Smarten Power Systems IPO Review

Smarten Power Systems is engaged into designing and assembling of power back-up and advanced solar power products such as Home UPS systems, solar inverters, solar power conditioning units (PCUs), solar charge controllers. They are also engaged in the trading of solar panels and batteries. They sell their products through our distributors within India. They also export their products except solar panels outside India. 

The Company is promoted by four individual Promoters namely Arun Bhardwaj, Rajnish Sharma, Ravi Dutt, Tirath Singh Khaira with a motive of providing efficient and low-cost power solutions by assembling and trading various products such as Home UPS systems, solar inverters, solar power conditioning units (PCUs), solar charge controllers, solar panels and batteries and they have an average experience of more than two decades in the power-backup industry.

The Revenues from operations for the Fiscals ended on Mar 31, 2025, 2024 and 2023 were ₹ 20,319.67 Lakh, ₹ 19,873.20 Lakh and ₹ 18,606.28 Lakh. The EBITDA for the Fiscals ended on Mar 31, 2025, 2024 and 2023 were ₹ 1,836.79 Lakh, ₹ 1,708.08 Lakh and ₹ 798.89 Lakh. The Profit after Tax for the Fiscals ended on Mar 31, 2025, 2024 and 2023 were were ₹ 1,277.04 Lakh, ₹ 1,129.00 Lakh and ₹ 515.66 Lakh respectively. This indicates a steady growth in financial performance.

The Company Key Performance Indicates the pre-issue EPS of ₹ 8.51 and post-issue EPS of ₹ 6.72 for FY24. The pre-issue P/E ratio is 11.75x, while the post-issue P/E ratio is 14.88x against the Industry P/E ratio is 42x. The company's ROCE for FY24 is 32.58%, ROE for FY24 is 39.72% and RoNW is 33.14%. These metrics suggest that the IPO is fairly priced.

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