Teja Engineering Industries Limited (which acquired the ongoing proprietorship firm M/s Teja Engineering Services) is an engineering service provider operating across the Oil & Gas, Power, and Energy sectors. The company specializes in Operation & Maintenance (O&M) including Annual Maintenance Contracts (AMC), Erection & Commissioning (E&C), overhauling, decommissioning, and the testing and servicing of safety relief valves (SRVs). Rather than manufacturing equipment, the company focuses on deploying technical manpower to ensure the smooth operation of CNG stations, gas compression plants, and natural gas distribution terminals. The company is strategically shifting its business model to include comprehensive Turnkey Solutions by introducing Gas Engine Driven Reciprocating Gas Compressor Packages. Instead of standalone O&M, the company plans to provide fully integrated gas compression systems on a per-unit revenue basis. This means the company will earn revenue for every cubic meter of gas compressed by its equipment, enhancing long-term cash flow predictability and aligning income with actual service delivery. Teja Engineering operates predominantly as a Business-to-Business (B2B) and Business-to-Government (B2G) service provider. Its client base is made up of large Corporates, Original Equipment Manufacturers (OEMs), and Public Sector Undertakings (PSUs) engaged in the manufacturing and supply of compressors for gas and oil distribution. The company relies heavily on strong, established customer relationships, with its top 10 clients contributing over 98.95% of its total revenue in FY25. As a highly manpower-intensive service provider, Teja Engineering Industries does not rely on traditional heavy manufacturing plants, meaning standard manufacturing capacity utilization metrics are not directly applicable. However, its execution scale is vast; as of November 2025, the company was actively managing 728 O&M sites across 15 states in India. To support its expansion into safety relief valve (SRV) maintenance and gas compression, the company operates testing and maintenance centers from leased premises in the Palej Industrial Estate in Bharuch, Gujarat. With the funds raised through this IPO, the company is acquiring advanced natural gas compressor packages with capacities of 20,000 SCMD (Standard Cubic Meters per Day) and modernizing its facilities to accommodate large-scale CNG infrastructure projects and precision calibration services. As per financial performance, Teja Engineering Industries Limited has posted total income / net profits of Rs 24.58 / 1.27 Cr (FY23), Rs 31.62 / Rs 2.16 Cr (FY24), Rs 55.23 Cr / 4.02 Cr (FY25) and Rs 54.32 Cr / 4 Cr (Upto Q3 FY26). So as per previous financials data, company has shown good growth, also trade receivables and debt are under control. Company has an average EPS of Rs 7.91 and average RoNW of 32.29% for last three fiscals. Issue is priced at a P/BV of 6.24 as per NAV of Rs 35.24/- as on 31.12.25 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 65.43, 35.16 and 26.44 respectively. As per RHP, comparison between listed peers is shown in above table. On BRLM's front, Interactive Financial Services Limited is associated with this IPOs, and has handled 31 IPOs in last three fiscal years. From last 10 IPOs, seven opened below issue price and remaining all opened above issue price or at par, on the day of listing. As of now, from last 10 IPOs, seven are trading below issue price and remaining all are trading above issue price or at par. (as on 25.06.26) As per financials, Jivial Industries Limited shown good growth, RoNW is 41.09% and P/E is 37.93, 30.80 and 23.29 respectively as per FY24, FY25 and annualised FY26 earnings. So, issue looks fully priced. Trade receivables and debt are under control. The company specializes in the production and fabrication of hardware structures and accessories, which is highly competitive business segment. Performance of BRLM is poor. So, we give NEUTRAL rating for this IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.
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