Upcoming IPO: Khyati Global Ventures & Garuda Construction Insights

Overview of Khyati Global Ventures and Garuda Construction & Engineering

As October 2024 approaches, Indian IPO market is buzzing with listings of two highly anticipated companies—Khyati Global Ventures Limited & Garuda Construction & Engineering Limited. Both companies come from distinct sectors, offering investors chance to diversify their portfolios. Khyati Global Ventures Limited operates within FMCG & pharmaceutical export sectors, while Garuda Construction & Engineering Limited is construction firm providing residential, commercial, & infrastructure services. This report provides in-depth analysis of core businesses, financial trends, strengths, valuations, & future outlook of both IPOs to help investors make informed decision.

Khyati Global Ventures Limited: Core Business Overview

Khyati Global Ventures Limited, formerly known as Khyati Advisory Services Limited, was incorporated in 1993 & operates primarily as exporter & repacker of FMCG & pharmaceutical products. company has diverse product portfolio spanning food & non-food FMCG products, household items, festive handicrafts, & pharmaceutical goods. It exports globally recognized Indian brands like Everest, Parle G, MDH, & Aashirvaad to over 40 countries. Khyati's customer base largely consists of wholesalers & supermarket chains abroad, particularly in markets where Indian-origin products are in demand.

Key Business Segments:
1. Food FMCG Products – Export of globally recognized Indian food brands.
2. Non-Food FMCG Products – Household & personal care products like Dove, Colgate, & Godrej.
3. Pharmaceutical Products – Export of generic drugs & medical supplies.
4. Festive Handicrafts – Indian handicrafts & pooja-related products.

Garuda Construction & Engineering Limited: Core Business Overview

Founded in 2010, Garuda Construction & Engineering Limited specializes in residential, commercial, infrastructure, & industrial construction services. Company’s portfolio includes high-profile projects such as hotels & boutique resorts, as well as strong focus on residential buildings in key Indian regions like Maharashtra, Karnataka, & Tamil Nadu. Additionally, Garuda offers Mechanical, Electrical, & Plumbing (MEP) services along with Operation & Maintenance (O&M) contracts for ongoing projects. 

Key Business Segments:
1. Residential & Commercial Construction – Focused on projects within Mumbai Metropolitan Region (MMR).
2. Infrastructure Projects – Including public infrastructure developments & industrial buildings.
3. Hospitality Sector – Construction of luxury hotels & resorts.
4. MEP & O&M Services – Providing additional technical services to completed projects.

Financial Analysis & Trends

Khyati Global Ventures Limited

The financials of Khyati Global Ventures Limited show steady growth. Between FY 2022 & FY 2024, revenue increased from ₹9,362.7 lakhs to ₹10,464.09 lakhs, growth of around 12%. company’s profit after tax (PAT) rose significantly from ₹149.66 lakhs in FY 2022 to ₹253.19 lakhs in FY 2024, indicating compound annual growth rate (CAGR) of 30.07%. Khyati has maintained healthy balance sheet with total assets rising to ₹5,275.97 lakhs in FY 2024. 

Key Financial Metrics:
- Revenue (FY 2024): ₹10,464.09 lakhs
- PAT (FY 2024): ₹253.19 lakhs
- Debt/Equity Ratio (2024): 1.02
- Return on Equity (ROE): 25.58%
- Return on Capital Employed (ROCE): 17.73%

Garuda Construction & Engineering Limited

Garuda Construction & Engineering Limited’s revenue saw slight decline in recent years, falling by 4% between FY 2023 & FY 2024. PAT also dropped by 11%, from ₹40.8 crore in FY 2023 to ₹36.44 crore in FY 2024. Despite this, the company continues to maintain a strong balance sheet, with total asset base of ₹228.49 crore as of FY 2024. Garuda has an impressive ROE of 36.14%, indicating strong financial performance relative to its equity base.

Key Financial Metrics:
- Revenue (FY 2024): ₹154.47 crore
- PAT (FY 2024): ₹36.44 crore
- Debt/Equity Ratio (2024): 0.15
- Return on Equity (ROE): 36.14%
- Return on Capital Employed (ROCE): 46.69%

Strengths of IPOs

Strengths of Khyati Global Ventures Limited

Well-Established Infrastructure: the company operates four offices & 20,000 sq. ft. warehouse in Navi Mumbai, which ensures smooth logistical operations for its export business.

Diverse Product Range: Khyati deals in wide variety of products, including food, non-food FMCG, pharmaceuticals, & festive goods, reducing dependency on any one segment.

Experienced Management Team: Company's promoters have long history in export business, with significant experience in global markets.

Growing Financial Performance: Khyati’s increasing profitability & revenue growth provide solid foundation for future expansion.

Strengths of  Garuda Construction & Engineering Limited

Strong Project Pipeline: Garuda’s order book, valued at ₹1,40,827.44 crore as of September 2024, positions it well for future growth.

Established Track Record: Company has successfully completed various high-profile projects, establishing reputation for timely delivery & quality construction.

Diversified Service Offerings: Garuda offers wide range of construction-related services, including MEP, O&M, & finishing works, enhancing its value proposition.

Experienced Promoters & Management: Led by experienced team, company has robust management framework to execute large-scale projects efficiently.

Valuation

Khyati Global Ventures Limited

- Pre-IPO EPS (₹): 4.27
- Post-IPO EPS (₹): 5.43
- Pre-IPO P/E (x): 23.19
- Post-IPO P/E (x): 18.24
- Market Cap Post-IPO: ₹69.08 crore

Garuda Construction & Engineering Limited

- Pre-IPO EPS (₹): 4.87
- Post-IPO EPS (₹): 4.52
- Pre-IPO P/E (x): 19.49
- Post-IPO P/E (x): 21.03
- Market Cap Post-IPO: ₹883.9 crore

Future Outlook Khyati Global Ventures Limited

With the company’s growing global reach & strong financial performance, Khyati Global Ventures is well-positioned to expand its export business. Its diverse product range & ability to tap into growing demand for Indian-origin FMCG & pharmaceutical products globally provide ample room for growth. IPO proceeds could help the company scale its operations & explore newer markets.

Future Outlook Garuda Construction & Engineering Limited

Garuda Construction’s robust project pipeline & expertise in residential & infrastructure construction give it solid foundation for future growth. company’s order book is strong, with projects spread across multiple states. As Indian government pushes for more infrastructure development, Garuda stands to benefit from increased project demand.

Conclusion

Both Khyati Global Ventures Limited & Garuda Construction & Engineering Limited bring unique opportunities to table. While Khyati focuses on growing global demand for Indian FMCG & pharmaceutical products, Garuda stands to benefit from India’s expanding infrastructure development. Both companies have solid financials, experienced management, & growth potential. For investors looking to diversify, these IPOs provide options in two high-growth sectors—exports & construction. decision to invest will depend on individual risk appetite & preference for sector exposure.