Vdeal System IPO Review

Vdeal System Ltd. is the complete solution provider in the field of Electrical Panels, Industrial Automation, Process Instrumentation & Industrial IoT (I-4). They have more than 20 years of experience in providing automation solutions to many valued customers in India.

The Company is guided by their Promoters Mr. Dhiraj Kochar and Mrs. Tapaswini Panda who have more than two (2) decades of experience in the industry.

Financially, Vdeal System revenue increased from ₹1,623.96 Lakhs in FY22 to ₹2,075.41 Lakhs in FY23 and currently at ₹2,625.08 Lakhs in FY24. Similarly, EBITDA also increased from ₹139.65 Lakhs in FY22 to ₹239.92 Lakhs in FY23 and currently at ₹536.03 Lakhs in FY24. The PAT is somewhat stable from ₹23.10 Lakhs in FY22 to ₹110.09 Lakhs in FY23 and currently at ₹311.38 Lakhs in FY24. This indicates a steady financial performance.

For the Vdeal System IPO, the company is issuing shares at a pre-issue EPS of ₹9.50 and a post-issue EPS of ₹6.36. The pre-issue P/E ratio is 11.78x, while the post-issue P/E ratio is 17.61x against the industry P/E ratio is 68.06x. The company's ROCE for FY24 is 32.83% and ROE for FY24 is 49.52%. These metrics suggest that the IPO is fairly priced.

The Grey Market Premium (GMP) of Vdeal System potential listing gains of 70% - 75%. Given the company's financial performance and the valuation of the IPO, we recommend Investors to Apply to the Vdeal System Limited IPO for Listing gain or long term investment purposes.