S A Tech Software India IPO Review

At SA Technologies Center of Excellence, they offer scalable IT outsourcing solutions and Global Development Centers (GDCs) that enhance business agility and efficiency. Their services range from individual support to large-scale enterprise transformations, providing the flexibility to scale from 1 to 1000 professionals as needed.

Mr. Manoj Joshi and Ms. Priyanka Joshi; are some diligent promoters of S A Tech who have more than two decades of experience in Information Technology.

Financially, SA Tech revenue increased from ₹4,154.37 Lakhs in FY22 to ₹5,673.05 Lakhs in FY23 and currently increased at ₹7,238.12 Lakhs in FY24. Similarly, EBITDA also increased from ₹-399.90 Lakhs in FY22 to ₹520.10 Lakhs in FY23 and currently at ₹875.32 Lakhs in FY24. The PAT also increased from ₹-548.25 Lakhs in FY22 to ₹108.59 Lakhs in FY23 and currently at ₹368.86 Lakhs in FY24. This indicates a steady financial performance.

For the SA Tech IPO, the company is issuing shares at a pre-issue EPS of ₹4.02 and a post-issue EPS of ₹2.82. The pre-issue P/E ratio is 14.67x, while the post-issue P/E ratio is 20.92x against the industry P/E ratio of 34.29x. The company's ROCE for FY24 is 32.24% and ROE for FY24 is 38.05%. These metrics suggest that the IPO is fairly priced.

The Grey Market Premium (GMP) of SA Tech indicates potential listing gains of 85% to 90%. Given the company's financial performance and the valuation of the IPO, we recommend Investors to apply in S A Tech Software India Limited IPO for Listing gain or long term investment purposes.