Rajesh Power Services IPO: The good and the bad

Published: 25th Nov 2024

By: Value Research

About Rajesh Power Services

Rajesh Power Services is an EPC (engineering, procurement and construction) contractor for the renewable and non-renewable power sector. It maintains, operates and sets up extra-high-voltage cables and transmission lines, solar plants, power transformers and substations.

IPO details

Post-IPO

Financial history

Key ratios

The good

With an order book of about Rs 2,400 crore (as of November 13, 2024), which is 8.4 times its FY24 revenue, there’s a high degree of predictability regarding Rajesh Power Services future growth prospects.

The bad

Given that Rajesh Power Services derives nearly 60% of its revenue from government projects, any change in policies or a decline in capex can hamper its financials.

Before you invest…

It’s important to know the risks associated with SME IPOs. To learn what these risks are read the full story by clicking the link below.

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