Suntech Infra Solutions IPO Review

Suntech Infra Solutions is engaged into the business of Civil Construction Services such as Civil Foundation Works, Civil Structural Works; on direct contracting and sub-contracting basis and Renting of Construction Equipment. They have served both public and private sector clients, delivering solutions across industries such as Power, Oil & Gas, Steel, Cement, Renewable Energy, Refineries, Petrochemical Plants, Fertilizer Plants, and Process Plants.

The Company’s growth can be attributable to the entire management team, led by Mr. Gaurav Gupta, he is currently the Chairman of the Board, Managing Director and Promoter of the Company. His technical expertise and extensive experience of more than 15 years has helped the company scale new heights, at present, he is responsible for the overall management, day to day affairs and is the guiding force behind the strategic decisions of the Company.

The Revenues from operations for the period ended on Dec 31, 2024, Fiscals ended 2024, 2023 and 2022 were ₹  9,124.77 Lakh, ₹ 9,625.45 Lakh, ₹  8,619.37 Lakh and ₹ 7,231.76 Lakh respectively. The EBITDA for the period ended on Dec 31, 2024, Fiscals ended 2024, 2023 and 2022 were ₹  2,996.07 Lakh, ₹ 2,747.31 Lakh, ₹  2,058.94 Lakh, and ₹ 1,358.95 Lakh, respectively. The Profit after Tax for the period ended on Dec 31, 2024, Fiscals ended 2024, 2023 and 2022 were ₹  1,027.73 Lakh, ₹ 924.52 Lakh, ₹  575.60 Lakh, and ₹ 302.45 Lakh respectively. This indicates a steady growth in financial performance.

The Company Key Performance Indicates the pre-issue EPS of ₹ 6.21 and post-issue EPS of ₹ 4.50 for FY24. The pre-issue P/E ratio is 13.85x, while the post-issue P/E ratio is 19.12x against the Industry P/E ratio is 43x. The company's ROCE for FY24 is 17.28%, ROE for FY24 is 28.50% and RoNW is 23.97%. The Annulaised EPS is ₹ 6.67 and annualised P/E Ratio is 12.90x. These metrics suggest that the IPO is fairly priced.

The Grey Market Premium (GMP) of Suntech Infra Solutions showing listing gains of 19.76 %.Given the company's financial performance and the valuation of the IPO, we recommend Risky Investors to Apply to the Suntech Infra Solutions 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.