Ishan International Limited sees nearly 250% revenue growth quarter over quarter, as well as an outstanding international order book
Ishan International Limited is aiming to raise Rs. 18.24 crore by means of its initial public offering (IPO), which is set to open on the 9th of September and close on the 14th of September.
Ishan International Limited is aiming to raise Rs. 18.24 crore by means of its initial public offering (IPO), which is set to open on the 9th of September and close on the 14th of September. Unlike most of the SME IPOs raining these days, this company comes out with an undisputed dominance of 26 years in the South-East Asian Engineering Infrastructure market with overseas offices in the Philippines, Indonesia, Hanoi (Vietnam), Ho Chi Minh City (Vietnam) and Kenya (in the process). Having an undisputed dominance of 80% market share in such developing nations means easy access to huge funds and endless business opportunities in the engineering infrastructure industry. Understanding the scenario from a business point of view, India supplies the highest quality engineering solutions at the lowest rate in the whole world. For the past 20 years, Ishan International Ltd. has been taking those engineering solutions from India & selling them to these under-development South-East Asian countries along with skilled manpower, which ultimately helped the company to create its dominance in a very short span of time. Considering that there are more than 30 underdeveloped nations in the near vicinity of Asia, Ishan International plans to capture and monetize this untouched market in the next 5 years. It clearly proves how Ishan International Ltd. is effectively using its market dominance and supply chain to create a highly profitable environment for its investors.
Before investing in this IPO, know that India's largest industrial sector is engineering. The engineering sector is important to India's economy because it's linked to the sales & manufacturing of engineering machinery & infrastructure. India is developing its engineering sector to become a global superpower. The Engineering Export Promotion Council (EEPC) promotes the export of Indian engineering goods, products, and services worldwide. Ishan International is a certified Star export house. To be a certified star export house & to retain the star export house certification, a company must make significant contributions to India's foreign trade.
By understanding the financials of the company from the DRHP, we can say that with the existing ₹40-50 crore+ order book, Ishan International Limited sees nearly 250% revenue growth from its last quarter. The company witnessed an astonishing 87% growth in its profit after tax, along with a 20% growth in the company's overall net worth from the last quarter. The company also comes with a P/E ratio lower than its peers and an EPS higher than its peers. Another point worth noting is that there is no Offer for Sale as Ishan International is making only a fresh Initial Public Issue which will be used effectively to fund more business activities and joint ventures. Ishan International Limited has planned a fixed price issue at ₹80 per equity share, which tends to be a fair value for the company. The GMP still remains in the positive mark but is still unknown to all. If an investor looks for companies with gradual yet long-term growth potential in an evergreen industry like engineering infrastructure, then Ishan International could prove to be the perfect fit.
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To add contrast to the picture and make this IPO worth looking forward to, let's compare Thermax Ltd. The industry leader, with a market cap of ₹2.85 lac crore, has a P/E ratio of 86 & 4% RoNW, whereas Ishan International Ltd. has a P/E ratio of 32 & 3% RoNW as on the last quarter's performance. Ishan International being on the smaller side manages to perform a little better than the industry benchmark due to its undisputed geographical dominance & highly efficient supply chain.
Ishan is active across sectors and geographies. Sugar and Jaggery Plants & Machinery, Pharmaceuticals, Hydro Power Plants, Pollution Control Equipment. The company is expected to become a leader in this field in the coming years. The company commissioned its largest 66 megawatts for the first time in FY 2019-20 and received additional orders right after that delivery. The company's presence across verticals gives it a broad product portfolio and strong order book, making it financially viable. Ishan expects a repeat order after successfully completing a large order and building its existing order book even stronger.
As long as mankind exists, engineering infrastructure will grow exponentially to meet needs. In engineering infra, a well-established supply chain, skilled manpower, and quality machinery are essential for company growth. Ishan International Limited has been profitable and dominant in this industry for over 20 years, indicating a bright future for the company and its long-term shareholders. To ensure allotment in its IPO, apply via Net Banking or the ASBA process. Check the RHP & consult your financial advisor before making any investment-related decisions.
( Above mentioned article is a Consumer connect initiative, This article does not have journalistic/editorial involvement of IDPL, and IDPL claims no responsibility whatsoever)
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