Deepak Builders & Engineers India IPO Review

Deepak Builders & Engineers India is an integrated engineering and construction company, specializing in the execution and construction of administrative & institutional buildings, hospitals and medical colleges, industrial buildings, historical memorial complexes, stadium and sports complexes, residential complexes, various development & other construction activities, flyover, rail under bridge, rail over bridges, approach roads and development of railway stations etc. The company focuses on assisting and scaling large-scale projects in the Govt. and Private Sector.

Deepak Builders Partnership Firm was constituted by the Promoter, Deepak Kumar Singal on April 1, 1990, he has been in the construction business for over 30 years and has also been instrumental in the growth of the Company. Since 1990, Deepak Kumar Singal has contributed towards the completion of over sixty (60) Construction & Infrastructure Projects (inclusive of projects completed in Erstwhile Firm as well as our Company), which includes nine (9) EPC projects and fifty-one (51) projects on an item-rate/percentage rate basis.

Financially, Revenue in Fiscal 2024, Fiscal 2023 and Fiscal 2022 was ₹5,167.42 Million, ₹4,354.60 Million and ₹3,649.87 Million, respectively. The EBITDA for the Fiscal 2024, Fiscal 2023 and Fiscal 2022 were ₹1,175.39 Million, ₹528.93 Million and ₹438.71 Million respectively. The Profit after Tax for the Fiscal 2024, Fiscal 2023 and Fiscal 2022 were ₹604.10 Million, ₹213.95 Million and ₹176.64 Million respectively. This indicates steady growth in financial performance.

For the Deepak Builders & Engineers IPO, the company is issuing shares at a pre-issue EPS of ₹16.84 and a post-issue EPS of ₹12.96. The pre-issue P/E ratio is 12.05x, while the post-issue P/E ratio is 15.66x against Industry P/E ratio is 25.03x. The company's ROCE for FY24 is 41.72% and RoE for FY24 is 39.39%. These metrics suggest that the IPO is fairly priced.

The Grey Market Premium (GMP) of Deepak Builders & Engineers India showing potential listing gains of 20%. Given the company's financial performance and the valuation of the IPO, we recommend Risky Investors to Apply to the Deepak Builders & Engineers India Limited IPO for Listing gain, but long term investors should avoid the IPO for investment purposes.

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.
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