated with this SME IPO and handled 33 SME IPOs in last 4 years. From last 10 IPOs, all opened above issue price or at par on the day of listing. As of now from last 10 IPOs, all are trading above issue price or at par as on today. ( As on 11.12.24 ) As per financials, NACDAC Infrastructure Limited has shown good result, RoNW is 26.39% and P/E is respectively 65.61, 11.62 and 13.40 as per FY23, FY24 and annualized FY25 earnings. So, issue looks fairly priced as per recent earnings, but if company can maintain similar growth rate in future that needs to be watched. As on October 31, 2024, the Company has an Order Book of Rs 8832.66 lakhs. Company is primarily a core-construction company specializing in comprehensive range of civil and structural services, which is highly competitive and fragmented 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.

• 1 Hemant Sharma
• 2 Ashish Saxena
• 3 Uma Sharma