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BACKGROUND

Incorporated in 2012, EMS Limited is in the business of sewerage solution, Water Supply Systems, Water and Waste Treatment Plants, Electrical Transmission and Distribution, Road and Allied works, operation and maintenance of Wastewater Scheme Projects (WWSPs) and Water Supply Scheme Projects (WSSPs) for government authorities/bodies.

Objects and Details of the Issue:

* Total issue of ~Rs.321 Cr (at upper price band) consists of fresh issue worth Rs.146 Cr and offer for sale worth Rs.175 Cr

* The Company proposes to utilise the Net Proceeds from the Fresh Issue towards funding of working capital requirements of the company.

Investment Rationale:

* Urban Waste Generation and Treatment Capacity Significantly Lags Demand

* Increasing size of projects bodes well for margins as well as for prequalification with respect to bidding for large projects in future

* Footprint expansion

* Strong and consistent financial performance with robust order book

Valuation and Recommendation:-

EMS Limited intends to leverage its presence in the Sewerage solutions, Water Supply Systems, Water and Waste Treatment Plants segment. Company has a robust and industry leading order book – to – sales ratio of 3.4x. This provides for visibility of growth in coming years. We believe the asset light business model results in efficient utilisation of capital resulting in lower debt, high EBITDA margins and strong ROCE. We believe, EMS possesses higher growth and return ratios compared to peers and is also available at cheaper valuations. Thus we recommend to Subscribe to the IPO.

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SEBI Registration number is INH000001766

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