Vilas Transcore IPO Review

Vilas Transcore Ltd. (VTL) manufactures and supplies components for the power distribution and transmission sector, catering primarily to transformer and power equipment manufacturers in India and abroad. Their products include electrical lamination cores and coils used in various types of transformers.

The company is led by Mr. Nilesh Jitubhai Patel, Chairman and Managing Director, who has about 30 years of experience in this field. Under his leadership, VTL has grown its operations and established itself in both Indian and global markets.

Financially, VTL's revenue increased from Rs. 132.65 crore in FY21 to Rs. 233 crore in FY22 further going to Rs. 282.61 Cr. in FY23 and landing at Rs. 235 crore for the 9MFY24. Similarly, EBITDA rose from Rs. 7.99 crore in FY21 to Rs. 25.47 crore in FY22 further going to Rs.28.51 Cr. in FY23 and then landing at Rs. 22.02 crore for the 9MFY24. This indicates steady financial performance.

For the IPO, VTL is issuing shares at a pre-issue EPS of Rs. 11.24 and a post-issue EPS of Rs. 8.26. The pre-issue P/E ratio is 13.08, while the post-issue P/E ratio is 17.79. The company's ROCE for FY23 is 22.64%, and ROE for FY23 is 18.33%. These metrics suggest that the IPO is fully priced.

The Grey Market Premium (GMP) indicates potential listing gains of 13.6% - 40%. Given the company's steady financial performance and the valuation of the IPO, we recommend to apply in the IPO for short-term listing gains or investment purposes.