Subscribe for Quadrant Future Tek Ltd IPO; Geojit Financial Services

Geojit Financial Services, has come out with its report on Quadrant Future Tek Ltd. The research firm has recommended to “ Subscribe” the ipo in its research report as on January 06 2025.

Broker Research

January 07, 2025 / 11:02 IST

IPO

Geojit Financial Services, Quadrant Future Tek Ltd

Quadrant Future Tek Ltd. (QFTL) manufactures specialty cables for railway rolling stock and the naval (defence) industry, focusing on Electron Beam Irradiated Cables for high-performance, fire safety, and lightweight applications. Founded in 2015 and headquartered in Mohali, Punjab, QFTL recently expanded to develop Automatic Train Protection System using RFID technology to prevent train collisions, under the RDSO's Kavach project. In CY24, the domestic specialty cables market was valued at USD 589mn, and is projected to grow at s CAGR of 9.8% (CY24E-CY30). The Indian Train Control System market, valued at USD 208mn in CY24, is expected to grow at a CAGR of 12.7% (CY24E-CY30E).

Valuation and Outlook

At the upper price band of Rs.290,QFTL is available at a P/E of 78.8x (FY24), which appears expensive compared to peers. However, company’s entry into Train Control Systems, and government support for railway modernization are positives. Despite concerns over negative PAT and limited experience in Train Control Systems, we recommend subscribe on a short term basis for high risk investors.

For all IPO report, click here