Tunwal E-Motors Limited IPO Message Board (Page 7)

Investing should not be done on QIB alone. Analyze the company fundamentals and valuation and growth prospects.

If I am not wrong, Atmasco also did not have QIB but listed with 20% premium and rallied more than 400% in less than 6 months, what else does one expect in such short span of time.

KP green (listed this year) GMP was also in single digits (5% premium) and listed with 30% premium and rallied more than 400% in less than 3 months.

I have done my analysis of Tunwal and will be posting details tomorrow. This may not rally 400% in short period but can easily double in couple of months.

​@Lokesh Chiru  🤘🤘🤘

​@Lokesh Chiru  100% agree with you... Very well said.....

​@Lokesh Chiru Will eagerly wait for your analysis

​@Lokesh Chiru Waiting for your analysis.

Based on FY24 numbers:-
1. PE=21 whereas its peer Wardwizard PE=104, so this is trading very reasonable valuation.
2. ROE (Return on Equity)=57
3. ROCE (Return on Capital Employed)=59
4. EBITDA and PAT margins are 17% and 11.3% respectively which are much better than peers.
5. Debt/Equity=1 and after IPO proceeds it will be 0.5
6. PAT has grown from 3.7 cr in FY23 to 12 cr in FY24 which is 320% growth.
7. Revenue has grown from 76 cr in FY23 to 105 cr in FY24 which is 38% growth.
8. Trade receivable days are very good.
9. Their business is spread across lndia (North-32%, South-12%, East-6%, West-50%) thereby avoiding risks.
10. Mcap-> 326 cr which is 3 times FY24 which is very reasonable.
11. Capacity utilzation is 55% so no need of immediate Capex requirements.

Notes:-
1. EV sector is sunrise sector like Renewable energy (Solar, Wind).
2. Any EV related announcement in the budget will be icing on the cake for this company.
3. Price point of vehicles is very good and as majority of Indians are price consicous due to family commitments this company has huge runaway for growth provided they execute their strategy well.
4. If it lists as per GMP it is providing very good opportunity for medium/long term investors.
5. Very few listed companies in the SME space from EV sector and hence demand scarcity premium.

As the saying goes market rewards trader with small gains but investor with hefty gains provided u invest in good company at a reasonable price.

Good analysis, thank you @Lokesh Chiru

Good one lokesh. Keep it up.

​@Crow sir , so good and happy to see you back , where have you been , hope all is good with you and family... please keep posting your valuable insights here ...