Parth Electricals & Engineering IPO Review

Parth Electricals has been delivering quality products and services in the power sector since 2005. Starting as a service provider, they became a private limited company in 2007 and established a state-of-the-art manufacturing facility in 2009, equipped with advanced Japanese machinery and a modern powder coating plant by 2010. With a strong team, robust infrastructure, and seamless coordination, they have consistently achieved key milestones, contributing to major installation, commissioning, and electrification projects across India.

The company is led by Promoters, JIGNESHKUMAR GORDHANBHAI PATEL, who has an experience of approx 20 years (2005-2025) with the business of the Company (including approx. 2 years as the proprietor) and JEMINI JIGNESHKUMAR PATEL, her experience at the Company is in the domain of management of the manufacturing and factory operations. She has worked at all levels of the organization, starting with General Administration, Commercial Offers, Accounts, Project Management, before taking up the operations side of the business since the last 5 years.

The Revenues from operations for the Fiscals ended on Mar 31, 2025, 2024 and 2023 were ₹ 17,620.12 Lakh, ₹ 8,716.50 Lakh and ₹ 6,570.29 Lakh. The EBITDA for the Fiscals ended on Mar 31, 2025, 2024 and 2023 were ₹ 1,906.22 Lakh, ₹ 942.70 Lakh and ₹ 447.66 Lakh. The Profit after Tax for the Fiscals ended on Mar 31, 2025, 2024 and 2023 were were ₹ 1,011.68 Lakh, ₹ 461.02 Lakh and ₹ 244.77 Lakh respectively. This indicates a steady growth in financial performance.

The Company Key Performance Indicates the pre-issue EPS of ₹ 10.27 and post-issue EPS of ₹ 7.40 for FY24. The pre-issue P/E ratio is 16.55x, while the post-issue P/E ratio is 22.97x against the Industry P/E ratio is 26x. The company's ROCE for FY24 is 23.38%, ROE for FY24 is 24.92% and RoNW is 24.92%. These metrics suggest that the IPO is fairly priced.

The Grey Market Premium (GMP) of Parth Electricals & Engineering showing listing gains of 17.56 %.Given the company's financial performance and the valuation of the IPO, we recommend Risky Investors to Apply to the Parth Electricals & Engineering 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.