EFFWA INFRA & RESEARCH IPO Review

Effwa Infra & Research Pvt. Ltd. (EIRPL) is an engineering powerhouse that offers cutting edge environmental solutions to various Industries and Municipal Authorities across the globe.

The company is promoted by Mr. Subhash Ramavtar Kamal and Dr. Varsha Subhash Kamal, who collectively possess more than a two decades of experience in the water and wastewater treatment industry, respectively.

Financially, Effwa Infra revenue increased from ₹10461.67 Lakhs in FY22 to ₹11541.36 Lakhs in FY23 and currently increased at ₹14551.46 Lakhs in FY24. Similarly, EBITDA increased from ₹710.40 Lakhs in FY22 to ₹910.90 Lakhs in FY23 and currently jumped to ₹2099.05 Lakhs in FY24. The PAT also increased from ₹459.99 Lakhs in FY22 to ₹513.04 Lakhs in FY23 and currently at ₹1,380.06 Lakhs in FY24. This indicates a steady financial performance.

For the Effwa Infra IPO, the company is issuing shares at a pre-issue EPS of ₹7.73 and a post-issue EPS of ₹5.96. The pre-issue P/E ratio is 10.60x, while the post-issue P/E ratio is 13.75x against the industry P/E ratio of 28.10x. The company's ROCE for FY24 is 22.89%, and ROE for FY24 is 24.48%. These metrics suggest that the IPO is fairly priced.

The Grey Market Premium (GMP) of Effwa Infra indicates potential listing gains of 105%-110%. Given the company's financial performance and the valuation of the IPO, we recommend Investors to Apply for listing gains or long term investment purposes.