B.R. Goyal Infrastructure Limited is engaged in the business of construction of infrastructure projects such as roads, highways, bridges and building.
B.R.Goyal IPO intends to raise ₹85.21 Crores. The issue is entirely a fresh issue of 63.12 lakh shares..

About: B.R. Goyal Infrastructure Limited

• B.R. Goyal Infrastructure Limited is primarily involved in the construction and development of infrastructure projects, including roads, highways, bridges, and buildings. It began as a partnership firm in 1986, later becoming a private limited company in 2005 and then a public limited company in 2018.
• The company’s business operations encompass:
  • Civil Construction: Providing Engineering Procurement Construction (EPC) services to government departments, focusing on roads, highways, commercial complexes, industrial parks, and housing projects.
  • Ready-Mix Concrete (RMC): Manufacturing RMC with a capacity of 1.80 lakh cubic meters per year.
  • Wind Power Generation: Operating a 1.25 MW wind power facility in Jaisalmer, Rajasthan.
  • Toll Collection Contracts (TCC): Managing toll collection contracts with the National Highways Authority of India (NHAI).
  • Residential Plotting Projects: Undertaking residential plotting projects.
• The company’s promoters include Mr. Brij Kishore Goyal, Mr. Balkrishna Goyal, Mr. Gopal Goyal, Mr. Rajendra Kumar Goyal, Mr. Yash Goyal, Mr. Uppal Goyal, and M/s. B. R. Goyal Holdings Private Limited.

Financials: B.R. Goyal Infrastructure Limited

Anchors: B.R. Goyal Infrastructure Limited IPO 

B.R. Goyal Infrastructure Limited IPO : Salient Points

• Use of Net proceeds:
  • Capital Expenditure: The company intends to use ₹802.00 Lakhs for capital expenditures, specifically for purchasing vehicles to support its EPC services.
  • Working Capital: A significant portion, amounting to ₹4200.00 Lakhs, is allocated to meet the company’s working capital requirements.
  • Inorganic Growth and General Corporate Purposes: A portion of the funds will be used for inorganic growth through acquisitions and other strategic initiatives, as well as for general corporate purposes.

• Revenue Bifurcation :
  EPC Services: 68.18%.
  Toll Collection: 26.53%.
  Sale of Products: 3.27%.
  Machine Hire & Transportation: 0.36%.
  Wind Power Generation: 0.09%.
  Plot Sales: 0.91%.
  Business Auxiliary Services: 0.67%
• As of September 30, 2024, the company’s assets included 199 construction equipment, commercial vehicles, and plant and machinery.
• The company had 402 employees in EPC projects and 212 in TCCs. Its long-term borrowings were ₹2600.00 lakhs.
• The company has a credit rating of CARE BBB+; Stable for long-term facilities and CARE A3+ for short-term facilities.
• Over the years company has extended its geographical reach:
• Geographical Revenue Bifurcation from 8 states:
  Madhya Pradesh: 41.21%.
  Mizoram: 25.39%.
  Maharashtra: 10.13%.
  Manipur: 8.46%.
  Gujarat: 4.24%.
  Haryana: 6.09%.
  Punjab: 3.4%.
  Uttar Pradesh: 0.98%.

Clients:

• Peers:

• Margins have gone down as margin is lower in toll collection projects around 1-2%.
• As on September 30, 2024, Company has 26 ongoing projects in the roads, bridges, building and TCC sector which includes construction, improving, widening, strengthening, upgradation and rehabilitation of two, four and six lane highways construction of high-level bridge and construction of road network and an unexecuted order Book of Rs.873.39 crores which comprises 24 EPC (road & building) projects and 2 toll projects.
• Working capital cycle is 55-60 days. Bid mainly for central govt funded projects.
• Management expects to deliver 20-25% CAGR Growth while maintaining margins.
• Q1 revenues.
• About lower revenues and margins in Q1 company has indicated that ratio of H1 to H2 is 30:70 and elections and rains led to lower
• PE Fy24: 18x
• Receivables are low.
• I intend to apply in B.R. Goyal Infrastructure Limited IPO. Good order book of Govt projects about 2x the EPC revenues. Have own machinery and does not go for subcontracting. Has been able to complete projects in time and has expanded into different states. Nothing extraordinary and if allotted I will sell on listing.
• GMP as reported on social media is around Rs. 60 (44.%).
• Lead Manager Beeline Capital Advisors has a fair track record.
• SME IPOs are quite volatile and new retail investors need to exercise considerable caution.
• This post is exploratory and educational purposes only. Please do your own diligence before investing in SME IPOs like this.
• Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . I have in the past cleared some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2) Examination. This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors. I may have bias/vested interest in covered Stock/Mutual Funds/NCD etc. due to my own investment or leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Do check the data from company’s RHP and exchanges before making any decision. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.