Chamunda Electrical Limited is set to launch its Chamunda Electrical Ltd IPO on February 4, 2025, with the subscription period closing on February 6, 2025. The company aims to raise approximately ₹14.60 crores through this IPO, offering 2,919,000 equity shares at a price band of ₹47 to ₹50 per share.
Key IPO Details:
- IPO Open Date: February 4, 2025
- IPO Close Date: February 6, 2025
- Basis of Allotment Finalization: February 7, 2025
- Listing Date: February 11, 2025
- Issue Type: Book Built Issue
- Issue Size: 2,919,000 equity shares, aggregating up to ₹14.60 crores
- Face Value: ₹10 per share
- Price Band: ₹47 to ₹50 per share
- Lot Size: 3,000 shares
- Minimum Investment: ₹1,50,000
Company Overview:
Established in June 2013, Chamunda Electrical Limited specializes in:
- Founded: June 2013
- Headquarters: Gujarat, India
- Industry: Electrical & Power Infrastructure
- Operation and maintenance up to 66 KV
- Testing and commissioning up to 220 KV
- Solar power generation with a 1.5 MW capacity
The company’s services encompass the erection of Extra High Voltage (EHV) equipment, structures, earthing, control cable works, and other related tasks for substations up to 220 KV. Chamunda Electrical has also established a 1.5 MW solar power generation facility in Banaskantha, Gujarat, and has entered into a 25-year Power Purchase Agreement with Uttar Gujarat Vij Company Limited for this project. As of August 31, 2024, the company employs 633 permanent staff members.
Business Segments
(1) Electrical Contracting Services
- Involves erection, installation, testing, and commissioning of Extra High Voltage (EHV) electrical substations.
- Expertise in power transmission and infrastructure projects.
(2) Renewable Energy (Solar Power Generation)
- Owns a 1.5 MW solar power plant in Gujarat.
- Has a 25-year Power Purchase Agreement (PPA) with Uttar Gujarat Vij Company Limited.
(3) Government & Industrial Contracts
- Provides services to government, semi-government, and private industrial clients for power infrastructure projects.
Competitive Edge
- Diverse Revenue Streams: Strong presence in power infrastructure & renewable energy.
- Growing Demand: Expansion in India’s power transmission & solar energy sector.
- Proven Track Record: Completed multiple government and private contracts.
Chamunda Electricals IPO Lot Size & Investment Details
| Lot Size | Number of Shares | Investment Amount (₹ at Upper Band ₹50) |
| 1 Lot | 3,000 Shares | ₹1,50,000 |
| 2 Lots | 6,000 Shares | ₹3,00,000 |
| 3 Lots | 9,000 Shares | ₹4,50,000 |
| 4 Lots | 12,000 Shares | ₹6,00,000 |
Minimum & Maximum Investment:
- Retail Investors (Minimum): 3,000 Shares (₹1,50,000)
- High Net-worth Individuals (HNI): Must apply for more than 1 lot (above ₹2 lakhs)
Financial Highlights:
In the fiscal year ending March 31, 2024, Chamunda Electrical reported:
- Total Revenue: ₹20.07 crores
- Profit After Tax: ₹2.46 crores
This reflects a significant increase from the previous fiscal year, where the company reported a total revenue of ₹14.01 crores and a profit after tax of ₹0.31 crores.
Promoters:
The promoters of Chamunda Electrical Limited are:
- Mr. Chiragkumar Natvarlal Patel
- Mr. Natvarbhai K Rathod
- Mrs. Purnikaben C Patel
Chamunda Electrical Ltd IPO Financial Information (2022 -2024)
Revenue & Profit Growth
| Financial Year | Revenue (₹ Crores) | Profit After Tax (₹ Crores) | EBITDA (₹ Crores) |
| FY 2024 (March 31) | ₹20.07 Cr | ₹2.46 Cr | ₹3.41 Cr |
| FY 2023 (March 31) | ₹14.01 Cr | ₹0.31 Cr | ₹1.79 Cr |
| FY 2022 (March 31) | ₹9.67 Cr | ₹0.30 Cr | ₹1.32 Cr |
Key Financial Ratios
- Earnings Per Share (EPS) FY24: ₹2.29
- Net Worth (FY24): ₹8.76 Cr
- Debt-to-Equity Ratio (FY24): 1.27
- Return on Net Worth (RoNW) FY24: 28.06%
- Total Assets (FY24): ₹24.31 Cr
Observations:
- Revenue grew 43.3% YoY from 2023 to 2024.
- Profit After Tax (PAT) saw a sharp rise from ₹0.31 Cr (2023) to ₹2.46 Cr (2024).
- The company has manageable debt and an improving profitability trend.
Chamunda Electricals Limited has shown consistent growth in revenue and profitability, indicating positive financial momentum ahead of its IPO.
Chamunda Electricals Limited – Key Performance Indicators
| Metric | FY 2024 | FY 2023 | FY 2022 | Growth Trend |
| Revenue (₹ Cr) | 20.07 | 14.01 | 9.67 | ↑ 43.3% YoY |
| Profit After Tax (₹ Cr) | 2.46 | 0.31 | 0.30 | ↑ 693.5% YoY |
| EBITDA (₹ Cr) | 3.41 | 1.79 | 1.32 | ↑ 90.5% YoY |
| Earnings Per Share (EPS) (₹) | 2.29 | 0.34 | 0.39 | ↑ Strong Growth |
| Net Worth (₹ Cr) | 8.76 | 4.65 | 4.34 | ↑ 88.5% YoY |
| Debt-to-Equity Ratio | 1.27 | 1.57 | 1.54 | ↓ Improving |
| Return on Net Worth (RoNW) % | 28.06% | 6.75% | 6.91% | ↑ Higher Profitability |
| Total Assets (₹ Cr) | 24.31 | 17.25 | 14.03 | ↑ Expanding Asset Base |
Key Takeaways:
- Strong Revenue Growth: 43.3% YoY growth from 2023 to 2024.
- Significant Profitability Improvement: PAT increased ~7x, showing efficiency.
- Improving Return on Net Worth (RoNW): Indicates higher profitability per invested capital.
- Debt Management: Debt-to-equity is reducing, making the company financially healthier.
Chamunda Electricals Ltd shows robust financial growth, increasing efficiency, and a strong profitability trend, making it an attractive IPO opportunity.
Chamunda Electrical Ltd IPO Valuation – 2024
Key Valuation Metrics (2024)
| Metric | Value | Remarks |
| Earnings Per Share (EPS) | ₹2.29 | Strong increase from ₹0.34 in FY23 |
| Price-to-Earnings (P/E) Ratio | 21.83x – 23.18x | Based on IPO price band ₹47 – ₹50 |
| Return on Net Worth (RoNW) | 28.06% | High profitability growth |
| Net Asset Value (NAV) per Share | ₹8.16 | Reflects company’s book value |
| Market Capitalization (Post IPO) | ₹54.96 Cr | Based on upper price band ₹50 |
| Enterprise Value (EV) | ₹62.25 Cr | Includes debt adjustment |
| EV/EBITDA Ratio | 18.25x | Evaluates company’s valuation efficiency |
Valuation Analysis:
- P/E Ratio (21.83x – 23.18x): Slightly higher than SME sector averages, indicating strong growth potential.
- High RoNW (28.06%): Shows efficient capital utilization.
- NAV per Share (₹8.16) vs. Issue Price (₹50): Reflects a premium, justified by revenue growth and profitability.
Strengths Of Chamunda Electrical Ltd IPO
(1) Strong Revenue & Profit Growth
- Revenue increased 43.3% YoY (₹20.07 Cr in FY24 vs ₹14.01 Cr in FY23).
- Profit After Tax (PAT) surged ~7x (₹2.46 Cr in FY24 vs ₹0.31 Cr in FY23).
(2) High Return on Net Worth (RoNW) – 28.06%
- Indicates efficient capital utilization and strong profitability.
(3) Growing Demand in Power & Electrical Infrastructure
- Specializes in substation maintenance (up to 220 KV) & solar power generation (1.5 MW), both high-growth sectors.
(4) Diversified Revenue Stream
- Mix of electrical contracting & solar power generation ensures stability.
(5) Debt Reduction & Strong Financials
- Debt-to-equity improving (1.27 in FY24 vs 1.57 in FY23), reducing financial risk.
Risks Of Chamunda Electrical Ltd IPO
(1) High Valuation (P/E ~23x)
- At ₹50 per share, the IPO is priced at a premium compared to some SME peers.
(2) SME Listing – Low Liquidity Risk
- NSE SME stocks have lower trading volumes, which may impact stock price movements post-listing.
(3) Industry Dependence & Competition
- The electrical contracting sector is highly competitive and dependent on government contracts.
(4) Working Capital-Intensive Business
- Project-based revenue model may lead to irregular cash flows.
(5) Promoter Holding Post-IPO
- If promoter stake reduces significantly, it may affect investor confidence.
Final Verdict:
Chamunda Electrical Ltd IPO shows strong financial growth and high RoNW, making it attractive. However, SME listing risks, valuation concerns, and industry competition should be considered before investing.
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