Ajax Engineering Ltd. is set to launch its initial public offering (IPO) from February 10 to February 12, 2025, aiming to raise approximately ₹1,269.35 crores. The IPO equity shares priced between ₹599 to ₹629 per share. Established in 1992, Ajax Engineering has emerged as a global leader in manufacturing self-loading concrete mixers and offers a comprehensive range of construction machinery, including batching plants and concrete pumps.
₹00
₹629
₹576.00
Expert Opinions
Market sentiment for the Ajax Engineering IPO is favorable, driven by the increasing demand for construction equipment and the company’s strong market position in self-loading concrete mixers, where it holds a 77% market share. Company strengths include a comprehensive product portfolio with over 110 variants of concrete machinery and a proven track record of financial performance, with revenue growth of 51.3% to ₹1,741.4 crores in FY2024. Risks and challenges involve potential fluctuations in raw material costs and competition from established players like Action Construction Equipment and BEML, which could affect profitability.
Valuation analysis for FY 2024 shows a return on equity (ROE) of 24.53%, return on capital employed (ROCE) of 32.82%, and return on net worth (RoNW) of 19.39%, reflecting robust financial health. From a long-term investment perspective, Ajax Engineering is well-positioned to benefit from ongoing infrastructure projects, making it an attractive option for investors seeking growth in the construction equipment sector.
Investor Considerations
Investors considering the Ajax Engineering IPO should evaluate several key factors. Company performance and fundamentals indicate strong financial growth, with revenue increasing from ₹1,172.57 crores in FY2023 to ₹1,780.07 crores in FY2024, alongside a profit after tax of ₹225.15 crores, reflecting effective management and operational efficiency. The sector outlook is favorable, driven by significant infrastructure development initiatives in India, which are expected to boost demand for construction equipment.
The IPO valuation shows a price-to-book value of approximately 7.84, a profit after tax (PAT) margin of 12.65, and a debt-to-equity ratio of 0.01, indicating a solid financial position with minimal debt. Growth prospects remain robust as the company plans to expand its product offerings and enhance manufacturing capabilities. However, potential risk factors include competition from established players and fluctuations in raw material prices. A long-term investment horizon is advisable as Ajax Engineering aims to leverage ongoing infrastructure projects for sustained growth and profitability.
| Date | GMP | Trend |
|---|---|---|
| 15 Feb 2025 11.28 | ₹00 | --- |
| 14 Feb 2025 17.50 | ₹00 | Down |
| 13 Feb 2025 18.14 | ₹10 | Down |
| 11 Feb 2025 10.56 | ₹20 | Down |
| 10 Feb 2025 10.35 | ₹50 | --- |
| 09 Feb 2025 12.21 | ₹50 | Down |
| 08 Feb 2025 20.41 | ₹60 | --- |
| 07 Feb 2025 20.05 | ₹60 | --- |
| 06 Feb 2025 19.59 | ₹60 | Up |
| 05 Feb 2025 12.40 | ₹45 | --- |
FAQs
The Grey Market Premium showed moderate accuracy in predicting Ajax Engineering’s listing sentiment, though missed the magnitude. While the GMP of ₹0 suggested weak market enthusiasm with a flat listing, the stock actually listed at a significant discount of 8.43%. With a prediction error of 8.43%, the GMP correctly indicated negative market sentiment but failed to capture the full extent of the downside, demonstrating partial reliability as a sentiment indicator in this case.
Ajax Engineering IPO Current GMP is ₹00.
Ajax Engineering IPO Expected Returns is 0.00%.
Ajax Engineering IPO estimated listing price is ₹629.