Diffusion Engineers is engaged in the business of providing engineering solutions to customers both in domestic and international market. The Company has been in existence for over four decades and provides a wide range of products and services including manufacture of special welding consumables, wear plates and heavy engineering equipment for core industries and provide special and customized repairs and reconditioning services of heavy machinery and equipment.
The management team, led by Chairman and Managing Director Prashant Garg with 20 years of experience and a salary of ₹24 million p.a., includes Non-Executive Director Dr. Nitin Garg, a neurosurgeon; Non-Executive Director Chitra Garg, with a long history in corporate governance; Independent Directors Anil Trigunayat, a former ambassador, Sherry Oommen, a legal and taxation expert, and Deepali Bendre, a seasoned Chartered Accountant, all contributing their diverse expertise to drive the company's growth.
Financially, Revenue in Fiscal 2024, Fiscal 2023 and Fiscal 2022 was ₹2855.61 Million, ₹2586.72 Million and ₹2087.47 Million respectively. The EBITDA for the Fiscals 2024, 2023 and 2022 were ₹462.84 Million, ₹316.73 Million and ₹266.46 Million respectively. The Profit after Tax for the Fiscals 2024, 2023 and 2022 were ₹308.03 Million, ₹221.45 Million and ₹170.46 Million respectively. This indicates steady growth in financial performance.
For the Diffusion Engineers IPO, the company is issuing shares at a pre-issue EPS of ₹10.94 and a post-issue EPS of ₹8.23. The pre-issue P/E ratio is 15.35x, while the post-issue P/E ratio is 20.41x against Industry PE of 33.9x. The company's ROCE for FY24 is 20.63% and ROE for FY24 is 18.52%. These metrics suggest that the IPO is fairly priced.
The Grey Market Premium (GMP) of Diffusion Engineers showing potential listing gains of 37%. Given the company's financial performance and the valuation of the IPO, we recommend Investors to Apply to the Diffusion Engineers Limited IPO for Listing gain or long term 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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