Subscribe for Ajax Engineering Ltd IPO; Geojit Financial Services

Geojit Financial Services, Ajax Engineering Ltd

Ajax Engineering Ltd. (AJAX), established in 1992, is a leading manufacturer of concrete equipment with a wide range of products and solutions, including SelfLoading Concrete Mixers (SLCMs), batching plants, transit mixers, boom pumps, slip-form pavers, and 3D concrete printers. AJAX has developed ~141 concrete equipment variants for the value chain and sold over 29,800 units in India in the last ten years to over 18,900 customers. Ajax Engineering operates four assembling and manufacturing facilities in Karnataka. The market for concreting equipment in India is projected to grow at a CAGR of ~11% (in volume terms) and ~24% (in value terms) till FY2029,representing an opportunity of ~INR 191 billion (US$ 2.3 billion). (Source: Redseer Report).

Valuation and Outlook

Given its dominant market share, bright growth prospects, strong dealer network, asset-light business model, nil debt and favourable industry outlook, we recommend to subscribe on a long-term basis.