| Reviewer | Recommendation |
| IPOWatch | May Apply |
| Swastika Investmart Ltd | Apply |
| SMC Global | Neutral |
| Dilip Davda | Not Rated |
The firm operates its business via 2 ways: manufacturing of transformers and engineering, procurement, and construction (EPC). Kanohar Electricals is one of the 5 companies in India to have the short-circuit test certification for 500 MVA 400 kV transformers used in the power transmission industry.
For medium-term investment, this IPO might be a good fit. Overall, investors should carefully evaluate the companyâs fundamentals, strengths, risks, and growth prospects before deciding whether to invest.
Strengths:
- Kanohar Electricals is one of the leading manufacturers of transformers across various capacities ranging from 132 kV to 400 kV, and serves high-growth industries.
- The firm has passed short-circuit testing of transformers up to 500 MVA 400 kV, which allows it to win large, high-value contracts.
- The companyâs order book increased from âč595.85 crore in FY24 to âč1,818.32 crore in FY2026.Â
- In FY26, the revenue grew at a 53.72% CAGR to âč653.84 crore from âč276.69 crore in FY24. EBITDA also grew at a 140.96% CAGR to âč180.42 crore from âč31.07 crore in the same year.Â
Weaknesses:Â
- In FY26, about 83% of the companyâs revenue is derived from the manufacturing of transformers. Any decline in the demand for transformers can negatively affect the business and cash flow.
- Around 93.16% of Kanohar’s revenue comes from the top 10 customers in FY26. Any decrease in the demand for transformers from these top customers can adversely impact the overall business and financial condition.
- The business requires high working capital to operate its daily operations. Unable to receive enough funds to run its business, or not able to get loans at reasonable interest rates, can impact future business growth.
DisclaimerÂ
Investors are advised to make their own decisions and apply entirely at their own risk. This article is written using information from the companyâs RHP (Red Herring Prospectus) data and online sources. If you have any queries, kindly contact the IPO Watch Team.
One Response
Think Jagat Jishi’s analysis and advice are sharp, well placed and more importantly not camouflaged in long words. Thanks