Vruddhi Engineering Works Limited IPO

Apply 0
Avoid 0

The company’s business overview eloquently captures its core operations and strategic positioning within the real estate, construction, and infrastructure industries. The emphasis on mechanical splicing solutions, encompassing the design, engineering, supply, and on-site services of rebar couplers, highlights a comprehensive approach to modern construction challenges. The shift towards mechanical splicing over conventional methods underscores a commitment to innovation and efficiency, catering to the evolving needs of construction contractors, real estate developers, and infrastructure companies.

The financial figures provided, showcasing revenue growth from the sale of rebar couplers over the fiscal years, reflect the increasing market acceptance and demand for your solutions. This growth trajectory is commendable, especially considering the expansion into trading of steel products and machinery post the acquisition of Kosmo Ventures. This strategic move not only diversifies your product offerings but also broadens your market reach, enhancing revenue streams and fortifying your market position.

The acquisition of Kosmo Ventures, along with its assets and liabilities, signifies a pivotal moment in the company’s journey, marking its foray into the trading of reinforcement bars and machinery. This expansion aligns with the company’s objective to provide a wider array of products and services to its clientele, further establishing its foothold in the construction and infrastructure sectors. The reported revenue from the trading of steel products for the two months ending March 31, 2023, indicates a promising start to this new venture.

Their focus on customer-centric solutions, from customized design and engineering of rebar couplers to efficient logistics and inventory management, speaks volumes about their commitment to quality and service excellence. The reliance on third-party manufacturers for the production of rebar couplers, while maintaining stringent quality control measures, ensures that your offerings meet the high standards expected by your clients.

In summary, their company presents a well-rounded business model focused on innovation, quality, and customer satisfaction within the construction and infrastructure sectors. The strategic expansion into trading, along with a solid foundation in mechanical splicing solutions, positions the company for sustained growth and market leadership. Moving forward, maintaining this focus on innovation, quality control, and customer relationships will be key to navigating the challenges and opportunities in the evolving construction industry landscape.

Objects of the Vruddhi Engineering Works Limited IPO:

The company intends to utilize the net proceeds from the issue towards the funding of the following objects: i. To meet working capital requirements; ii. General Corporate Purpose.
DRHP of Vruddhi Engineering Works Limited IPO
RHP of Vruddhi Engineering Works Limited IPO

Vruddhi Engineering Works Limited IPO Details:

Open Date: Mar 26 2024
Close Date: Mar 28 2024
Total Shares: 680,000
Face Value: ₹ 10 Per Equity Share
Issue Size: 4.76 Cr.
Lot Size: 2000 Shares
Issue Price: ₹ 66 - 70 Per Equity Share
Listing At: BSE SME
Listing Date: Apr 03 2024

Promoters And Management:

Bindi Kunal Mehta, age 41 years, is the Promoter and Chairman & Managing Director of the Company and she has been on the board since incorporation. She holds degree of bachelor of commerce in financial accounting and audit from University of Mumbai in 2003. She has experience of more than 6 years in steel industry. Vedant Mukesh Mehta, age 29 years, is the Whole Time Director of the Company and he has been on the board since incorporation. He holds bachelor of electronic engineering degree from University of Mumbai, and post graduate diploma in rural management from Institute of Rural Management Anand in 2019. He has experience of more than 3 years in steel industry. Varsha Mukesh Mehta, age 63 years, is the Whole Time Director of the Company and she has been on the board since December 22, 2022. She has done is under graduate.

Financials of Vruddhi Engineering Works Limited IPO:

Particulars ( In Lakhs )
2021
2022
2023
Revenue from Operations 0.4 221 1,308
Other Income 0 0 2
Total Revenue 0.4 221 1,310
Purchases of Stock in Trade 0.9 160 973
Changes in inventory -0.3 -4 -39
Employees Benefit Expenses 0.2 8 121
Other Expenses 0.6 41 118
EBITDA -1 14 137
Depreciation & Amortisation 0 2 22
Finance Cost 0 0.1 14
EBIT -1 13 115
OPM (%) -200.00% 6.49% 10.46%
PBT -1 13 101
Tax 0 3 26
PAT -0.9 9 75
NPM (%) -200.00% 4.28% 5.75%
No.of Shares 25.23 25.23 25.23
EPS -0.03 0.37 2.98

Comparison With Peers:

Name of the Company Revenue (In Crore) PAT (In Crore) EPS ( in Rs) P/E CMP Mcap (In Crore)
Vruddhi Engineering Works Limited 13 0.8 2.98 23.5 70 18
Shiv Aum Steels Limited 496 14 10.53 39.0 312 424
SRU Steels Limited 16 0.7 0.58 16.3 9.68 12
* All the data is as per FY23.

Recommendation on Vruddhi Engineering Works Limited IPO:

Review and Recommendation of Vruddhi Engineering Works by team IZ is 4/10. 1. The Company stands at the forefront of innovation in the construction, real estate, and infrastructure sectors, specializing in the provision of mechanical splicing solutions. With a keen focus on designing, engineering, and supplying rebar couplers, their offerings extend beyond mere product supply. They deliver comprehensive mechanical splicing solutions encompassing design, manufacturing, testing, logistics, and onsite rebar threading services. Their rebar couplers serve as a modern alternative to traditional splicing methods, marking a significant advancement in construction practices. 2. Their Core Offerings i. Mechanical Splicing Solutions                   ii. Expansion into Trading 3. Market Presence They cater to construction contractors, real estate developers, and infrastructure companies, primarily within the domestic market. 4. Business Strategies i. Increase our market share                                                  ii. Focus on Advanced Products iii. Focus on consistently meeting quality standards        iv. Product Wise Bifurcation v. Industry wise revenue                                                          vi. Geography wise revenue 5. Competitive Edge Their competitive landscape is characterized by a mix of domestic manufacturers, ranging from small-scale entities to major players in both the mechanical splicing and steel products sectors. Despite this competition, their unwavering commitment to quality, client relationships, reputation, and competitive pricing enables them to maintain a strong market presence. 6. The Revenue has Increased from Rs.0.4 Lakhs in FY21 to Rs.13 Crore in FY23. 7. The EBITDA has Increased from (-1) Lakhs in FY21 to 1 Crore in FY23. 8. The PAT has Increased from (-0.9) Lakhs in FY21 to 75 Lakhs in FY23. 9. As per FY23, CFO/EBITDA is 1.00, As per FY24, EPS is 3.25, 10. Market Capitalization is 18 Crore & P/E is 21.53x based on FY24.

Lead Manager of Vruddhi Engineering Works Limited IPO:

  1. Fedex Securities Limited

Registrar of Vruddhi Engineering Works Limited IPO:

  1. Bigshare Services Private Limited

Company Address:

Vruddhi Engineering Works Limited Office No 603, 6th Floor, Cello - The Plaza, V P Road, Vile Parle West, Mumbai - 400056 Phone: +91- 022 26128915 Email: cs@vruddhicouplers.com Website: http://www.vruddhicouplers.com/

Discussion on Vruddhi Engineering Works Limited IPO:

Leave a Reply