Best NSE Mainboard IPOs of April Month

In India, the IPO market is buzzing with activity. Notably, it’s not just institutional investors who are keenly eyeing these opportunities; even local retailers, like the Paanwala at the street corner, are intrigued. 

Retail investors recognize that IPOs can be a gateway to owning a piece of promising companies. Institutions, too, are voraciously gobbling up IPO shares. In April, we saw several mainboard IPOs, including SRM Contractors, Bharti Hexacom, VI, and JNK India. Stay tuned as we dissect these IPOs, analyse their performance, and reveal the star of the show. Whether it’s SRM Contractors, Bharti Hexacom, VI, or JNK India, we’ll uncover the winner!

Overview of Businesses 

1. SRM Contractor    

• Road projects in the Union Territories of Jammu and Kashmir and Ladakh include the design and building of roads, bridges, and highways, as well as their maintenance.
• Tunner projects include the design and construction of new tunnels, cut-and-cover tunnels for avalanche and landslide protection, and caverns, as well as the expansion, upgrading, restoration, and/or strengthening and improvement of existing tunnels in the Union Territories of Jammu and Kashmir and Ladakh.

2. Bharti Hexacom    

• Bharti Hexacom is a telecommunications provider operating in Rajasthan and the North Eastern circles of India. Under the brand Airtel, it offers mobile, fixed, and broadband services. 
• The company focuses on expanding its portfolio, enhancing customer engagement through digital offerings, and delivering exceptional experiences. 

3. VI
• Vodafone Idea Limited is a telecommunications service provider in India. 
• The company provides voice, data, and value-added services across 2G, 3G, and 4G technologies, such as short messaging and digital services for enterprises and consumers.

4. JNK India
• JNK India is a manufacturer having capabilities in thermal designing, engineering, manufacturing, supplying, installing and commissioning process fired heaters, reformers and cracking furnaces. With the ability to develop, engineer, manufacture, supply, install, and commission heating equipment, the firm serves both domestic and international markets.
• Indian Oil Corporation Limited, Tata Projects Limited, Rashtriya Chemicals & Fertilizers Limited, and Numaligarh Refinery Limited are a few of the company's domestic clients.

Financial Analysis of the Mainboard IPOs

Analysis and Interpretations  

1.  JNK has higher ROE compared to SRM Contractor, indicating better profitability and efficiency in generating returns on shareholders' equity and capital employed.
2. JNK has a lower Debt/Equity ratio (0.34) compared to SRM Contractor (0.5), suggesting a stronger financial position with less reliance on debt financing.
3. JNK has a notably higher P/BV ratio (11.92) compared to SRM Contractor (4.17), indicating that the market is valuing JNK's assets at a higher premium relative to its book value.
4. Both companies have healthy PAT Margin, but JNK has a higher margin (18.24%) compared to RSM Contractor (9.89%).

Overall, based on the provided financial metrics, JNK appears to have stronger financial numbers compared to SRM Contractor, VI, with higher profitability, efficiency, and lower debt levels.

Strengths & Weaknesses of IPOs

Analysis & Interpretations

1. Among the companies listed, JNK appears to have the strongest overall performance with a good ROE track record and improved debtor days. It also doesn't have any significant weaknesses listed.
2. SRM follows with its improved debtor days and no specific weaknesses mentioned.
3. VI faces challenges such as a low interest coverage ratio, decreasing promoter holding, and poor sales growth.
4. Bharti Hexacom seems to have the most significant weaknesses, including a negative ROE over the last 3 years and the potential capitalization of interest costs.

Overall, JNK seems to be the best-performing company among the four listed, while Bharti Hexacom appears to be facing the most significant challenges.