Chamunda Electricals IPO Review

Chamunda Electricals are engaged in the business of providing specialized services of testing and commissioning of electrical substation up to 220 KV (kilovolt) and solar power generation park of 1.5 MW (MegaWatts) capacity, operation and maintenance of substation up to 66 KV (kilovolt) and within our scope, it includes erection of EHV class equipments, structures and equipments, earthing, control cable works and other associated works for substations up to 220 KV (D Class). 

The Company is led by Promoters, namely, MR. CHIRAGKUMAR NATVARLAL PATEL has an experience of around 10 years in the business of the company and he didn’t have experience other than company business, MR. NATVARBHAI K RATHOD has an experience of around 30 years in the Gujarat Electricity Board as executive engineer and 10 years in the business of the company and MRS. PURNIKABEN C PATEL is having around 4 years of experience in administration activities as she plays the same role in one of the group company (M/s. Chamunda Electro Tech Private Limited).

The Revenues from operations for the period ended on Dec 31, 2024, Fiscals ended 2024, 2023 and 2022 were ₹ 1,842.57 Lakh, ₹ 2,006.69 Lakh, ₹ 1,401.39 Lakh and ₹ 1,132.25 Lakh respectively. The EBITDA for the period ended on Dec 31, 2024, Fiscals ended 2024, 2023 and 2022 were ₹ 501.17 Lakh, ₹ 476.93 Lakh, ₹ 183.78 Lakh, and ₹ 55.45 Lakh, respectively. The Profit after Tax for the period ended on Dec 31, 2024, Fiscals ended 2024, 2023 and 2022 were ₹ 281.48 Lakh, ₹ 243.63 Lakh, ₹ 31.21 Lakh, and ₹ -51.28 Lakh respectively. This indicates a steady growth in financial performance.

The Company Key Performance Indicates the pre-issue EPS of ₹ 3.69 and post-issue EPS of ₹ 2.21 for FY24. The pre-issue P/E ratio is 13.55x, while the post-issue P/E ratio is 22.58x. The company's ROCE for FY24 is 36.82%, ROE for FY24 is 52.43% and RoNW 41.54%. The Annualised EPS based on the latest financial data is ₹ 4.73 and PE ratio is 10.56x. These metrics suggest that the IPO is fairly priced.

The Grey Market Premium (GMP) of Chamunda Electricals showing potential listing gains of 16.00 %. Given the company's financial performance and the valuation of the IPO, we recommend Risky Investors to Apply to the Chamunda Electricals Limited IPO for Listing gain.

Disclaimer: The information provided in this IPO review is for educational and informational purposes only and should not be construed as financial advice or an offer to buy or sell securities. The review must not be used as a singular basis of any investment decision. The views herein are of a general nature and do not consider the risk appetite or the particular circumstances of an individual investor; readers are requested to take professional advice before investing. Nothing in this document should be construed as investment advice. The content is based on publicly available information and market perceptions as of the date of publication and is subject to change. Neither the author nor the website is responsible for any losses or damages arising from the use of this information. 

About the Author
 CA Abhay Kumar (Also known as  CA Abhay Varn) is a qualified Chartered Accountant by profession and cleared CA at age 21. He is a SEBI Registered Research Analyst with Registration Number - INH300008465. He Possesses 8+ years of experience in the Stock Market Field and has also worked in Big CA firms during the training period. He is good at Technical analysis and Fundamental Analysis and uses both Technical and Fundamental analysis along with five other important factors that affect the movement of the Market namely Global Market Analysis, Upcoming Event Analysis, Institutional Money Analysis, Derivative Data Analysis, and Emotions and Sentiment of Traders and Investors in his Framework called - Technical Fundamental GUIDE to find the winning Trades.