Ajax Engineering IPO — Should You Subscribe? Read Anand Rathi's Analysis

The Rs 1,269-crore IPO consists only of an offer-for-sale with no fresh issue component. The concrete equipment player has fixed the price band in the range of Rs 599 to Rs 629 per share..NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Anand Rathi Report.Ajax Engineering Ltd. will launch its initial public offering today and the offer closes for subscription on Feb. 12. The concrete equipment player has fixed the price band in the range of Rs 599 to Rs 629 per share.The Rs 1,269-crore IPO consists only of an offer-for-sale with no fresh issue component..Valuation & outlook Ajax Engineering since its inception 32 years ago, it has developed comprehensive range of concrete equipment product portfolio across the concrete application value chain. The company follows an asset-light model by sourcing materials from 546 suppliers. It result focuses on localisation as a result of which imports constitute less 10% of costs of materials. The company’s addressable market is growing faster given the government thrust on infrastructure, which augurs well for the company. On the other hand promotor group needs to offload shares over 3 years to reduce the stake to75% or lower (currently 82% post issue). However the company offers niche construction equipment in its business has a robust financials. On valuation parse, based on FY24 it is seeking PE of 32 times and post issue market cap comes at Rs 71,961 million with the issue is reasonably priced. Therefore, given the factors like, market leading in SLCM’s products, present across all the concrete application value chain and stable top and bottom lines, we recommend the issue can be consider as “Subscribe for Long term”..Click on the attachment to read the full report:.Ajax Engineering IPO: Price Band, Listing And Allotment Date, Financials, Risks And More— DRChoksey's Analysis.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Ajax Engineering IPO — Should You Subscribe? Read Anand Rathi's Analysis

The Rs 1,269-crore IPO opened on February 10 and the company has fixed the price band in the range of Rs 599 to Rs 629 per share.

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