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SUNTECH IPO

Suntech Infra Solutions Limited
Start Date25-06-2025
Application Timing10am-5pm
Price Range₹81 - ₹86
Min Qty1600
Min. Investment₹129600
Listing DateNA
Close Date27-06-2025

About Suntech Infra Solutions Limited

Suntech Infra Solutions Limited, incorporated in April 2009, is a B2B civil construction company specializing in foundation and structural works. The company provides services via direct contracting, sub-contracting, and equipment rental. Suntech operates across sectors like Power, Oil & Gas, Steel, Cement, Renewable Energy, Refineries, and Infrastructure. Its clientele includes reputed names such as Bharat Mandapam (ITPO), IOCL Refinery, Ultratech Cement, and UNITY Group.

As of July 31, 2024, the company has 6 ongoing projects worth ?186.37 crore and an equipment rental order book of ?10.92 crore. Its operations span across major Indian states including Delhi, Gujarat, Orissa, Rajasthan, and Bihar. Backed by a robust fleet of advanced machinery like Hydraulic Rotary Piling Rigs and Diaphragm Wall Grabs, and with over 462 employees and 200+ casual workers, the company has demonstrated consistent execution and sectoral expertise.

Why To Invest in Suntech Infra Solutions Limited

Strong Financial Growth: PAT has grown from 3.02 Cr in FY22 to 10.28 Cr in FY24 (Dec), reflecting robust profit growth.

Healthy Margins: EBITDA margin stands at 28.28%, and PAT margin at 9.67% showing efficient operational management.

Large Order Book: Projects worth 186.37 Cr ensure visibility of future revenue.

Strong Return Ratios: ROE of 28.50% and RoNW of 23.97% reflect effective capital deployment.

Expansion-Focused IPO: Proceeds are directed towards working capital and equipment purchase, ensuring scalability.

Reasonable Valuation: Post-IPO P/E of 12.15x and Price to Book of 3.43 make it attractively priced compared to peers.

Financial Table
Period Ended 31 Dec 2024 31 Mar 2024 31 Mar 2023 31 Mar 2022
Assets164.30 120.28100.3877.93
Revenue91.25 96.2586.1972.32
Profit After Tax 10.28 9.255.763.02
EBITDA29.5727.2219.9913.47
Net Worth 48.8438.56 26.3220.56
Reserves and Surplus 33.45 36.00 23.90 18.15
Total Borrowing 79.9356.38 33.38 34.25
Strengths And Risks
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Diverse Project Portfolio: Suntech Infra operates across multiple high-growth industries like Power, Oil & Gas, Cement, Steel, Renewable Energy, and Infrastructure. This diversified exposure reduces dependency on a single sector and ensures steady project inflow.
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Strong Asset Base: The company owns a large fleet of modern and high-tech construction equipment such as Hydraulic Rotary Piling Rigs, Diaphragm Wall Grabs, and Crawler Cranes, ensuring in-house execution capabilities and reduced third-party dependency.
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Experienced Management Team: Led by seasoned promoters and a skilled management team, Suntech Infra has a successful track record in timely project completion and client satisfaction in both public and private sectors.
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Consistent Financial Growth: With increasing revenue and PAT over the last three years, the company showcases strong financial fundamentals. EBITDA margin of 28.28% and PAT margin of 9.67% signal operational efficiency.
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Prestigious Clientele: The company has executed key projects for top clients like Bharat Mandapam (ITPO), IOCL, Ultratech Cement, and UNITY Group, highlighting its credibility and industry reputation.
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Strong Return Ratios: The company boasts an impressive ROE of 28.50% and RoNW of 23.97%, reflecting effective use of shareholder capital and strong profitability metrics.
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SME Exchange Listing: Being listed on the NSE SME platform may expose the stock to higher volatility and limited liquidity compared to mainboard-listed stocks, impacting investor exit options.
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Client Concentration Risk: A significant portion of revenue is derived from a few large clients. Any disruption or non-renewal of contracts with these clients could adversely affect business performance.
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High Working Capital Requirements: Civil construction projects typically involve heavy working capital cycles. Delays in payments or material cost fluctuations can stress cash flows.
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Moderate Leverage: With a debt-to-equity ratio of 1.46, the company has moderate financial leverage. Rising interest rates or additional borrowings could impact net profitability.
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Execution-Related Challenges: Timely execution is critical in the infrastructure sector. Any delay in project delivery due to manpower, regulatory, or supply chain issues can lead to cost overruns and penalties.
FAQs
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