DEE DEVELOPMENT ENGINEERS IPO Review

DEE Development Engineers Limited specialize in handling complex metals such as varying grades of carbon steel, stainless steel, super duplex stainless steel, alloy steel and other materials including Inconel and Hastelloy in our manufacturing processes.

DEE Development is backed by strong promoters named, KRISHAN LALIT BANSAL, ASHIMA BANSAL and DDE PIPING COMPONENTS PRIVATE LIMITED, who has over 35 years of experience in the process piping solutions industry. 

Financially, DEE Development revenue decreased from ₹4,952.17 Millions in FY21 to ₹4,609.16 Millions in FY22 but revenue jumped to ₹5,954.95 Millions in FY23 and currently at ₹5,455.54 Millions for 9MFY24. Similarly, EBITDA rose from ₹536.84 Millions in FY21 to ₹646.07 Millions in FY22 and further to ₹691.76 Millions in FY23 and currently at ₹679.44 Millions for the 9MFY24. PAT plunged from ₹142.05 Millions in FY21 to ₹81.97 Millions in FY22 but risen in FY23 to ₹129.72 Millions and showing a positive response in 9MFY24 of ₹143.37 Millions. This indicates steady financial performance.

For the DEE Development Engineers IPO, the company is issuing shares at a pre-issue EPS of ₹2.69 and a post-issue EPS of ₹2.07. The pre-issue P/E ratio is 75.46x, while the post-issue P/E ratio is 98.06x against the industry P/E ratio of 39x. The company's ROCE for 9MFY24 is 3.91%, and ROE for 9MFY24 is 2.97%. These metrics suggest that the IPO is fairly priced.

The Grey Market Premium (GMP) indicates potential listing gains of 15%- 25%. Given the company's financial performance and the valuation of the IPO, we recommend Risky Investors to apply in the IPO for listing gains and long term Investment purposes.