Safety Controls & Devices Limited primarily engaged in the EPC (Engineering, Procurement, and Construction) business, focusing on the installation of substations, construction of solar plants, installation of firefighting equipment, currently they are also undertaking some construction projects of hospitals for the Ministry of Ayush. Based in Lucknow, Uttar Pradesh, the operations are carried out as an engineering enterprise. They have experience in executing turnkey projects across multiple sectors like transmission and distribution, solar energy, EV charging infrastructure, fire protection systems and hospital construction. The Company commenced operations as a provider of design, installation and supply services for fire equipment, firefighting systems and fire alarms. The Company expanded its capabilities and diversified its portfolio to address the growing needs of other industries. They expanded the capabilities and diversified the portfolio to meet the needs of other industries. While initially focused on fire protection, they transitioned into projects involving the design, engineering, supply, erection, testing, and commissioning of transmission substations, such as 220 KV GIS Substations and 400 KV AIS Substations. In addition to its work in transmission substations, the Company has also expanded into renewable energy through the construction of solar power plants on a turnkey basis. Its diversified capabilities extend into the fire protection business, ensuring the safety and regulatory compliance of industrial, commercial and residential spaces. Furthermore, the Company has entered the healthcare sector, participating in the construction of hospitals under the Ministry of Ayush, thereby reinforcing its position as a versatile and reliable provider of engineering services provider across multiple sectors. In 2009, they undertook the construction, erection, and civil work for a 220/33 KV Substation at Kanpur South, awarded by Uttar Pradesh Rajkiya Nirman Nigam Ltd., with contracts for supply, erection, and civil work awarded on April 30, 2009, October 28, 2009, and October 30, 2009, respectively. In 2015, they were awarded an EPC contract for a 400 KV Substation at Allahabad valued at ?124.2 Crores by UP Power Transmission Co. Ltd., which commenced on July 8, 2015. These projects reflect the transition from the fire protection segment to the power infrastructure sector, demonstrating the ability to undertake complex projects. They have successfully commissioned transmission substations up to 400 KV and firefighting systems for substations up to 765 KV. They have placed into operation 19 substations till date for various public and private utilities and are currently expanding into utility-scale solar power projects and electric vehicle charging stations. As per financial performance, Safety Controls & Devices Limited has posted total income / net profits of Rs 49.25 / 0.43 Cr (FY23), Rs 45.70 / Rs 4.01 Cr (FY24), Rs 103.50 Cr / 8.99 Cr (FY25) and Rs 68.51 Cr / 8.52 Cr (upto 31.01.26 FY26). So as per previous financials data, company has shown good growth, but sudden rise in net-profit just before IPO and higher trade receivables (around 84% of FY25 total sales) raises concerns. Also net-cash flow is negative. Company has an average EPS of Rs 4.90 and average RoNW of 18.88% for last three fiscals. Issue is priced at a P/BV of 2.03 as per NAV of Rs 39.39/- as on 31.01.26 If we attribute latest earnings of FY24, FY25 and annualised FY26 on equity post issue, then asking price is at a P/E of around 39.57, 17.64 and 15.51 respectively. As per RHP, comparison between listed peers is shown in above table. On BRLM's front, Sobhagya Capital Options Private Limited is associated with this IPOs, and has handled 7 IPOs in last three fiscal years. From last 7 IPOs, three opened below issue price and remaining all above issue price or at par, on the day of listing. As of now, from last 7 IPOs, five are trading below issue price and remaining all are trading above issue price or at par. (as on 01.04.26 ) As per financials, Safety Controls & Devices Limited has shown good growth, RoNW is 21.32% and P/E is 39.57, 17.64 and 15.51 respectively as per FY24, FY25 and annualised FY26 earnings. So issue looks fully priced. But, sudden rise in net-profit just before IPO, higher trade receivables and negative cash-flow raises doubts. Company is engaged in the EPC (Engineering, Procurement, and Construction) business, focusing on solar plants, installation of firefighting equipment and construction projects, which is highly competitive business segment. Performance of BRLM is poor post listing. So, we give AVOID rating for this IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.
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