Should You Consider Investing in Yash Highvoltage IPO?

Yash Highvoltage Limited, a leader in the transformer bushing manufacturing industry in India, is set to launch its Initial Public Offering (IPO) to raise funds through a combination of a fresh issue and an offer for sale. Yash Highvoltage IPO comprises a fresh issue of 64.05 lakh shares and an offer for sale of 11.3 lakh shares, totalling 75.35 lakh equity shares. The funds from the Yash Highvoltage IPO will support the company's plans to set up a new manufacturing facility and cater to its general corporate purposes. Yash Highvoltage IPO opens for subscription on 12th December 2024, and closes on 16th December 2024. Post-allotment, the equity shares will list on the BSE SME platform.

Why Should You Consider Investing in Yash IPO?

• Unique Market Position: Yash Highvoltage is uniquely positioned in the Indian transformer bushing market, offering specialised products like Oil-Impregnated Paper (OIP), Resin-Impregnated Paper (RIP), and Resin-Impregnated Synthetic (RIS) bushings. These products serve critical applications in the power infrastructure sector, ensuring consistent demand.
• Robust Manufacturing Capacity: The company’s state-of-the-art facility in Vadodara, Gujarat, has a production capacity of 7,000 bushings annually, which includes 3,700 units of OIP bushings, 3,000 units of RIP bushings, and 300 units of high-current bushings.
• Strong Financial Performance: Between FY2023 and FY2024, the company demonstrated a 20.43% increase in revenue and a 5.61% rise in profit after tax (PAT). The company’s Return on Equity (ROE) stood at an impressive 32.51% for FY2024, indicating robust financial health.
• Growing Demand for Transformer Bushings: With increasing investments in India’s power infrastructure and renewable energy projects, the demand for high-quality bushings is on the rise. This trend places Yash Highvoltage in a favorable position to capitalize on market opportunities.
• Experienced Leadership: Led by its promoter, Mr. Keyur Girishchandra Shah, the company benefits from strong leadership with extensive experience in the transformer bushing industry.
• Low Debt-to-Equity Ratio: The company’s debt-to-equity ratio of 0.17 as of FY2024 reflects a healthy balance sheet, ensuring financial stability.

Yash IPO Key Details

• IPO Open Date: 12th December 2024
• IPO Close Date: 16th December 2024
• Face Value: ₹5 per share
• Price Band: ₹138 to ₹146 per share
• Lot Size: 1,000 shares
• Total Issue Size: 75.35 lakh shares
• Fresh Issue: 64.05 lakh shares
• Offer for Sale: 11.3 lakh shares
• Listing Platform: BSE SME
• Promoter: Mr. Keyur Girishchandra Shah

Yash IPO Financials

The company's financial data from March 2022 to June 2024 demonstrates consistent growth across all key metrics. Total assets increased steadily from ₹4,315.83 lakhs in March 2022 to ₹8,084.36 lakhs by June 2024, nearly doubling over this period and reflecting substantial business expansion. Revenue showed impressive growth from ₹6,537.90 lakhs in FY22 to ₹10,912.25 lakhs in FY24, with the first quarter of FY25 (June 2024) already contributing ₹2,777.84 lakhs. Profitability remained strong with PAT rising from ₹871.23 lakhs in FY22 to ₹1,206.27 lakhs in FY24, while Q1 FY25 recorded ₹312.75 lakhs. The company's financial health is further evidenced by its growing net worth, which increased from ₹2,450.65 lakhs to ₹4,526.20 lakhs over the period, indicating strong internal accruals and sustainable business operations.

Yash Highvoltage Position and Growth Prospects

Operating in a high-barrier industry, Yash Highvoltage has established itself as a leader in transformer bushing manufacturing. The company’s focus on innovation and quality positions it well in a growing market. The global and domestic demand for efficient power infrastructure further strengthens its growth prospects.
 

Yash Highvoltage Competitive Strengths and Advantages

• Established Reputation: The company’s proven track record of delivering high-quality products has earned it a trusted name in the industry.
• Diverse Product Portfolio: Yash Highvoltage offers a comprehensive range of transformer bushings catering to varied applications, ensuring diversified revenue streams.
• In-House Testing Facilities: The company’s in-house testing facilities ensure stringent quality control, enhancing product reliability.
• Industry Growth Drivers: Increasing investments in power grid expansion and renewable energy projects drive demand for the company’s offerings.
• Technological Edge: The company’s commitment to innovation and advanced manufacturing processes keeps it ahead of competitors.

Yash Highvoltage Risks and Challenges

• Market Competition: The company faces competition from established players in the transformer bushing market, which could impact its market share.
• Economic Sensitivity: The company’s performance is closely tied to the health of the power sector and economic conditions.
• Capacity Utilization: The company’s profitability may depend on optimal utilization of its manufacturing facilities.
• Sectoral Dependency: A significant portion of the company’s revenue is derived from the transformer bushing segment, posing risks of sectoral dependency.

Conclusion – Should You Invest in Yash Highvoltage IPO?

Yash Highvoltage IPO offers an opportunity to invest in a company with a solid foundation in the power infrastructure sector. Its robust financial performance, diverse product portfolio, and strong market positioning make it an attractive investment option. However, potential investors should carefully consider risks like market competition and economic sensitivity before making a decision. For those with a long-term investment horizon, Yash Highvoltage IPO presents a promising opportunity to participate in India’s growing power infrastructure market.
 

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Investors are advised to consult financial advisors before making investment decisions.