Danish Power IPO

Danish Power Limited is recognized as a leading manufacturer and exporter of quality power equipment in India. Established in 1985 by Mr. Dinesh Talwar and Mrs. Shashi Talwar, the company has evolved from producing LT panels and battery chargers to specializing in a diverse range of transformers, including oil and dry type power transformers, distribution transformers, and control relay panels. With a commitment to operational excellence, Danish Power has built a legacy of trust with clients through high-quality products and reliable after-sales services.

The company offers customized solutions tailored to meet specific customer needs across various sectors, including renewable energy projects. Danish Power’s focus on maintaining a customer-centric approach has fostered long-term relationships, ensuring continued business regardless of volume. As the company celebrates over 35 years in the industry, it continues to adapt and expand its offerings to meet emerging challenges while retaining the skills and expertise expected by its customers.

Danish Power IPO Strengths

• Over three decades in the industry have established a strong market position through timely order execution and solid customer relationships.
• Serves various private clients and exports, with no customer exceeding 15-20% of total revenue, achieving a 23% CAGR over three years.
• Moderate capital structure with a net worth of ₹45-46 crore and strong debt protection metrics, ensuring comfort despite potential future capex risks.

Danish Power IPO Risks

• Operations require significant working capital, with gross current assets averaging 140-160 days. High debtor (60-90 days) and inventory days (80-100) necessitate careful management.
• Revenue was moderate at ₹188 crore in fiscal 2023, despite a 23% CAGR. A strong order book offers visibility, but timely execution and working capital management are essential for growth.