Globe Civil Projects IPO Review

Globe Civil Projects is an integrated engineering, procurement and construction (“EPC”) company headquartered in New Delhi. They have undertaken projects in eleven (11) states of India, namely, Uttar Pradesh, Haryana, Delhi, Maharashtra, Andra Pradesh, Karnataka, Gujarat, Chhattisgarh, Rajasthan, Uttarakhand, and Himachal Pradesh. They are into execution and construction of infrastructure projects comprising of Transport and Logistics projects, Social and Commercial projects and Non- Infrastructure projects comprising of commercial offices and housing.

The Promoters and Directors, Ved Prakash Khurana, Nipun Khurana and Vipul Khurana, have an average of 19 years of experience in the construction industry and have contributed significantly to the growth and development. In addition, they have a strong senior management team, which has a significant collective experience in the construction industry and is responsible for the overall strategic planning and business development.

 The Revenues from operations for the period ended on Dec 31, 2024, Fiscals ended 2024, 2023 and 2022 were ₹  2,567.37 Million, ₹ 3,348.14 Million, ₹  2,351.69 Million and ₹ 2,867.84 Million respectively. The EBITDA for the period ended on Dec 31, 2024, Fiscals ended 2024, 2023 and 2022 were ₹  413.78 Million, ₹ 473.05 Million, ₹  226.22 Million, and ₹ 239.84 Million, respectively. The Profit after Tax for the period ended on Dec 31, 2024, Fiscals ended 2024, 2023 and 2022 were ₹  177.89 Million, ₹ 153.78 Million, ₹ 48.51 Million, and ₹ 52.01 Million respectively. This indicates a steady growth in financial performance. 

The Company Key Performance Indicates the pre-issue EPS of ₹ 3.58 and post-issue EPS of ₹ 2.58 for FY24. The pre-issue P/E ratio is 19.83x, while the post-issue P/E ratio is 27.57x against the Industry P/E ratio is 20x. The company's ROCE for FY24 is 23.07%, ROE for FY24 is 21.95% and RoNW is 19.80%. The Annulaised EPS is ₹ 3.97 and annualised P/E Ratio is 17.88x. These metrics suggest that the IPO is fully priced.

The Grey Market Premium (GMP) of Globe Civil Projects showing listing gains of 12.67 %.Given the company's financial performance and the valuation of the IPO, we recommend Risky Investors to Apply to the Globe Civil Projects  Limited IPO for Listing gain.

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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.