Subscribe for Ajax Engineering Ltd IPO; KR Choksey

KR Choksey, Ajax Engineering Ltd

Ajax Engineering is a leading manufacturer of concrete equipment with a wide range of products and solutions, including Self-Loading Concrete Mixers (SLCMs), batching plants, transit mixers, boom pumps, slip-form pavers, and 3D concrete printers. By September 30, 2024, the company had developed 141 equipment variants and sold over 29,800 units in India in the last ten years. It operates four manufacturing facilities in Karnataka, including the Obadenahalli plant, which spans 39,660 sq. meters and is among the largest SLCM facilities globally. Ajax is the first Indian company to develop an in-house slipform paver (2019) and commercialize a 3D concrete printing machine (2023). The company played a significant role in India’s concrete industry, with 12% of the nation’s concrete production in FY24 conducted using its SLCMs. Ajax Engineering holds an approximate market share of 77% in the SCLM segment for the six months ending September 30, 2024.

Valuation and Outlook

AEL is reasonably priced compared to its industry peers, backed by solid financial performance with Revenue/PAT CAGR of 51%/84% from FY22 to FY24. With its dominant market share, growth trajectory, and favorable industry outlook, the company presents a compelling investment opportunity. Hence, We assign “SUBSCRIBE” rating.