Located at Jamnagar, Winsol Engineers Limited is an integrated engineering, procurement, construction and commissioning company providing Balance of Plant (BoP) Solutions for both Wind and Solar power generation companies. The core services for BoP Solutions includes Foundation work, Substation Civil and Electrical work, Right of Way services, Cabling to substation and Grid, and Miscellaneous work. The clients are in the renewable energy industry who prefer the company for the BoP solutions due to the historic track record of timely completion of project, their expertise and extensive experience in the business and cost efficiency. In addition to the core BoP Solutions, the company also provides Operation and Maintenance services for Plant handling and monitoring. They are ISO-9001-2015, ISO-14001-2015 & ISO-45001-2018 certified company. The company has total team strength of more than 200 (Engineers and Technicians) for execution of various projects. The company has been executing various projects on a Turnkey basis for various clients including Suzlon, Adani Green Energy, Powerica Limited and KP Energy Limited. On materiality basis since 2018, the company has completed more than 55 Projects amounting to more than Rs 17,000.00 lakhs. As of date of Red Herring Prospectus, they have more than 41 Major Ongoing projects having total value of approximately Rs 11,953.31 lakhs out of which invoices of more than Rs 2,115.54 lakhs have been booked as on March 31, 2024 having into unexecuted or unbilled order book of Rs 9,837.75 lakhs. As on the date of this Red Herring Prospectus, the company has a Wholly owned subsidiary namely Repower Infrastructure Private Limited. Repower Infrastructure Private Limited is also engaged in the same line of business as the company. Consequently, the company acquired entire stake of Repower Infrastructure Private Limited on February 10, 2024 making it the Wholly owned subsidiary as on date. As per financial performance, Winsol Engineers Limited has posted total income / net profits of Rs 22.24 Cr / Rs 0.49 Cr (FY21), Rs 60.80 Cr / Rs 1.08 Cr (FY22), Rs 65.44 Cr / Rs 5.18 Cr (FY23) and Rs 52.02 Cr / Rs 6.77 Cr (upto Q3 FY24). So as per previous financials data, company has shown good growth, but sudden increase in net profit, just before IPO generates doubts. Issue is priced at a P/BV of 4.13 as per NAV of 18.14 as on 31.12.24. If we attribute latest earnings of FY22, FY23 and annualised FY24 on fully diluted equity post issue, then asking price is at a P/E of around 79.77, 16.70 and 9.58 respectively, which looks aggressively priced. As per RHP, comparison between listed peers is shown in above table. On BRLM's front, Beeline Capital Advisors Private Limited is associated with this SME IPO and handled 35 SME IPOs in last 3 year. From last 10 SME IPOs, all opened above issue price on the day of listing. As of now from last 10 SME IPOs, one is trading below issue price and remaining are trading above issue price. ( As on 30.04.24 ) As per financials, Winsol Engineers Limited has shown good growth, RoNW is 59.28% and P/E is respectively 79.77, 16.70 and 9.58 as per FY22, FY23 and annualised FY24 earnings. So, issue looks fully priced and sudden rise in net-profit is very surprising. As on March 31, 2024 the unexecuted or unbilled order book value is Rs 98.38 Cr. Company is integrated engineering, procurement, construction and commissioning company providing Balance of Plant (BoP) Solutions for both Wind and Solar power generation companies, which is highly competitive and fragmented segment. Performance of BRLM is good. So, we give "SUBSCRIBE FOR LISTING GAINS" rating for this IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.
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