Desco Infratech IPO Review

Desco Infratech is a force to be reckoned with in India's infrastructure development. They're not just engineers; they're a team of passionate innovators tackling complex challenges across City Gas Distribution, Renewable Energy, Water, and Power sectors. Their expertise spans from laying MDPE and steel pipelines to constructing vital water infrastructure and robust power distribution networks.

The Company attribute their growth of multiple projects implementation to the able leadership and guidance of Mr. Pankaj Pruthu Desai (Promoter, Chairman and Managing Director), Mr. Malhar P Desai (Promoter, Whole Time Director), Mr. Samarth Pankaj Desai (Promoter, Executive Director) and a dedicated qualified team of professionals of the Company. Mr. Pankaj Pruthu Desai has an overall entrepreneurial experience of more than 18 years in city gas distribution & pipeline industry.

The Revenues from operations for the period ended on Sep 30, 2024, Fiscals ended 2024, 2023 and 2022 were ₹ 2,274.50 Lakh, ₹ 2,949.47 Lakh, ₹ 2,928.21 Lakh and ₹ 1,991.51 Lakh respectively. The EBITDA for the period ended on Sep 30, 2024, Fiscals ended 2024, 2023 and 2022 were ₹ 496.77 Lakh, ₹ 566.07 Lakh, ₹ 225.32 Lakh, and ₹ 172.08 Lakh, respectively. The Profit after Tax for the period ended on Sep 30, 2024, Fiscals ended 2024, 2023 and 2022 were ₹ 338.07 Lakh, ₹ 345.80 Lakh, ₹ 122.72 Lakh, and ₹ 82.51 Lakh respectively. This indicates a steady growth in financial performance.

The Company Key Performance Indicates the pre-issue EPS of ₹ 6.95 and post-issue EPS of ₹ 4.50 for FY24. The pre-issue P/E ratio is 21.58x, while the post-issue P/E ratio is 33.30x against the Industry P/E ratio is 13x. The company's ROCE for FY24 is 39.52%, ROE for FY24 is 40.61% and RoNW 28.83%. The Annualised EPS based on the latest financial data is ₹ 12.06 and PE ratio is 12.43x. These metrics suggest that the IPO is fully priced.

The Grey Market Premium (GMP) of Desco Infratech showing listing gains of 0.00 %. Given the company's financial performance and the valuation of the IPO, we recommend Investors to Avoid to the Desco Infratech 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. 1.“Registration granted by SEBI, membership of a SEBI recognized supervisory body (if any) and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.” 2. “Investment in securities market are subject to market risks. Read all the related documents carefully before investing.” 3. To read the Disclaimers, Disclosures, Investor Charter, Investor Complaints please visit our website abhayvarn.com

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.