Ceigall India Limited IPO : A Comprehensive Analysis

Timeline

IPO Open Date:	August 1, 2024
IPO Close Date:	August 5, 2024
Basis of Allotment:	August 6, 2024
Refunds:	August 7, 2024
Credit to Demat Account:	August 7, 2024
IPO Listing Date:	August 8, 2024

About Company

Ceigall India Limited is a prominent player in India’s infrastructure construction sector, specializing in specialized structural projects. With a focus on engineering, procurement, and construction (EPC) projects, the company has carved a niche for itself in the industry.

Core Business:

• EPC Projects: Ceigall India undertakes design, engineering, procurement, and construction of complex infrastructure projects.
• Specialized Projects: The company specializes in elevated roads, flyovers, bridges, railway overbridges, tunnels, highways, expressways, and runways.
• Operations and Maintenance: Ceigall India also provides operations and maintenance services for completed projects.

Market Position:

• The company has a strong presence in the Indian infrastructure sector with a focus on road and highway projects.
• Ceigall India has successfully executed numerous projects for government agencies and private clients.
• The company has a growing order book, indicating a healthy pipeline of future projects.

Future Outlook:

• The Indian government’s emphasis on infrastructure development presents significant growth opportunities for Ceigall India.
• The company’s focus on specialized projects provides a competitive advantage in the market.
• Expanding its geographic reach and diversifying its project portfolio could be potential growth avenues.

Key Highlights:

• Strong Order Book: Ceigall India boasts a robust order book, indicating a healthy pipeline of future projects.
• Focus on Infrastructure: The company’s specialization in road and highway projects aligns with the government’s infrastructure push.
• Financial Performance: The company has demonstrated consistent growth in recent years.
• Geographical Diversification: Ceigall India operates across various states in India, reducing dependence on a single region.

Here are some resources to learn more about company

• Read DRHP Here

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Objective

The Company proposes to utilise the Net Proceeds towards funding the following objects:

• Purchase of Equipment: To enhance operational efficiency and capacity.
• Repayment of Borrowings: To reduce the financial burden on the company and its subsidiary, Ceigall Infra Projects Private Limited.
• General Corporate Purposes: To support day-to-day operations and strategic initiatives.

POSITIVE

• Strong Order Book: The company boasts a robust order book, indicating a healthy pipeline of future projects. This can ensure a steady revenue stream.
• Government Focus on Infrastructure: The Indian government’s emphasis on infrastructure development is a positive for companies like Ceigall India, as it creates a favorable business environment.
• EPC Expertise: The company’s specialization in EPC projects positions it as a key player in the infrastructure sector.

NEGATIVE

• Cyclicality of the Industry: The infrastructure sector is cyclical, influenced by economic conditions and government spending. Slowdowns can impact revenue and profitability.
• Execution Risks: Large-scale infrastructure projects involve complex execution challenges, which could impact project timelines and profitability.
• Raw Material Costs: Fluctuations in the prices of construction materials can affect margins.
• Competition: The infrastructure sector is highly competitive, with both established players and new entrants vying for market share.

So,How Does Ceigall India Limited IPO Fare in Terms of Financials ?

Financial Details

Period Ended	31 Mar 2024	31 Mar 2023	31 Mar 2022
Assets	2,592.19	1,827.82	959.14
Revenue	3,066.19	2,087.04	1,146.50
Profit After Tax	304.91	167.70	126.43
Net Worth	906.41	593.06	431.25
Total Borrowing	1,811.02	1,252.58	652.12
Amount in ₹ Crore

Here are some key observations:

• Assets have nearly tripled from ₹959.14 crore in 2022 to ₹2,592.19 crore in 2024.
• Revenue has grown steadily, reaching ₹3,066.19 crore in 2024, reflecting an increase of more than 160% over the past three years.
• Profit after tax has also increased, reaching ₹304.91 crore in 2024.

Ceigall India Limited IPO Valuation :

KPI	Values
ROE	33.57%
ROCE	31.98%
Debt/Equity	1.17
RoNW	33.57%
P/BV	6.95
PAT Margin (%)	10.05

Ceigall India Limited IPO – SWOT Analysis

Strengths

• Core Expertise: The company’s specialization in EPC projects for infrastructure development provides a strong foundation for growth.
• Order Book: A robust order book indicates a healthy pipeline of future projects, ensuring revenue stability.
• Government Focus: The Indian government’s emphasis on infrastructure development creates a favorable business environment for Ceigall India.
• Execution Capabilities: Proven track record in executing complex infrastructure projects.

Weaknesses

• Cyclicality: The infrastructure sector is cyclical, influenced by economic conditions, which can impact revenue and profitability.
• Competition: The infrastructure sector is highly competitive, with both established players and new entrants vying for market share.
• Raw Material Costs: Fluctuations in the prices of construction materials can impact profitability.
• Execution Risks: Large-scale infrastructure projects involve complexities that can lead to project delays and cost overruns.

Opportunities

• Expanding Geographical Presence: Ceigall India can explore opportunities in new regions within India or even international markets.
• Diversification: The company can consider diversifying into other infrastructure segments, such as water and sanitation, to reduce dependence on a single sector.
• Public-Private Partnerships (PPPs): Participating in PPP projects can offer new avenues for growth.
• Technological Advancements: Adopting new technologies can improve efficiency and reduce costs.

Threats

• Economic Slowdown: A downturn in the economy can impact infrastructure spending and reduce project opportunities.
• Regulatory Changes: Changes in government policies or regulations can affect project execution and profitability.
• Competition: Intense competition from both domestic and international players can erode market share and profitability.
• Geopolitical Risks: Global geopolitical events can impact the supply chain and project execution.

COMPETITIVE ANALYSIS: MARKET PEERS

• Larsen & Toubro (L&T): A diversified conglomerate with a significant presence in the infrastructure sector.  
• Tata Projects: Part of the Tata Group, offering a wide range of engineering and construction services.  
• Shapoorji Pallonji Group: A prominent player in the Indian infrastructure industry with a diverse portfolio.
• GMR Infrastructure: Known for its expertise in airports, highways, and energy sectors.

Ceigall India Limited IPO GMP

• Grey market premium as on 05-08-2024 = Rs 50/ Share

Disclaimer:

• IPO Grey Market Premium (Ceigall India Limited IPO GMP) mention is valid for the specific date as mentioned in the header.
• We are not buying and selling IPO forms on IPO Grey Market.
• Don’t decide to subscribe to an IPO just based on the initial price, as it can change before the listing.Subscribe only considering Fundamentals of the companies.

Ceigall India Limited IPO

🔴 Live Subscription Status 🔴

05/08/2024 5:00 PM

	NO OF SHARES OFFERED	Day 1	Day 2	Day 3
Qualified Institutional Buyers(QIBs)	6,237,721	0.00	0.01	31.26
Non Institutional Investors(NIIs)	4,678,291	0.93	1.81	14.83
Retail Individual Investors(RIIs)	10,916,012	0.85	1.72	3.82
Employee	55,096	3.27	5.95	11.84
Total	21,887,120	0.63	1.26	14.01

FINAL TAKEAWAY

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