Published: 31st July 2024

Ceigall India IPO: The good and the bad

By: Value Research

About the company

Ceigall India is an infrastructure construction company known for undertaking specialised construction projects such as elevated roads, highways, expressways and tunnels.

Total IPO size (Rs Cr) 1,253 Offer for sale (Rs Cr) 568 Fresh Issue (Rs Cr) 684 Price Band (Rs) 380-401 Subscription dates August 1-5, 2024 Purpose of issue Repayment of debt

IPO details

M-cap (Rs cr) 6,985 Net worth (Rs cr) 1,572 Promoter holding (%) 82.1 Price/earnings ratio (P/E) 22.8 Price/book value (P/B) 4.4

Post-IPO

Key financials (Rs cr) 2Y growth (% pa) FY24 FY23 FY22   Revenue 63.5 3029 2068 1134   EBIT 66.3 463 258 167   PAT 56 306 167 126   Net worth 888 593 431   Total debt 1066 703 316

Financial history

PAT is profit after tax EBIT is earnings before interest and tax

3Y average FY24 FY23 FY22   ROE (%) 30.3 33.6 28.2 29.2   ROCE (%) 30.2 32 28.7 29.8   EBIT margin (%) 14.2 15.3 12.5 14.8   Debt-to-equity 1 1.2 1.2 0.7Ratios

Key ratios

ROE is return on equity ROCE is return on capital employed

The Good

With a sizable order book value of Rs 9,471 crore, Ceigall India boasts high revenue visibility and strong growth potential.

The Bad

Ceigall India’s revenue comes only from a handful of regions. Further, its cash flow has been in the red for some time. To find out why, read our complete analysis by clicking the link below.

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