Goel Construction Company IPO Analysis
Company Overview
Goel Construction Company is an established construction contractor specializing in industrial plants, founded in 1997. The company focuses on cement plants, power plants, dairy plants, and other industrial facilities with a strong track record of completing projects across multiple states.
Key Highlights:
- 28 years of experience in industrial construction
- Completed 19 projects worth ₹1,13,499.37 lakhs in last 4 years
- Strong order book of ₹59,660.28 lakhs (as of June 30, 2025)
- Pan-India presence across 12 states
- 6 projects with value exceeding ₹10,000 lakhs each
- IPO Size: ₹95.14 Crore
Financial Performance Trend Analysis
| Metric | FY25 | FY24 | FY23 | 2-Yr CAGR | FY24-FY25 YoY | FY23-FY24 YoY |
|---|---|---|---|---|---|---|
| Total Income (Cr) | 594.34 | 388.79 | 272.94 | 47.58% | 52.87% | 42.44% |
| PAT (Cr) | 38.32 | 22.64 | 14.30 | 63.82% | 69.26% | 58.32% |
| EBITDA (Cr) | 57.91 | 36.29 | 23.41 | 57.27% | 59.58% | 55.02% |
| Net Worth (Cr) | 131.59 | 93.27 | 70.62 | 36.50% | 41.09% | 32.07% |
Exceptional Revenue Growth: Total Income surged from ₹272.94 Cr (FY23) to ₹594.34 Cr (FY25), representing a remarkable 2-year CAGR of 47.58%. Both FY25 (52.87% YoY) and FY24 (42.44% YoY) showed strong growth momentum.
Profitability Expansion: PAT grew significantly from ₹14.30 Cr (FY23) to ₹38.32 Cr (FY25) – 2.68x growth with an impressive 2-year CAGR of 63.82%. FY25 PAT grew 69.26% YoY, building on the 58.32% growth in FY24. Margins remained stable with PAT Margin at 6.50% and EBITDA Margin at 9.81%.
Peer Comparison
| Metric | Goel Construction | Power Mech | Suntech Infra | Ahluwalia |
|---|---|---|---|---|
| EPS (Basic) | 33.72 | 95.05 | 7.98 | 30.08 |
| RoNW | 34.09% | 14.27% | 24.05% | 11.19% |
| P/E (x) | 7.77 | 33.03 | 8.77 | 31.52 |
| P/BV | 2.26 | N/A | N/A | N/A |
Goel Construction demonstrates superior return ratios compared to all peers with RoNW of 34.09%, significantly higher than competitors. The company trades at a substantial valuation discount with P/E of 7.77 compared to most peers.
Market Sentiment
The Grey Market Premium (GMP) of ₹58 (22.05% over IPO price) indicates strong investor interest. The estimated listing price of ₹321 suggests potential for excellent listing gains.
Strengths
- Exceptional growth trajectory (48% revenue CAGR)
- Outstanding return ratios (RoNW 34.09%, ROCE 33.69%)
- Strong order book of ₹59,660.28 lakhs providing visibility
- Low debt levels with Debt/Equity of 0.22
- Valuation discount compared to industry peers
Concerns
- Construction sector cyclicality and execution risks
- Working capital intensive business model
- Dependence on industrial capex cycles
Final Recommendation
Weighted Score: 8.7/10
Goel Construction presents an outstanding investment opportunity with exceptional financial metrics, strong growth trajectory, and reasonable valuations. The company’s superior return ratios, low debt, strong order book, and valuation discount to peers make it highly attractive.
Recommendation: STRONG APPLY for both short-term (excellent GMP) and long-term investors. The company’s strong positioning in industrial construction, impressive financial performance, and reasonable valuations create a compelling investment proposition.
Note: Industrial construction sector benefits from infrastructure development but is subject to economic cycles and execution risks.
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