Rachana Infrastructure Limited
Start Date20-05-2022
Application Timing10am-5pm
Price Range₹135 - ₹135
Min Qty1000
Min. Investment₹135000
Listing Date20-05-2022
Close Date02-06-2022

About Rachana Infrastructure Limited

Rachana Infrastructure Limited offers infrastructure and civil construction services. Rachana Infrastructure is a mid-size private sector company engaged in the business of construction of roads and highways, irrigation, hydropower pro

Why To Invest in Rachana Infrastructure Limited

RIL is operating in a highly competitive and fragmented segment. Its financial data is not in line with the asking price. Based on its latest financial performance, the issue is exorbitantly priced. There is no harm in skipping this pricy bet.

Strengths And Risks
Competitive Strength: Leading Road-focused BOQ and EPC Contractor. Management and an integrated in-house project team with strong execution capabilities and extensive industry experience. Visible growth through a robust order book.
Weak in FINANCIAL PERFORMANCE: On the financial performance front, for the last three fiscals, RIL has posted turnover/net profits of Rs. 113.93 cr. / Rs. 4.66 cr. (FY19), Rs. 158.41 cr. / Rs. 5.97 cr. (FY20) and Rs. 107.06 cr. / Rs. 4.55 cr. (FY21). For the first nine months of FY22 ended on December 31, 2021, it has earned a net profit of Rs. 1.40 cr. on a turnover of Rs. 41.71 cr. For the last three fiscals, it has posted an average EPS of Rs. 3.20 and an average RoNW of 14.31%. The issue is priced at a P/BV of 5.35 based on its NAV of Rs. 25.80 as of December 31, 2021, and at a P/BV of 3.23 based on its post-IPO NAV of Rs. 42.76. If we annualize FY22 earnings and attribute it to post IPO fully diluted equity capital, then the asking price is at a P/E of 138, making it an exorbitantly priced issue.
When will Rachana Infrastructure IPO list? +

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