Readymix Construction Machinery IPO Review

Readymix Construction Machinery Limited (RMX) is a multidisciplinary manufacturer and supplier in the construction equipment sector, established in Pune in 2008. Their extensive range includes construction machinery and equipment, as well as tailor-made products designed to meet the diverse demands of the construction industry.

Our Company is managed by the Promoters, Anand Suresh Watve, Atul Jagannath Kulkarni, Prashant Balasaheb Kanikdale and Shubhangi Rohit Deo. Anand Suresh Watve is responsible for the overall business planning & development including Production & Operations, quality control, legal & compliance etc. and has an overall experience of 30 years. Atul Jagannath Kulkarni, is responsible for Human Resource, Design and Development along with Sales and marketing and customer relationship management. He ventured into this business year 2009 and since then, he has gained a good knowledge and overall experience of 28 years. Prashant Balasaheb Kanikdale, is responsible for Purchase & Procurement, vendor management, Cost Management, inventory control and dispatch planning. He is engaged in the same business and industry since year 2009 and has an overall experience of 29 years. Shubhangi Rohit Deo, who is also the CFO of the company, looks after all the accounts and finance activities of the Company and has an overall experience of 15 years.

The Revenues from operations for the period ended on Dec 31, 2024, Fiscals ended 2024, 2023 and 2022 were ₹ 3,550.02 Lakh, ₹ 6,984.48 Lakh, ₹ 5,500.94 Lakh and ₹ 4,783.43 Lakh respectively. The EBITDA for the period ended on Dec 31, 2024, Fiscals ended 2024, 2023 and 2022 were ₹ 311.74 Lakh, ₹ 1,384.29 Lakh, ₹ 494.32 Lakh, and ₹ 252.74 Lakh, respectively. The Profit after Tax for the period ended on Dec 31, 2024, Fiscals ended 2024, 2023 and 2022 were ₹ 104.41 Lakh, ₹ 928.48 Lakh, ₹ 277.95 Lakh, and ₹ 132.77 Lakh respectively. This indicates a steady growth in financial performance.

The Company Key Performance Indicates the pre-issue EPS of ₹ 11.76 and post-issue EPS of ₹ 8.47 for FY24. The pre-issue P/E ratio is 10.46x, while the post-issue P/E ratio is 14.52x. The company's ROCE for FY24 is 48.96%, ROE for FY24 is 65.90% and RoNW 49.51%. The Annualised EPS based on the latest financial data is ₹ 1.76 and PE ratio is 69.88x. These metrics suggest that the IPO is fully priced.

The Grey Market Premium (GMP) of Readymix Construction Machinery showing potential listing gains of 0.00 %. Given the company's financial performance and the valuation of the IPO, we recommend Investors to Avoid to the Readymix Construction Machinery 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.