Subscribe for Atlanta Electricals Ltd IPO; Ajcon Global

Ajcon Global, Atlanta Electricals Ltd

Atlanta Electricals Ltd. (AEL) is one of India's largest manufacturers of power, auto, and inverter duty transformers, based on manufacturing volume as of Fiscal 2025. Prior to the acquisition of BTW-Atlanta Transformers India Private Limited and the commissioning of its Vadod Unit, they were one of the few companies in India that manufactured transformers with capacities up to and including 200 Mega Volt-Amp ("MVA") and voltages of 220 kilovolts ("kV"). Following these improvements, it has expanded its production capabilities and are now able to produce transformers with a rated capacity of up to 500 MVA and with 765 kV. From FY23 to FY25, revenue increased significantly from ₹8,738.83 million to ₹12,441.80 crore at a CAGR of 19.32%.

Valuation and Outlook

At the upper price band of ₹754, the issue is valued at a P/E multiple of about 48.87x on its FY25 post-IPO EPS of ₹15.43. We give a ‘SUBSCRIBE’ rating to the issue for the following reasons.