Readymix Construction Machinery Limited is preparing for its initial public offering (IPO), set to open from February 6 to February 10, 2025, aiming to raise approximately ₹37.66 crores. The IPO will consist of 30,62,000 equity shares with a face value of ₹10 each, priced within a specified range yet to be announced. The company specializes in manufacturing construction machinery, catering to the growing demand in the infrastructure sector.
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Expert Opinions
Market sentiment for the Readymix Construction IPO is optimistic, driven by increasing infrastructure development and a robust demand for construction machinery in India. The company has established itself as a leader in manufacturing dry mix mortar and wall putty plants, with a strong operational track record and a commitment to quality and innovation. However, risks include potential fluctuations in raw material prices and competition from established players in the construction machinery sector, which could impact margins.
For FY 2024, Readymix Construction Machinery reported a return on equity (ROE) of 65.90%, return on capital employed (ROCE) of 48.96%, and return on net worth (RoNW) of 49.51%, indicating strong profitability and efficient capital utilization. From a long-term investment perspective, the company is well-positioned to capitalize on ongoing infrastructure projects.
Investor Considerations
Investors considering the Readymix Construction IPO should assess several key factors. Company performance and fundamentals indicate a strong upward trend, with revenue increasing from ₹55.01 crores in FY2023 to ₹69.84 crores in FY2024, alongside a significant rise in net profit from ₹2.78 crores to ₹9.28 crores, reflecting operational efficiency. The sector outlook is favorable, driven by ongoing infrastructure projects and a growing demand for construction machinery.
The IPO valuation reveals a price-to-earnings (P/E) ratio of approximately 10.46 , and a debt-to-equity ratio of 0.42, indicating a strong financial position with low leverage. Growth prospects remain robust as the company plans to expand its product offerings and enhance manufacturing capabilities. However, potential risk factors include fluctuations in raw material prices and competition from established players. A long-term investment horizon is advisable as Readymix aims to capitalize on favorable trends in the construction sector for sustained growth and profitability.
| Date | GMP | Trend |
|---|---|---|
| 11 Feb 2025 11.04 | ₹00 | --- |
| 10 Feb 2025 10.36 | ₹00 | --- |
| 09 Feb 2025 12.19 | ₹00 | Down |
| 08 Feb 2025 20.46 | ₹5 | --- |
| 07 Feb 2025 20.04 | ₹5 | Down |
| 06 Feb 2025 19.59 | ₹10 | Down |
| 05 Feb 2025 11.05 | ₹15 | Up |
| 04 Feb 2025 11.34 | ₹00 | --- |
| 03 Feb 2025 11.22 | ₹00 | --- |
FAQs
The Grey Market Premium showed perfect accuracy in predicting Readymix Construction’s listing performance. The GMP of ₹0 predicted a flat listing at the issue price, and the stock listed exactly at ₹123 with no gains or losses. With zero prediction error, the GMP perfectly captured the flat listing sentiment, demonstrating complete accuracy in this case.
Readymix Construction IPO Current GMP is ₹00.
Readymix Construction IPO Expected Returns is 0.00%.
Readymix Construction IPO estimated listing price is ₹123.