Susan Electricals India Limited is engaged in the manufacturing of aluminium and copper-based electrical winding wires, conductors, and cables in various specifications, sizes, and configurations. Under their cables segment, the company manufactures low tension (LT) cables—including LT Aerial Bunched cables up to 1.1 kV—high tension (HT) cables of specified voltage grades, and Medium Voltage Covered Conductor (MVCC) cables. The wires and conductors segment primarily features winding aluminium wires and strips, winding copper wires and strips, and aluminium conductors. The company primarily operates on a Business-to-Business (B2B) model, fulfilling structured, contract-based orders for both government and private sector entities. In addition to its core manufacturing activities, the company trades in aluminium wires and rods, which also serve as vital raw materials for its production line, and provides job work services for processing winding wires and strips to certain clients. Susan Electricals features a diverse B2B customer base comprising state-owned electricity distribution utilities (DISCOMs), private infrastructure development/EPC contractors, and private wire and cable companies. During FY26, government customers contributed approximately 35.78% to the total revenue from operations, while private sector entities accounted for the remaining 64.22%. The company serves clients across multiple states such as Uttar Pradesh, Delhi, Madhya Pradesh, and Haryana. It is important to note that the company exhibits customer concentration, with its top 10 customers generating 63.68% of the total revenue in Fiscal 2026. The company conducts its manufacturing operations through three facilities: Unit I located at SSGT Road, Ghaziabad, and Unit II & Unit III located in Sahibabad Industrial Area, Ghaziabad. Collectively, these facilities possess an installed capacity of 3,307.50 Tonnes per annum for winding aluminium and copper wires/strips, and 7,500 Km per annum for HT, LT, and MVCC cables. For the financial year ended March 31, 2026, the company recorded robust operational metrics. Unit I operated at a capacity utilization of 57.23% (actual production of 1,893 MT), Unit II achieved a capacity utilization of 61.64% (actual production of 924.64 MT), and the recently commenced Unit III achieved a capacity utilization of 64.13% (actual production of 962 KM). The company plans to use the fresh issue proceeds to expand Unit III by installing a Continuous Catenary Vulcanization (CCV) line to increase its cable manufacturing capacity. As per financial performance, Susan Electricals India Limited has posted total income / net profits of Rs 103.59 Cr / 0.76 Cr (FY24), Rs 136.05 Cr / Rs 5.65 Cr (FY25) and Rs 269.96 Cr / 18.25 Cr (FY26). So as per previous financials data, the company has shown phenomenal growth, but the trade receivables to total sales ratio is around 12.59%, 18.45% and 17.19% for FY24, FY25 and FY26, and operating cash flow is strictly negative for FY24, FY25 and FY26. The company has an average EPS of Rs 8.07 and an average RoNW of 36.21% for the last three fiscals. The issue is priced at a P/BV of 2.62 as per the calculated post-issue NAV of ~Rs 48.55/-. If we attribute the latest earnings of FY24, FY25 and FY26 on equity post-issue, then the asking price is at a P/E of around 343.24, 45.68 and 14.16 respectively. As per the RHP, a comparison between listed peers is shown in the RHP tables. On BRLM's front, Seren Capital Private Limited is associated with this IPOs, and has handled 7 IPOs in last three fiscal years. From last 7 IPO, that opened above issue price or at par, on the day of listing. As of now, from last 7 IPOs, three is trading below issue price and remaining all are trading above issue price or at par. (as on 06.06.26) As per financials, Susan Electricals India Limited has shown exceptional growth, RoNW is 47.42% (in FY26) and P/E is 343.24, 45.68 and 14.16 respectively as per FY24, FY25 and FY26 earnings. So, the issue looks attractively priced on FY26 earnings. But high trade receivables, heavy reliance on low-margin trading revenue (38.38% in FY26), and consistently negative cash flows raise severe doubts. The company is primarily engaged in the manufacturing, marketing, and sale of electrical winding wires, conductors, and cables, operating entirely in the B2B segment, which is a highly competitive business segment. Performance of the BRLM is good. Due to the severe cash flow issues and high debt burden despite the optical profit growth, we give an AVOID rating for this IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.
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