Teerth Gopicon SME IPO GMP, Review

Teerth Gopicon SME IPO GMP Review: Teerth Gopicon is planning an IPO for INR 44.40 crores, consisting of a new issue of 40 lakh shares. The funds that are raised will be used to cover the company’s working capital requirements as well as other business purposes.

Teerth Gopicon SME IPO – Company Profile

Teerth Gopicon is a Madhya Pradesh-based engineering construction and development company that specializes in road construction, sewage, and water distribution projects. The company has also worked as a subcontractor, constructing residential complexes in Indore. As a registered civil contractor, the company has worked for numerous federal and state governments, including ISCDL, IMC, USCL, UMC, MPJNM, and others, as well as for the private sector.

The business has completed a wide range of civil engineering projects, including building construction, water supply, pipeline, sewerage network, sewage treatment plant, nalla tapping work, reuse network, head tanks, GSR, road work, lake rejuvenation, and so on.

The promoters of the company are Maheshbhai Kumbhani, Chandrikaben Kumbhani, and Pallav Kumbhani.

Teerth Gopicon SME IPO – Important Dates

Teerth Gopicon IPO Date	April 8, 2024 to April 11, 2024
Teerth Gopicon IPO Listing Date	April 16, 2024
Teerth Gopicon IPO Price	INR 111 per share
Teerth Gopicon IPO Lot Size	1200 Shares
Teerth Gopicon IPO Total Issue Size	INR 44.40 crores
Teerth Gopicon IPO Basis of Allotment	April 12, 2024
Teerth Gopicon IPO Initiation of Refunds	April 15, 2024
Teerth Gopicon IPO Credit of Shares to Demat	April 15, 2024
Teerth Gopicon IPO Issue Type	Fixed Price Issue
Teerth Gopicon IPO Listing At	NSE SME

Teerth Gopicon SME IPO – Financials

The company’s financial data is uneven, but overall positive. With sustained sales growth, increased profitability measures such as RoNW and EPS, and a strengthened financial sheet as evidenced by lower debt, investment in the IPO could be considered after careful industry and market study.

Revenue Growth: The company’s revenue growth from ₹3,116.84 lakhs in March 2022 to ₹3,737.02 lakhs in September 2023 shows an upward trend in sales.
Equity and Liabilities: Equity has continuously increased, implying prospective investor confidence. However, liabilities have escalated, necessitating constant inspection to maintain long-term financial stability.
Profitability: Profit after tax increased dramatically from ₹15.27 lakhs in March 2022 to ₹339.52 lakhs in September 2023, indicating better operational efficiency and profitability.
Return on Net Worth (RoNW): RoNW has risen significantly from 2.50% to 30.09%, demonstrating better use of shareholders’ funds and more profitability.
Earnings Per Share (EPS): The diluted EPS increased from ₹0.19 to ₹4.24, demonstrating greater profit per share.
Net Asset Value (NAV) per Equity Share: The NAV per equity share has likewise increased over time, showing that owners may benefit from growing value.
Financial Health Ratios: The current ratio has marginally declined, reflecting a fall in short-term liquidity. However, the ratio of debt to equity has greatly improved, showing a lower reliance on borrowed financing.

Teerth Gopicon SME IPO – Fundamental Analysis

Particulars	As of 31st March 2022	As of 31st March 2023	As of 30 September 2023
Revenue (₹ in lakhs)	3,116.84	3,907.66	3,737.02
Equity (₹ in lakhs)	609.49	788.70	1,128.23
Expenses (₹ in lakhs)	3,087.90	3,663.32	3,271.39
Profit and Loss After Tax (₹ in lakhs)	15.27	179.22	339.52
RoNW (%)	2.50	22.72	30.09
Diluted EPS only (₹)	0.19	2.24	4.24
NAV per Equity Share (₹)	12.19	15.77	22.56
Total Assets (in lakhs)	4,277.16	4,743.30	7,541.30
Total Liabilities (in lakhs)	3,667.67	3,954.60	6,413.07
Current Ratio (In times)	1.73	1.23	1.13
Debt Equity ratio (in times)	2.24	0.43	0.48

Teerth Gopicon Limited IPO Peer Comparison

Teerth Gopicon Limited has a moderate total income and RoNW. Man Infraconstruction Limited has a big total income, a high PE ratio, and a reasonable EPS. ITD Cementation India Limited has exceptional total income, EPS, and NAV per equity share. Likhitha Infrastructure Limited has a strong EPS and RoNW. Udayshivakumar Infra Limited performs modestly across measures.

Company	Total Income(₹ in lakhs)	Face Value (₹)	EPS (₹)	PE Ratio (in times)	RoNW (%)	NAV per Equity Share (Basic) (₹)
Teerth Gopicon Limited	3907.06	10	3.58	NA	22.72	15.77
Man Infraconstruction Limited	88,096.76	2	4.47	45.07	14.61	30.60
ITD Cementation India Limited	470,058.03	1	7.23	38.71	10.04	72.04
Likhitha Infrastructure Limited	35,861.52	5	15.22	18.53	24.01	63.39
Udayshivakumar Infra Limited	28,790.71	10	2.90	13.52	11.13	26.05

Teerth Gopicon SME IPO – Objective

The primary goal is to allocate INR 27.50 crores to meet the business’s working capital intensity. The remaining funds will be allocated to general corporate purposes.

To fund the working capital requirements: The corporation intends to use INR 27.50 crores for this reason because its operation requires a lot of working capital.
General Corporate Purpose: The balance funds will be used to support broad corporate goals such as strategic initiatives, collaborations, joint ventures, and strategic entity/business acquisitions, as well as branding, marketing, and new client referral fees.

Teerth Gopicon SME IPO – Risks and Challenges

Teerth Gopicon’s risks include operational concentration in Madhya Pradesh, dependency on a small number of major clients for income, and the requirement for quick regulatory approvals, which could disrupt corporate operations.

The business is centered on Madhya Pradesh, and any adverse development affecting operations in the state could have a negative impact on the business, financial condition, and operating results.
Five customers account for 100% of total revenue. The loss of any important clients may have a negative impact on the business’s financial state, operating results, and prospects.
The business needs us to seek and renew various registrations, licenses, and permits from government and regulatory bodies, and failure to do so on time may have a negative impact on our operations.

Teerth Gopicon SME IPO – Industry & Market Potential

To achieve its goal of $5 trillion in economic development by 2025, India needs improve its infrastructure. India’s population expansion and economic development necessitate improved transportation infrastructure, which includes investments in roads, trains, aircraft, shipping, and inland waterways. The government has also proposed a $750 billion investment to upgrade railway infrastructure and the Maritime India Vision 2030, which anticipates huge investments in world-class infrastructure development at Indian ports.

India’s logistics industry is predicted to reach US$ 410.75 billion in 2022 and US$ 556.97 billion by 2027, expanding at a CAGR of 6.28%. Within the next five years, India plans to improve its Logistics Performance Index position to 25 and reduce logistics costs from 14% to 8% of GDP, representing a 40% reduction.

Teerth Gopicon SME IPO – Allotment Structure

Teerth Gopicon Limited’s IPO allotment structure has three categories: Retail Individual Investors (RII) for investments under ₹2 lakhs, Other Investors for investments above ₹2 lakhs, and Market Makers.

Retail Individual Investors (RII): These individual investors apply for shares worth less than Rs. 2 lakhs.
Other than retail individual investors: Such applications have a value that exceeds INR 2 lakhs.
Market Maker Reservation: Market makers are allocated a specific percentage or number of shares.