Ishan International Limited is aiming to raise Rs. 18.24 crore through its initial public offering (IPO), which is expected to open on September 9 and close on September 14. Unlike most SME IPOs raining down these days, this company comes out with a 26-year undisputed dominance in the Southeast Asian engineering infrastructure market with overseas offices in the Philippines. , Indonesia, Hanoi (Vietnam), Ho Chi Minh City (Vietnam) and Kenya (in progress). Having an undisputed dominance of 80% market share in these developing countries means easy access to huge funds and endless business opportunities in the engineering infrastructure industry. By understanding the scenario from a business perspective, India provides the highest quality engineering solutions at the lowest rate across the globe. Over the past 20 years, Ishan International Ltd. took these engineering solutions from India and sold them to these underdeveloped countries in Southeast Asia with skilled labor, which ultimately helped the company create its dominance in very little time. of time. Considering that there are over 30 underdeveloped countries in close proximity to Asia, Ishan International plans to capture and monetize this untouched market over the next 5 years. This clearly proves how Ishan International Ltd. effectively uses its market dominance and supply chain to create a highly profitable environment for its investors.
Before investing in this IPO, know that India’s largest industrial sector is engineering. The engineering sector is important to the Indian economy as it relates to the sale and manufacture of engineering machinery and infrastructure. India is developing its engineering sector to become a global superpower. The Engineering Export Promotion Council (EEPC) promotes the export of Indian engineering goods, products and services worldwide. Ishan International is a star certified export house. To be a certified star export house and to maintain star export house certification, a company must make a significant contribution to India’s foreign trade.
By understanding the finances of the company from the DRHP, we can say that with the existing ₹40-50 crore+ order backlogIshan International Limited sees close 250% revenue growth since its last quarter. The company has witnessed an astonishing 87% growth in its after-tax profit, as well as a 20% growth in the company’s overall net worth compared to last quarter. The company also has a lower P/E ratio than its peers and a higher EPS than its peers. Another point to note is that there is no sale offer as Ishan International is only making a new initial public issue which will be effectively used to fund more business activities and joint ventures. Ishan International Limited has planned a fixed price issue of ₹80 per share, which tends to be a fair value for the company. The GMP still remains in the positive note but is still unknown to everyone. If an investor is looking for companies with incremental but long-term growth potential in an evergreen industry like engineering infrastructure, then Ishan International could prove to be the perfect fit.
To add contrast to the picture and make this IPO worth waiting for, let’s compare Thermax Ltd. ltd. has a P/E ratio of 32 & 3% RoNW as on the performance of the last quarter. Ishan International being a bit smaller, manages to do a bit better than the industry benchmark due to its undisputed geographic dominance and highly efficient supply chain.
Ishan is active in all sectors and geographies. Sugar and jaggery factories and machinery, pharmaceuticals, hydroelectric power stations, pollution control equipment. The company is expected to become a leader in this field in the years to come. The company commissioned its largest 66 megawatts for the first time in fiscal year 2019-2020 and received additional orders shortly after that delivery. The company’s presence in all verticals gives it a broad product portfolio and strong order backlog, making it financially viable. Ishan is expecting a repeat order after successfully completing a large order and further strengthening its existing backlog.
As long as humanity exists, engineering infrastructure will grow exponentially to meet needs. In engineering infrastructure, a well-established supply chain, skilled workforce and quality machinery are essential for business growth. Ishan International Limited has been profitable and dominant in this industry for over 20 years, indicating a bright future for the company and its long-term shareholders. To ensure attribution in its IPO, apply through Net Banking or the ASBA process. Check the RHP and consult your financial adviser before making any investment decisions.
(The article mentioned above is a Consumer connect initiative, This article has no journalistic/editorial implications of IDPL, and IDPL claims no responsibility)