Transrail Lighting IPO Review

Transrail Lighting is one of the leading Indian engineering, procurement and construction companies with integrated manufacturing facilities for lattice structures, conductors, and monopoles and with over four decades of experience in providing comprehensive solutions on a turnkey basis globally. They have a track record of more than four decades and have been a trusted and longstanding partner in the sector. Their business is divided into four verticals, namely (i) power transmission and distribution (including substations), (ii) civil construction, (iii) poles and lighting, and (iv) railways.

The Company is promoted by strong and experienced Promoters, namely, AJANMA HOLDINGS PRIVATE LIMITED, DIGAMBAR CHUNNILAL BAGDE AND SANJAY KUMAR VERMA.

The Revenues from operations for the period ended on June 30, 2024, Fiscals ended 2024, 2023 and 2022 were ₹ 9,297.04 Million, ₹ 41,299.99 Million, ₹ 31,720.34 Million and ₹ 23,571.99 Million respectively. The EBITDA for the period ended on June 30, 2024, Fiscals ended 2024, 2023 and 2022 were ₹ 1,340.32 Million, ₹ 5,310.33 Million, ₹ 3,138.14 Million, and ₹ 2,128.52 Million, respectively. The Profit after Tax for the period ended on June 30, 2024, Fiscals ended 2024, 2023 and 2022  were ₹ 517.44 Million, ₹ 2,332.09 Million, ₹ 1,075.68 Million, and ₹ 647.07 Million respectively.

For the Transrail Lighting IPO, the company is issuing shares at a pre-issue EPS of ₹19.59 and a post-issue EPS of ₹17.37. The pre-issue P/E ratio is 22.05x, while the post-issue P/E ratio is 24.87x against the Industry P/E ratio is 55.5x. The company's ROCE for FY24 is 24.33% and RoE for FY24 is 24.41%. 

The Grey Market Premium (GMP) of Transrail Lighting IPO showing potential listing gains of 40.73%. Given the company's financial performance and the valuation of the IPO, we recommend Risky Investors to Apply to the Transrail Lighting Limited IPO for Listing gain or long term investment purposes.

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