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BACKGROUND

Vikran Engineering Limited is one of the fast-growing EPC companies in India. The company provides end-to-end services including design, supply, installation, testing, and commissioning on a turnkey basis. Its operations cover multiple sectors such as power transmission & distribution, water infrastructure, and railways. Its clients include major government entities like NTPC, Power Grid, state power distribution companies, and railways. With government push for electrification, renewable energy, and water infrastructure, Vikran Engineering is well positioned to capture upcoming opportunities.

Details of the Issue:

The public issue consists of OFS aggregating up to Rs 51 Cr. And fresh issue up to Rs 721 Cr. Company proposes to utilize the Net Proceeds towards:-

* Funding working capital requirements – 541 Cr

Investment Rationale:

* Fast-growing EPC company with strong execution

* Diversified order book of ?2,044.3 Cr

* Pan-India presence with robust supply chain

* Strong in-house design, engineering, and quality control

* Experienced promoters and professional management team

Valuation and Recommendation:-

Vikran delivers superior profitability compared to peers, with EBITDA margins of 17.5% versus the industry average of 11%. Its ROCE (22.1%) and ROE (16.6%) are also higher. In terms of valuation, the IPO is priced at a P/E of 32.1x and EV/EBITDA of 16.9x, which are lower than the peer averages of 37.7x and 23.9x, respectively, making the pricing reasonable. While the company is smaller in scale (?916 Cr revenue vs. peer average of ?12,935 Cr), it offers higher growth and better margins. Considering these factors, we recommend a Subscribe rating for the IPO.

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SEBI Registration number is INH00000176