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Oswal Pumps Ltd (OPL) manufacturer’s solar-powered & grid-connected submersible and monoblock pumps, electric motors and solar modules. The Co has emerged as one the largest supplier of solar powered agricultural pumps under the PM Kusum Scheme in FY23 and FY24; and has directly or indirectly supplied ~38% of the total solar powered agricultural pumps installed as of Dec’24. Moreover, OPL is amongst the few fully integrated turnkey solar pumping system providers in India with the capability to manufacture solar powered agricultural pumps, solar modules, and pump controllers along with providing installation services. With Government aggressively planning to sanction solar powered pumps in Kusum 2 program, OPL would further benefit having capex plans in place.

Objects and Details of the Issue:

* Funding capital expenditure amounting to 90Cr

* Investment in its wholly-owned Subsidiary, for funding the setting up of new manufacturing units at Karnal, Haryana amounting to 273Cr

* Repayment of loans of the company and its Subsidiary totaling to 311Cr

Investment Rationale:

* PM-KUSUM: A Catalyst for OPL’s Solar-Led Growth

* End-to-End Manufacturing: OPL’s Competitive Edge through Vertical Integration

* OPL’s Foray into Industrial and High-Efficiency Pumping Solutions to act as cushion for any risks related to government projects

* Improving Financials

Valuation and Recommendation:-

OPL is OPL is the fastest growing vertically integrated solar pump manufacturer in India, in terms of revenue growth between FY22-FY24. It is amongst the largest suppliers of solar pumps under PM Kusum Scheme for FY23 & FY24 and is one of the few companies with vertically integrated turnkey solar pumping system capabilities in India. The company has delivered robust Revenue/EBITDA/PAT CAGR of 44%%/103%/134% between FY22-9MFY25 respectively. It currently has an order book of Rs 1,100 cr and an additional bid pipeline of ~Rs 3,200 cr indicating decent growth visibility in the coming years. At the upper price band of Rs 614, on post issue capital basis, the IPO is valued at 9MFY25 annualized P/E and EV/EBITDA multiple of 24.2x and 16.4x respectively which is at a discount to its closest peer Shakti Pumps. We recommend ‘Subscribe’ to the issue.

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SEBI Registration number is INH00000176