Rajesh Power Services IPO Review

Rajesh Power Services is primarily operates in the power sector, offering engineering, procurement, and construction (EPC) services for both renewable (solar) and non-renewable energy projects. RPSL targets industries with high power consumption and is based in Ahmedabad, Gujarat, with the majority of its revenue generated within the state.

The Managing Director and one of the Promoters, Mr. Kurang Ramchandra Panchal has over 40 years of experience in the power sector industry. Mr. Rajendra Baldevbhai Patel, one of the Promoters and Whole-time Director, has over 33 years of experience in the power sector industry. 

Financially, Revenue for the quarter ended Sep 30, 2024 and Fiscals 2024, 2023 and 2022 were ₹ 31,785.09 lakhs, ₹ 29,506.07 lakhs, ₹ 21,117.57 lakhs and ₹ 14,936.84 lakhs, respectively. Their restated EBITDA for the quarter ended Sep 30, 2024 and Fiscals 2024, 2023 and 2022 were ₹ 4,205.04 lakhs, ₹4,404.68 lakhs, ₹1,800.47 lakhs and ₹1,35.09 lakhs, respectively. The restated profit after tax for the quarter ended Sep 30, 2024 and Fiscals 2024, 2023 and 2022 were ₹ 2,768.25 lakhs, ₹2,802.29 lakhs, ₹675.15 lakhs and ₹344.60 lakhs, respectively.

For the Rajesh Power Services IPO, the company is issuing shares at a pre-issue EPS of ₹17.01 and a post-issue EPS of ₹15.56. The pre-issue P/E ratio is 19.59x, while the post-issue P/E ratio is 21.53x. The company's ROCE for FY24 is 29.99% and RoE for FY24 is 36.41%. These metrics suggest that the IPO is fully priced.

The Grey Market Premium (GMP) of Rajesh Power Services showing potential listing gains of 20%. Given the company's financial performance and the valuation of the IPO, we recommend Investors to Avoid to the Rajesh Power Services 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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