Popular Foundations IPO Review

Popular Foundations Limited, with over 25 years of experience, specializes in Engineering and Construction Activities, providing comprehensive end-to-end solutions in the construction sector. The company is dedicated to building practices catering to various verticals such as factories, educational institutions, commercial, and residential projects.

The Promoter Mr. Ananthanarayanan Sankaralingam Venkatesh and Mrs. Vinita Venkatesh led the company with their vision. They are having an adequate experience in the line of the business undertaken by the Company and look after the strategic as well as day to day business operations.

Financially, the Company's revenues from operations for the Fiscals 2024, 2023 and 2022 were ₹5,191.00 lakhs, ₹4,866.89 lakhs and ₹2,630.17 lakhs respectively. The EBITDA for the Fiscals 2024, 2023 and 2022 were ₹710.04 lakhs, ₹323.46 lakhs and ₹265.22 lakhs respectively. The Profit after Tax for the Fiscals 2024, 2023 and 2022 were ₹347.76 lakhs, ₹119.61 lakhs and ₹48.08 lakhs respectively.

For the Popular Foundations IPO, the company is issuing shares at a pre-issue EPS of ₹2.41 and a post-issue EPS of ₹1.70. The pre-issue P/E ratio is 15.35x, while the post-issue P/E ratio is 21.76x against the Industre P/E ratio is 36.05x. The company's ROCE for FY24 is 22.77% and RoAE for FY24 is 23.17%. These metrics suggest that the IPO is fairly priced.

The Grey Market Premium (GMP) of Popular Foundations listing gains of 15% - 25%. Given the company's financial performance and the valuation of the IPO, we recommend Risky Investors to Apply to the Popular Foundations 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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