Vision Infra Equipment Solutions Limited

As per financial performance, Vision Infra Equipment Solutions Limited has posted total income / net profits of Rs 305.10 Cr / Rs 9.28 Cr (FY22), Rs 368.89 Cr / Rs 9.19 Cr (FY23) and Rs 349.66 Cr / Rs 26.69 Cr (FY24). So as per previous financials data, company has shown almost static sales, but sudden rise in net-profit just before IPO raises doubts. Company has posted an average EPS of Rs 10.38 and average RoNW of 73.23% for last three fiscals. Issue is priced at a P/BV of 12.02 as per NAV of 13.56 as on 31.03.24. If we attribute latest earnings of FY22, FY23 and FY24 on fully diluted equity post issue, then asking price is at a P/E of around 43.29, 43.71 and 15.05 respectively, which looks fully priced. As per RHP, there are no listed peers. On BRLM's front, Hem Securities Limited is associated with this SME IPO and handled 49 IPOs in last 3 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, two are trading below issue price and remaining are trading above issue price as on today. ( As on 04.09.24 ) As per financials, Vision Infra Equipment Solutions Limited has shown almost static sales, RoNW is 113.75% and P/E is respectively 43.29, 43.71 and 15.05 as per FY22, FY23 and FY24 earnings. So, issue looks fully priced, but sudden rise in net-profit just before IPO raises doubts. Company is in business of renting of road construction equipment and trading and refurbishment of these equipment. Performance of BRLM is good. So, we give NEUTRAL rating for this IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.

• 1 Sachin Vinod Gandhi
• 2 Chetan Vinod Gandhi
• 3 Sameer Sanjay Gandhi