Teerth Gopicon Limited IPO

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The company, a forward-thinking engineering construction and development entity, specializes in the construction of roads, sewerage systems, and water distribution networks primarily within Madhya Pradesh, India. Leveraging the expertise gained over a concise yet impactful period of not more than five years in corporate operations, they’ve also marked their excellence as a subcontractor by constructing residential towers in Indore. This journey of growth and diversification is built on the solid foundation laid by their promoter, Maheshbhai Khumbhani, who initiated Gopi Construction in 2009.

Core Competencies: As a registered civil contractor for various Central and State Government bodies, including ISCDL, IMC, USCL, UMC, and MPJNM, their company has executed a plethora of civil engineering projects. These projects range from building construction, water supply pipelines, sewerage networks, treatment plants, nalla tapping works, reuse networks, over head tanks (OHTs), ground storage reservoirs (GSRs), road works, to the rejuvenation of lakes, showcasing their versatility and capability in handling diverse infrastructure projects.

EPC Contractor Excellence: As an Engineering, Procurement, and Construction (EPC) contractor, they provide comprehensive services that encompass detailed engineering of projects, procurement of construction materials, plant and machinery, along with the construction, execution, operation, and maintenance as per contractual agreements. Their vast pool of manpower, extensive fleet of machinery and equipment, coupled with their engineering prowess, empowers them to manage and execute multiple projects simultaneously. This robust infrastructure and project execution skillset have been pivotal in strengthening their client relationships and securing projects from new clients.

Geographical Footprint and Clientele: Their operations, though concentrated in Madhya Pradesh, span several key cities including Indore, Chhattarpur, Sagar, Dindori, Jabalpur, and Ujjain. Their diverse client portfolio includes prominent entities like Indore Smart City Development Limited, Indore Municipal Corporation, Ujjain Smart City Limited, Ujjain Municipal Corporation, and Madhya Pradesh Jal Nigam Maryadit, underlining their pivotal role in the region’s infrastructural development.

In conclusion, under the adept guidance of their promoter and with a strong focus on quality, innovation, and client satisfaction, their company is poised for continued growth and success in the infrastructure sector, driving development and prosperity in their operational regions.

Objects of the Teerth Gopicon Limited IPO:

The company proposes to utilize the Net Proceeds from the Issue towards funding the following objects: i. Funding the working capital requirements of the company; and ii. General Corporate Purpose.

Teerth Gopicon Limited IPO Details:

Open Date: Apr 08 2024
Close Date: Apr 11 2024
Total Shares: 4,000,000
Face Value: ₹ 10 Per Equity Share
Issue Size: 44.40 Cr.
Lot Size: 1200 Shares
Issue Price: ₹ 111 Per Equity Share
Listing At: NSE Emerge
Listing Date: Apr 16 2024

Promoters And Management:

Maheshbhai Kumbhani aged 48 years, is a Promoter and Managing Director of the company. He has been awarded Honorary ―Doctorate in Construction Management‖ by United States of America International University in the year 2023. He is diploma in civil from Lukhdhirji Engineering College (L.E. College), Morbi. He has been associated with the Company as a director since Inception i.e. October 10, 2019. He is having more than 15 years‘ experience in the construction industry. He possesses expertise over civil works of water supply projects, sewerage projects, structural works, petrol pumps, compound wall, fixing of fencing, approach roads, works for Rig and Hard Surfacing, Drilling, up gradation of face lifting of S.T. Bus Terminal, Factory Building, Construction of steel canopy, school Building, Auditorium etc. Under his able leadership company has achieved many awards. His major roles include administering business strategies to streamline company growth and ensure smooth running of existing operations. Chandrikaben Kumbhani aged 44 years, is a Promoter & Whole-time director of their company. She is Commerce Graduate. She is associated with their Company as a director since Inception i.e. October 10, 2019. She has completed her Bachelor of Commerce from Gujarat University. She looks after to develop and implement the organization‘s strategic plan, create and lead a high- performing professional team, select and manage subcontractors for various construction tasks and many other matters of the company. Pallav Kumbhani aged 22 years, is a Promoter and Non-Executive director of the company. He is associated with the Company as a director w.e.f. February 17, 2021 He is B.Tech. (Civil Engineering) from Rajiv Gandhi Proudyogiki Vishwavidyalaya Bhopal. He develops and carries out the department of Civil Engineering‘s prospective goals and strategic objectives and oversees the civil engineering projects‘ budgeting, planning and execution. He also takes care of communication with both internal and external interest groups in an effective manner and also deals with unforeseen challenges or adaptations that emerge throughout the construction.

Financials of Teerth Gopicon Limited IPO:

Particulars ( In Lakhs )
Revenue from Operations 4,619 3,117 3,908 6,963
Other Income 1 4 7 7
Total Revenue 4,621 3,121 3,915 6,970
Cost of materials consumed 3,683 2,527 3,071 5,094
Changes in Inventories -52 -24 69 -219
Employees Benefit Expenses 155 172 240 304
Other Expenses 726 367 227 568
EBITDA 110 78 308 1,223
Depreciation & Amortisation 41 42 33 80
Finance Cost 0.4 3 23 69
EBIT 68 35 274 1,143
OPM (%) 2.38% 2.49% 7.86% 17.54%
PBT 68 33 252 1073
Tax 22 18 72 289
PAT 46 15 179 784
NPM (%) 1.01% 0.49% 4.58% 11.25%
No.of Shares 119.99 119.99 119.99 119.99
EPS 0.38 0.12 1.49 6.53

Comparison With Peers:

Name of the Company Revenue (In Crore) PAT (In Crore) EPS ( in Rs) P/E CMP Mcap (In Crore)
Teerth Gopicon Limited 39 2 1.49 74.3 111 133
Conart Engineers Limited 35 2 6.27 12.9 112 35
Brahmaputra Infrastructure Limited 179 11 3.68 17.1 87 252
MBL Infrastructure Ltd 159 -51 -4.82 N/A 54.7 573
Tarmat Limited 144 7 3.48 161.0 110 235
* All the data is as per FY23.

Recommendation on Teerth Gopicon Limited IPO:

Review and Recommendation of Teerth Gopicon by team IZ is 4/10. 1. Teerth Gopicon Limited's journey from its inception as a private limited company in 2019 to its transformation into a public entity in 2021 marks a significant phase in its corporate evolution. 2. Operating primarily in the domain of engineering construction and development, Teerth Gopicon Limited has carved a niche in the construction of roads, sewerage systems, and water distribution networks within Madhya Pradesh. The engagement as a subcontractor and the construction of residential towers in Indore further underscore its diversified project portfolio. Despite a corporate track record of less than five years, the roots of the enterprise extend back to 2009 with the establishment of Gopi Construction by the promoter, Maheshbhai Khumbhani, highlighting a legacy of expertise and experience in the construction sector. 3. The company’s client roster is impressive, featuring partnerships with various central and state government bodies alongside ventures into the private sector. This diverse clientele is a testament to Teerth Gopicon Limited's adaptability and capability in executing a wide range of civil engineering projects, from building construction to more complex infrastructure projects like sewerage treatment plants and water supply systems. 4. The competitive landscape in Madhya Pradesh presents both challenges and opportunities for Teerth Gopicon Limited. The company operates in a highly competitive environment, contending with other construction firms on factors such as project complexity, contract value, and service quality. Despite these challenges, the company’s emphasis on quality, performance, and technical capability positions it favorably among its peers, enabling it to secure and execute high-value projects. 5. The Revenue has Increased from Rs.46 Crores in FY21 to Rs.39 Crores in FY23. 6. The EBITDA has Increased from 1 Crore in FY21 to 3 Crores in FY23. 7. The PAT has Increased from 46 Lakhs in FY21 to 1.8 Crores in FY23. 8. As per FY23, CFO/EBITDA is 0.92, As per FY24, EPS is 7.84, 9. Market Capitalization is 133 Crore & P/E is 14.15x based on FY24.

Lead Manager of Teerth Gopicon Limited IPO:

  1. Interactive Financial Services

Registrar of Teerth Gopicon Limited IPO:

  1. Bigshare Services Private Limited

Company Address:

Teerth Gopicon Limited 703, Sapath Complex-I, Opp. Rajpath Club, Near Madhur Hotel, Bodakdev, Ahmedabad-38005 Phone: +91 9979840806 Email: investor@teerthgopicon.com Website: http://www.teerthgopicon.com/

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