Anand Rathi backs Kanohar Electricals IPO for long term gains
Research firm Anand Rathi is giving a thumbs up to the Kanohar Electricals IPO, recommending it for those looking at long-term gains.
Kanohar, around since 1972, builds transformers and operates an EPC business, undertaking engineering, procurement and construction work in the power transmission and distribution sector, and caters to railways and renewable energy sectors.
Kanohar builds transformers and EPC projects
Kanohar runs two main businesses: making custom transformers and managing turnkey EPC projects like substations and high-voltage lines.
With about 54 years of experience, they're seen as reliable in the industry.
While the IPO is valued at a premium to Transformers & Rectifiers (India) Limited at 32.2x P/E and 20.8x EV/EBITDA, implying a post-issue market capitalization of ₹50,046 million at the upper price band, Anand Rathi believes the premium is supported by Kanohar's superior recent growth and profitability profile.