V.L. Infraprojects IPO Review

V.L. Infraprojects Limited is engaged in executing water supply and sewerage infrastructure projects mainly involving the procurement of pipes and their laying, joining, and commissioning with backward integration including all allied civil engineering works like construction of civil work, pumping stations and installation of electro-mechanical equipment’s (pumping machinery) for distribution of water supply from the river to household. We also provide operations & maintenance services for water distribution pipelines.

The company is benefited from the extensive experience of their Promoters, Mr. Rajagopal Reddy Annam Reddy, Mrs. Mydhili Rajagopal Reddy and Mr. Nageswara Rao Repuri, having experience of more than 45 (Forty-Five) years.

Financially, V.L. Infraprojects revenue increased from ₹3,077.57 Lakhs in FY21 to ₹3,560.70 Lakhs in FY22 and further increased to ₹4,565.14 Lakhs in FY23 and currently jumped to ₹11,400.05 Lakhs in FY24. Similarly, EBITDA increased from ₹245.55 Lakhs in FY21 to ₹313.82 Lakhs in FY22 and further to ₹471.77 Lakhs in FY23 and currently increased to ₹1,090.40 Lakhs in FY24. The PAT also increased from ₹83.37 Lakhs in FY21 to ₹110.58 Lakhs in FY22 and further to ₹222.66 Lakhs in FY23 and currently increased to ₹614.01 Lakhs in FY24. This indicates a steady growth in financial performance.

For the V.L. Infraprojects IPO, the company is issuing shares at a pre-issue EPS of ₹5.43 and a post-issue EPS of ₹3.97. The pre-issue P/E ratio is 7.73x, while the post-issue P/E ratio is 10.76x against the industry P/E ratio of 13.92x. The company's ROCE for FY24 is 39.09%, and ROE for FY24 is 46.20%. These metrics suggest that the IPO is fairly priced.

The Grey Market Premium (GMP) of V.L. Infraprojects indicates potential listing gains of 60% to 70%. Given the company's financial performance and the valuation of the IPO, we recommend Investors to apply for Listing Gain or Long Term Investment Purposes.