Ztech India IPO (SME) Overview

Z-Tech (India) Limited designs civil engineering products and provides state-of-the-art specialty Geo-Technical Solutions for infrastructure and civil construction projects in India. They are also actively involved in the waste management sector, focusing on creating theme parks using recycled scrap materials. Ztech India IPO aims to raise Rs 37.30 crores. The issue is entirely a fresh issue of 33.91 lakh shares.

IPO opensMay 29, 2024
IPO ClosesMay 31, 2024
IPO Size (Rs.)₹37.30 Cr
IPO Size (shares)3,391,200 shares
BreakupFresh issue only
Face Value:₹ 10
IPO Price in Rs :₹104 to ₹110 per share
Minimum Lot1200 Shares
Listing AtNSE SME
QIB~50 %
NII Quota~15%
Retail Quota~35%
 Lead ManagerNarnolia Financial Services Ltd 
RegistrarMaashitla Securities Private Limited
Market maker Nvs Brokerage.

About Ztech India IPO:

  • The current Promoters got control of the company in 2020.
  • Company originally designs civil engineering products and services with state‐of‐the‐art specialty in Geo‐ Technical Specialised Solutions in the field of infrastructure and civil construction projects to India.
  • It includes a range of techniques, methodologies, and technologies aimed at optimizing the performance and stability of structures built on or in the ground. In addition to this, they are actively engaged in the waste management sector, where focus involves creating theme parks through the utilization of recycled scrap materials.
  • Simultaneously, they are dedicated to implementing innovative waste water management solutions for industrial units, employing the cutting-edge GEIST technology. This dual commitment underscores holistic approach to sustainable practices, transforming discarded materials into recreational spaces while efficiently managing industrial wastewater through state-of-the-art technology.
  • Company is engaged in providing innovative, safe and eco-friendly engineering solutions to our customers. These solutions include three major categories:
    • Sustainable Theme Park Development
    • Industrial Waste Water Management
    • Geo Technical Specialised Solutions
  • Sustainable Theme Park Development includes but not limited to creating beautification artwork and infrastructure, landscape designing, sourcing and execution of waste materials and transforming them into meaningful and attractive show pieces. It involves incorporating environmentally friendly practices and responsible resource management throughout the planning, design, and operational phases of the project. It goes beyond traditional development approaches by prioritizing ecological, social, and economic considerations.
  • Industrial Waste Water Management involves the systematic treatment and responsible handling of wastewater generated by industrial processes. The goal is to mitigate the environmental impact of potentially harmful substances, promote water conservation, and even extract valuable resources from the wastewater. Under this segment, .
  • Geo Technical Specialised Solutions includes but not limited to reinforcement of soil walls and slopes, slope stabilization, retaining structures, ground improvement, riverside erosion control, coastal protection and similar activities.
  • The promoters of the company are Ms Sanghamitra Borgohain and M/s Terramaya Enterprises Private Limited.

Financials: Ztech India IPO

Particulars/  Rs. LacsMar 31, 2024Mar 31, 2023Mar 31, 2022Mar 31, 2021
Revenue from operation6731.822,572.503,063.922,348.11
Profit after Tax779.15195.57.4269.54
Share Capital940.6110110110
Net Worth2191998.95802.24793.82
EPS Basic and Diluted8.6217.880.775.87
Total borrowings    
– Long Term77.8736.5120.1937.29
– Short Term52.9734.5251.5556.46
Post issue Share Capital1280   
IPO price110.0   
EPS Fy231.5   
PE Fy2372.0   
EPS Fy246.1   
PE Fy24 18.1   
Market cap in Lacs14,080   
Market cap / Sales2.09   

Anchors: Ztech India IPO

Ztech India IPO: Salient Points

  • In the area of waste water treatment, the increasing demand driven by stricter pollution control norms and rising costs presents exciting opportunities.
  • In 2020, company acquired the GEIST technology from Earl Exim Private Limited. The GEIST technology comprises of a bouquet of technologies which includes freeze crystallization, calcium magnesium recovery, stable bleaching powder technology, selective extraction and monochloro acetic acid, and caters various industries that excrete the chemical laden water.
  • From the net proceeds of IPO of Rs.37.3 Cr. raised, 23.75Cr for working capital and rest for general and issue expenses.
  • Key Performance Indicators
Revenue from operations 6731.822,572.503,063.922,348.11
Growth in Revenue from Operations 162%(16.04) %30.48 %(19.34) %
EBITDA (%) Margin17%11.73 %1.03 %2.99 %
EBITDA Growth Period on Period42%859.97 %(55.28) %(50.17) %
ROCE (%)45.73%25.30%1.79%11.10%
Current Ratio1.871.561.551.60
Operating Cash flow-149.998.33167.53(82.49)
ROE/ RoNW36%19.57 %0.93 %8.76 %
  • Dependence on Govt tenders is not very high.
ParticularsMarch 31, 2024March 31, 2023March 31, 2022March 31, 2021
Amount% of total revenueAmount% of total revenueAmount%  of total revenueAmount%  of  total revenue
Government Tenders999.3914.85%79.153.08%91.883.00%532.8622.69%
Other            than Government Tenders  5,732.43  85.15%  2,493.35  96.92%  2,972.04  97.00%  1,815.25  77.31%
  • Clients
  • Bifurcation of Revenues from various streams:
 period ending on March 31, 2024%       of total revenueperiod ending on March 31, 2023%       of total revenueperiod ending on March 31, 2022%       of total revenueperiod ending on March 31, 2021%       of total revenue
Geo Technical Specialized Solutions    1,890.79    28.09%    1,741.56    67.70%    2,585.81    84.40%    2,348.11    100.00%
Industrial WasteWater Management    915.64    13.60%    482.35    18.75%    478.12    15.60%      
Sustainable Theme                Park Development    3,925.39    58.31%    348.59    13.55%            
Total6,731. 82100.00%2,572.50100.00%3,063.92100.00%2,348.11100.00%
  • They started providing Sustainable Theme Park Services in F.Y. 2023 only. Despite being the new introduced services, it contributes 58.31% to their total revenue for the year ended on March 31, 2024
  • Peers: No exact
Company/ FY24 figuresCMP Rs.Revenue Rs. CrNet Profit Rs. CrNPM (%)PEMacp/salesRoNW(%)
Z Tech India Limited11067.307.7911.6%18.12.0926.37%
Ion Exchange (India)5092,348195.008.3%38.21.488.15%
Wonderla Holidays84948315832.7%30.49.949.48%
H.G. Infra Engineering1,5091,70819011.1%18.71.839.23%
Nicco Parks & Resorts14518.324.9427.0%27.48.5420.13%
NCC Limited2866,4852393.7%24.50.873.61%
  • They intend to diversify into Fast Forward Sports Arena and Pet Parks within the theme park segment, expand internationally, and explore the creation of Waste to Art Products.
  • In the areas of Sustainable Theme Park Development, Waste Water Management, and Geo Technical Solutions, they have done over 30 successful projects.
  • Their projects in sustainable Parke development include projects like Shaheedi Park, ITO, Waste to Wonder Park Phase-2, Sarai Kale Khan, Bharat  Bhushan  Park Phase-2, Punjabi Bagh, Happiness Park, Lucknow, UP Darshan Park, Gomti Nagar, Lucknow etc.
  • These theme parks are in joint venture with municipal corporations. .They provides recreation and play activities in the theme park and charges an entry fee of an average ₹100 per person.
  • They have a healthy Total Order Book which stands at Rs.168Cr. with 50% being contributed by Park Development .
  • Ztech India IPO is coming at a PE ratio of 18.1x (fy24 earnings) .
  • I intend to apply in Ztech India IPO subject to availability of funds. Their presence in theme park sector, rapidly growing water treatment technology and geosynthetic markets, offers good potential.
  • GMP as reported on social media has been Rs. 75 (68%)
  • Narnolia Financial Services Ltd is the Lead Manager and has a reasonable record. Past issues handled by them include Radiowalla Network Limited, Addictive Learning Technology Limited, Akanksha Power and Infrastructure Limited, Supreme Power Equipment Limited,WomanCart Limited, Inspire Films, Cellecor Gadgets, Yudiz Solutions Limited, Drone Destination.
  • SME IPO are much more risky and volatile than mainboard IPOs and may not be suitable at least for new retail investors.
  • 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.

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