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Mangal Electrical Industries is engaged in manufacturing transformer components, transformers (5 KVA–10 MVA), and providing EPC services for substations. It operates five production units in Rajasthan with significant capacity for CRGO processing, amorphous cores, circuit breakers, and transformers. The company holds NABL, PGCIL, ISO, and NTPC approvals, ensuring high quality and compliance. Its customer base includes government utilities, private players, and exports to Europe, the Middle East, and the US.

Details of the Issue:

The public issue consists of fresh issue up to Rs 400 Cr. Company proposes to utilize the Net Proceeds towards:-

* Repayment of certain outstanding borrowings :- 101.27 Cr

* Capital expenditure :- 87.86 Cr

* Funding working capital requirements :- 122 Cr

Investment Rationale:

* Strong Leadership and Experienced Management

* Key Approvals and Certifications Strengthen Market Position

* Diversified Customer Base Ensures Stability

* Backward and Forward Integration Boosts Efficiency

* Consistent Track Record of Growth

Valuation and Recommendation:-

In peer comparison, Mangal Electrical has delivered faster growth (25% revenue CAGR vs 11% for peers) and stronger profitability (EBITDA margin 14.9% vs 12%). Returns are also better, with ROE at 29.2% compared to the peer average of 14%. However, valuations appear expensive at 32.8x P/E and 20.8x EV/EBITDA, compared to peer averages of 28.9x and 19.4x. Considering the high valuations and associated risks, we assign a Neutral rating to the IPO.

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SEBI Registration number is INH00000176