Brief Summary
The primary market chatter by Sunday Investing discusses upcoming IPOs and SME listings. They cover Highway Infrastructure (mainboard), CashUrdrive, Bhadora Industries, Flysbs, Jyoti Global, and Parth Electricals (SMEs). The team shares their analysis, potential risks, and investment views, emphasizing the need for individual research before applying.
- CashUrdrive: Outdoor advertising company, potential for listing gains but entry barriers are low.
- Bhadora Industries: Cable manufacturer, good promoter but long gestation period.
- Flysbs: Private jet service, high growth potential but airline industry risks.
- Highway Infrastructure: Tollway collection and EPC projects, listing play but revenue certainty is low.
- Jyoti Global: Plastic molding, future drone component story but valuations seem high.
- Parth Electricals: Electrical equipment manufacturer, good potential but fully priced.
Opening Remarks
The host welcomes viewers to the primary market chatter, outlining the companies to be discussed: Highway Infrastructure (main board), and five SMEs - CashUrdrive, Bhadora Industries, Parth Electricals, Jyoti Global, and Flysbs. They clarify that Knowledge Realty will not be covered in this session. A disclaimer is given stating that the opinions shared are not qualified advice and viewers should conduct their own research.
CashUrdrive (SME)
CashUrdrive, incorporated in 2009, specializes in outdoor advertising, particularly vehicle advertising. The IPO is ₹61 crore, with ₹57.5 crore being a fresh issue and ₹3.5 crore an OFS. The market cap is ₹230 crore, diluting around 28%. FY25 financials show a revenue of ₹142 crore and a PAT of ₹18 crore, making it around 13x P/E. Sachin explains that CashUrdrive operates in transit and outdoor advertising with a presence in over 11 states, primarily in North India. They have two revenue segments: trade media (78% revenue, 15-20% margin) and exclusive media (22% revenue, 30-35% margin). They are tied up with fleet operators like Everest. The company is also working with the government for EV buses and charging stations. Risks include reliance on advertising budgets, competition from digital platforms, and high employee attrition. IPO proceeds will be used for an in-house printing facility and a real-time campaign tracking app. Post-IPO, the company is coming at around 13 times trailing P/E. The host plans to apply for the IPO, noting limited downside but also limited entry barriers.
Bhadora Industries (SME)
Bhadora Industries, incorporated in 1986, manufactures industrial cables, mainly LT cables, under the brand name Vidut cable. The IPO is ₹55 crore, all of which is a fresh issue, with a market cap of ₹190 crore. FY25 financials show a revenue of ₹111 crore and a PAT of ₹11 crore, making it around 19x trailing P/E. The company aims to move up the value chain and manufacture HT cables. The sector is benefiting from the RDS scheme. The company has a presence in MP and works with clients like L&T and Bajaj Electricals. The plant is operating at close to full capacity. IPO proceeds will be used for a new facility in Indore, expected to go live in October 2026. The host plans to apply for listing gains, but notes the long gestation period.
Flysbs (SME)
Flysbs, incorporated in 2020, is an Indian aviation company specializing in private jet services. The IPO is ₹102 crore with a market cap of ₹389 crore, diluting around 25%. FY25 financials show a revenue of ₹195 crore and a PAT of ₹28.5 crore, making it around 13x P/E. Rohit explains that Flysbs operates an asset-light model, using both dry and wet leases. The IPO aims to add six more dry lease planes. The market is highly regulated, with only 120 private jets in India. The company flies to 26 countries, with 75% of revenue from international charters. The host and Rohit are very bullish on the company, citing the promoter's track record and high growth potential. Risks include airline industry-specific issues and high dilution.
Highway Infrastructure (Mainboard)
Highway Infrastructure, incorporated in 1995, is engaged in tollway collection, EPC projects, and real estate development. The IPO is ₹130 crore, with ₹97.5 crore being a fresh issue and ₹32.5 crore an OFS. The market cap is ₹502 crore. FY25 financials show a revenue of ₹504 crore and a PAT of ₹22 crore, making it around 23x P/E. Tanmay explains that the company operates and manages tollways and executes EPC projects. Toll management projects are typically one-year contracts. The company is raising funds for working capital and general corporate purposes. The host is not very enthusiastic about the company, citing a lack of revenue certainty and high working capital requirements.
Jyoti Global (SME)
Jyoti Global, incorporated in 2004, specializes in plastic molding solutions. The IPO is ₹35.5 crore, with ₹28.5 crore being a fresh issue and ₹7 crore an OFS. The market cap is ₹131 crore, diluting around 30%. FY25 financials show a revenue of ₹93 crore and a PAT of ₹6 crore, making it around 22x P/E. The company manufactures plastic containers, automotive parts, toys, and drone components. The IPO is being done to bring in unit 3, doubling the capacity. The new generation is bringing in a new angle by manufacturing parts for drones and defense. The company has multiple orders for defense and aerospace with an order book of ₹21 crore. The host feels the valuations are high, but the drone component story is interesting.
Parth Electricals (SME)
Parth Electricals, established in 2007, manufactures electrical equipment such as medium voltage switchgear panels and vacuum circuit breakers. The IPO is ₹50 crore, all of which is a fresh issue, with a market cap of ₹232 crore, diluting around 20%. FY25 revenue is ₹176 crore and PAT is ₹10 crore, making it around 23x P/E. Sachin explains that the company operates in the medium voltage segment, with 75% of revenues from ring main units (RMU). The company is benefiting from the RDS scheme and smart city initiatives. IPO proceeds will be used for a gas-insulated switchgear facility and an Odisha facility. The host feels the company is fully priced.
Closing Remarks
The host concludes the session, thanking everyone for joining. They mention that next week's session will likely cover JSW Cement and other interesting issues. They also briefly discuss JSW Prime Office, noting it's a complex company that requires careful analysis before making any decisions.
