H.M. Electro Mech IPO Review

H.M. ELECTRO MECH LIMITED, Ahmedabad Is An Infrastructure Company In The Field Of All Type Of Project Work Of Pumping Machineries For Water And Waste Water, Electrification Project Of Central And State Government, Corporations, Diesel Generating Sets Projects With Government, Nationalised Bank And Industries, Instrumentation Work, Civil Work Etc.

Prior to the incorporation of the Company, all the Promoters were associated with M/s. H M Engineers, a partnership firm engaged in the business of Electro Mechanical Contract for water supply & waste water treatment and pumping machinery installation works in pump house of Government Turnkey Projects. etc., which was later converted into their Company during the year 2018. Mr Mahendra Ramabhai Patel and Mr Dipak Padmakant Pandya having 20 years of extensive experience along with their management team are responsible for identifying the projects in which the company should participate and make sure that the selected projects are related to the business.

The Revenues from operations for the period ended on Sep 30, 2024, Fiscals ended 2024, 2023 and 2022 were ₹ 4,542.85 Lakh, ₹ 11,729.98 Lakh, ₹ 10,166.54 Lakh and ₹ 6,202.77 Lakh respectively. The EBITDA for the period ended on Sep 30, 2024, Fiscals ended 2024, 2023 and 2022 were ₹ 549.08 Lakh, ₹ 1,282.41 Lakh, ₹ 908.60 Lakh, and ₹ 367.90 Lakh, respectively. The Profit after Tax for the period ended on Sep 30, 2024, Fiscals ended 2024, 2023 and 2022 were ₹ 333.89 Lakh, ₹ 818.61 Lakh, ₹ 601.15 Lakh, and ₹ 258.00 Lakh respectively. This indicates a steady growth in financial performance.

The Company Key Performance Indicates the pre-issue EPS of ₹ 8.19 and post-issue EPS of ₹ 5.98 for FY24. The pre-issue P/E ratio is 9.16x, while the post-issue P/E ratio is 12.55x against the Industry P/E ratio is 15x. The company's ROCE for FY24 is 33.28%, ROE for FY24 is 29.06% and RoNW 25.37%. The Annualised EPS based on the latest financial data is ₹ 6.68 and PE ratio is 11.22x. These metrics suggest that the IPO is fairly priced.

The Grey Market Premium (GMP) of H.M. Electro Mech showing potential listing gains of 21.33 %. Given the company's financial performance and the valuation of the IPO, we recommend Investors to Apply to the H.M. Electro Mech 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. 

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.