Subscribe to Vishnu Prakash R Punglia: Geojit

Geojit IPO report on Vishnu Prakash R Punglia

Vishnu Prakash R Punglia Ltd. (VPRPL), founded in 1986, is an ISO 9001:2015 certified integrated engineering, procurement, and construction (EPC) enterprise. With extensive experience in designing and constructing various infrastructure projects, the company serves Central and State Governments, autonomous bodies, and private entities across nine States and one Union Territory in India. The company's operational focus revolves around four key domains: Water Supply Projects (WSP), Railway Projects, Road Projects, and Irrigation Network Projects. • VPRPL’s topline grew consistently for the past 3 years and clocked a CAGR of ~55%, led by a robust order book and superior execution of water supply projects (~86% of FY23 revenue). • EBITDA grew ~86% CAGR over FY21-23, while EBITDA margins improved from 9.3% in FY21 to 13.4% in FY23, led by benign raw material prices and better absorption of overheads.

Valuation and Outlook

At the upper price band of ₹99, VPRPL is available at a P/E of 13.6x (FY23), which appears to be fairly priced compared to its peers. The consistent topline growth and operational efficiencies, experience of over three decades in the industry, strong support from government orders, healthy order pipeline, and new initiatives from Govt. of India to boost the sector will position the company well for growth. We assign a "Subscribe" rating for the issue on a short- to mediumterm basis.

For all IPO report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

24082023 - Vishnu Prakash R Punglia -IPO - geo