Aprameya Engineering IPO Review

Aprameya Engineering Limited is engaged in the business of installation, set up & maintenance of Intensive Care Units (“ICU”), Neonatal Intensive Care Units (“NICU”), Pediatric Intensive Care Units (“PICU”), Operation Theatre, dialysis centres and prefabricated structure ward (hereinafter referred to as “Healthcare Infrastructure projects”) in the hospitals and medical care centres on turnkey basis along with supply of high value healthcare equipment and diagnostic equipment to private hospitals, Government hospitals and medical practitioners.

The Promoters, Saurabh Kishorbhai Bhatt & Chetan Mohan Joshi, have an experience of over 20 years in the field of dealing in high-value medical equipment.

Financially, Aprameya Engineering revenue decreased from ₹20,026.16 Lakhs in FY22 to ₹7,833.35 Lakhs in FY23 and currently at ₹6562.22 Lakhs in FY24. Similarly, EBITDA decreased from ₹2,475.41 Lakhs in FY22 to ₹874.63 Lakhs in FY23 and currently at ₹593.07 Lakhs in FY24. The PAT also decreased from ₹1,661.91 Lakhs in FY22 to ₹536.92 Lakhs in FY23 and currently at ₹345.67 Lakhs in FY24. This does not indicate a steady financial performance.

For the Aprameya Engineering IPO, the company is issuing shares at a pre-issue EPS of ₹2.47 and a post-issue EPS of ₹1.81. The pre-issue P/E ratio is 23.48x, while the post-issue P/E ratio is 32.04x against the industry P/E ratio of x. The company's ROCE for FY24 is 9.60% and ROE for FY24 is 15.97%. These metrics suggest that the IPO is fairly priced.

The Grey Market Premium (GMP) of Aprameya Engineering indicates potential listing gains of 0%. Given the company's financial performance and the valuation of the IPO, we recommend Investors to avoid the Aprameya Engineering IPO for listing gain or long term investment purposes.