Tunwal E-Motors IPO Review

TUNWAL E-MOTORS LIMITED is a 100% electric two-wheeler manufacturing company established in October 2013 with a mission to create two-wheeler that can ride along with us to the future. They Tunwal E-Bike, can proudly say that we have India’s smartest, economical and premium designed electric two-wheelers.

Jhumarmal Pannaram Tunwal is the Promoter, Chairman and Managing Director of the Company. He has over twelwe (12) years of experience in electronic component industry and more than 7 years in EV industry.

Financially, Tunwal E-Motors revenue stable from ₹7,566.42 Lakhs in FY22 to ₹7,655.74 Lakhs in FY23 and currently increased to ₹10,553.69 Lakhs in FY24. Similarly, EBITDA increased from ₹433.06 Lakhs in FY22 to ₹660.72 Lakhs in FY23 and currently increased at ₹1,783.15 Lakhs in FY24. The PAT also increased from ₹233.94 Lakhs in FY22 to ₹372.48 Lakhs in FY23 and currently at ₹1,181.17 Lakhs in FY24. This indicates a steady growth in financial performance.

For the Tunwal E-Motors IPO, the company is issuing shares at a pre-issue EPS of ₹2.85 and a post-issue EPS of ₹2.13. The pre-issue P/E ratio is 20.70x, while the post-issue P/E ratio is 27.69x against the industry P/E ratio of 92.14x. The company's ROCE for FY24 is 59.38%, and ROE for FY24 is 57.53%. These metrics suggest that the IPO is fairly priced.

The Grey Market Premium (GMP) of Tunwal E-Motors indicates potential listing gains of 40% - 45% . Given the company's financial performance and the valuation of the IPO, we recommend Risk Taking Investors to apply for Listing gain or Long Term Investment Purposes.