Vivid Electromech Limited is an ISO 9001:2015 certified manufacturer of Low-Voltage ('LV') and Medium-Voltage ('MV') electrical panels and automation systems, with an operational history of over 30 years. They are engaged in panel manufacturing and system integration, offering electrical and automation solutions that cover engineering, design, fabrication, assembly, testing, and commissioning of control and automation systems. The products are intended for applications in power distribution, load management, process control, and industrial automation across multiple sectors. They manufacture a range of LV electrical panels, including Power Control Centre (PCC) Panels, Intelligent Motor Control Centre (IMCC) Panels, Soft Starter Panels, Motor Control Centre (MCC) Panels, DG Synchronisation Panels, Power Distribution Boards and Units, Automatic Power Factor Correction (APFC) Panels, Variable Frequency Drive Panel, PLC Automation system and Outdoor Panels. The MV electrical panel product range covers 3.3 kV to 33 kV panels and includes specialised products such as 11 kV DG Synchronisation Panels, Control and Relay Panels, 11kV / 33kV Vacuum Circuit Breaker and Vaccum Contactor Panels, Ring Main Gear Panel and MV Automatic Power Factor Correction (APFC) Panels. All the products are type-tested in accordance with applicable standards including IEC 61439-1 & 2, IEC 61641, and IEC 62271-200. In addition to the manufacturing operations, they are engaged in the trading of certain electrical goods, GI Sheet and busducts. They also provide installation, testing and commissioning services tailored to specific customer requirements. The products cater to sectors such as Data Centre & Technology, Infrastructure, Construction & Real Estate including Metro Projects, Solar & Renewable Energy, Industrial Manufacturing and Machinery etc. They maintain OEM associations with ABB, Lauritz Knudsen Electrical & Automation (LK), and Schneider Electric. They are licensed by ABB India Limited to manufacture and integrate ArTu K low-voltage switchboards using ABB components. All of the Company’s revenues were derived from business-to-business ('B2B') customers. They operate two manufacturing facilities in Navi Mumbai and Pune, Maharashtra. The Navi Mumbai unit, located at Plot No. A173/7, T.T.C Industrial Area, MIDC, Kharine, Navi Mumbai- 400710- Maharashtra, India, undertakes the complete manufacturing of Low-Voltage ('LV') and Medium-Voltage ('MV') electrical panels and automation systems, including fabrication, surface treatment, powder coating, assembly, and testing, and is equipped with CNC-enabled fabrication lines, robotic polyurethane (PU) gasketing systems, busbar processing machines, and an in-house powder coating unit. The Pune unit, located at Plot No. 12, 13, 14, 16 16A 16B 16C, 17, 18/11/01 Pune City, Telco Road, Bhosari, Pimpri Chinchwad, Pune-411026-Maharashtra, India is focused on panel assembly operations, for which prefabricated and coated components are supplied from Navi Mumbai. Additionally, Manufacturing Unit–I is certified under ISO 14001:2015 (Environmental Management Systems) and ISO 45001:2018 (Occupational Health and Safety Management Systems). As of the date of this RHP, the manufacturing facilities together have an installed capacity of 7,500 units per annum. They generate revenue primarily from domestic sales, with limited contribution from exports. During these periods, they catered to clients in countries such as Kenya, England, Cote D Ivoire, Solomon Islands, United Arab Emirates, Cameroon, Sri Lanka, Indonesia, Tanzania. The primary raw materials include Cold Rolled Close Annealed (CRCA) sheets, Galvanized Iron (GI) sheets, aluminium and copper bus bars, electrical wires, and industrial paints, which are sourced mainly from domestic suppliers. Switchgear components are procured from original equipment manufacturers (OEMs). As per financial performance, Vivid Electromech Limited has posted total income / net profits of Rs 59.63 / 0.06 Cr (FY23), Rs 89.54 / Rs 4.28 Cr (FY24), Rs 155.77 Cr / 20.24 Cr (FY25) and Rs 70.88 Cr / 9.44 Cr (upto Q2 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 39% of FY25 total sales) raises doubts. As on December 31, 2025, the Order Book was Rs 200.19/- Cr. Company has an average EPS of Rs 16.50 and average RoNW of 57.76% for last three fiscals. Issue is priced at a P/BV of 10.50 as per NAV of Rs 52.87/- as on 30.09.25. 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 115.25, 24.37 and 26.12 respectively. As per RHP, comparison between listed peers is shown in above table. On BRLM's front, Hem Securities Limited is associated with this IPOs, and has handled 63 IPOs in last three fiscal years. From last 10 IPOs, two opened below issue price and remaining all 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 21.03.26 ) As per financials, Vivid Electromech Limited has shown good growth, RoNW is 73.76% and P/E is 115.25, 24.37 and 26.12 respectively as per FY24, FY25 and annualised FY26 earnings. So issue looks fully priced. But, sudden rise in net-profit just before IPO and higher trade receivables raises doubts. Company is engaged in manufacturing of Low-Voltage ('LV') and Medium-Voltage ('MV') electrical panels and automation systems, 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.
✍️ Post a Comment