Prostarm Info Systems IPO Review

Prostarm Info Systems is engaged in designing, manufacturing, assembling, sale, service and supply of Energy Storage Equipment and Power Conditioning Equipment (“Power Solution Products”) in India. Their manufactured Power Solution Products comprise of UPS system, Inverter system, Lift Inverter System, Solar Hybrid Inverter Systems, Lithium-Ion Battery Packs, Servo-Controlled Voltage Stabilizers (“SCVS”), Isolation Transformers and other Power solution products.

The Company have an experienced management team led by the Promoter, Director and Chief Executive Officer, Ram Agarwal who possess over sixteen (16) years of experience in the power backup solutions sector and we benefit significantly from his expertise. The Promoters continue to remain actively involved in the operations and continue to bring their vision, business acumen and leadership to the Company, which has been instrumental in sustaining their business operations and growth.

The Revenues from operations for the period ended on Dec 31, 2024, Fiscals ended 2024, 2023 and 2022 were ₹ 27,027.08 Lakh, ₹ 25,923.25 Lakh, ₹ 23,234.65 Lakh and ₹ 17,204.77 Lakh respectively. The EBITDA for the period ended on Dec 31, 2024, Fiscals ended 2024, 2023 and 2022 were ₹ 3,589.00 Lakh, ₹ 3,662.25 Lakh, ₹ 2,914.79 Lakh, and ₹ 1,657.79 Lakh, respectively. The Profit after Tax for the period ended on Dec 31, 2024, Fiscals ended 2024, 2023 and 2022 were ₹ 2,210.76 Lakh, ₹ 2,279.80 Lakh, ₹ 1,934.55 Lakh, and ₹ 1,087.05 Lakh respectively. This indicates a steady growth in financial performance.

The Company Key Performance Indicates the pre-issue EPS of ₹ 5.44 and post-issue EPS of ₹ 3.96 for FY24. The pre-issue P/E ratio is 19.30x, while the post-issue P/E ratio is 26.52x against the Industry P/E ratio is 149x. The company's ROCE for FY24 is 32.41%, ROE for FY24 is 32.09% and RoNW is 32.09%. The Annualised EPS based on the latest financial data is ₹ 6.94 and PE ratio is 15.11x. These metrics suggest that the IPO is fully priced.

The Grey Market Premium (GMP) of Prostarm Info Systems showing listing gains of 16.19 %.Given the company's financial performance and the valuation of the IPO, we recommend Investors to Apply to the Prostarm Info Systems 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.