Valplast wants ₹51–54 per share, valuing itself at ~₹106 Cr market cap. The IPO is ₹28.1 Cr fresh issue, no promoter exit. FY25 revenue fell 1% to ₹64.5 Cr, and PAT slipped 6% to ₹6.1 Cr. That’s like ordering a bigger pizza but getting fewer toppings. ROE still decent at 22.4%, EBITDA margin a healthy 20%. Debt jumped to ₹22.6 Cr (from ₹6.2 Cr a year ago), Debt/Equity now 0.74. Pre-IPO EPS ₹4.24 drops to ₹3.11 post issue, pushing P/E to ~17.3x.
So, dear Watson: is this a waterproof story or will investors find cracks after listing?
2. Introduction
In infrastructure, “waterproofing” is a metaphor for both concrete and balance sheets. Valplast, born in 2014, has spent a decade patching cracks in tunnels, railways, and defense projects. Their claim: “We can drill tunnels, inject grout into your foundations, and stop your basement from flooding.”
IPO funds? Largely for working capital (₹14 Cr) and machinery (₹5 Cr). Translation: “We need more cash to finish government contracts and a few shiny machines for tender presentations.”
But FY25 numbers show stagnation: revenue flat, PAT dipping. In infra, flat numbers often mean delayed payments, project overruns, or both. So is this IPO a foundation stone or a pothole trap?
3. Business Model – WTF Do They Even Do?
Services portfolio:
Waterproofing & Injection Grouting: Seal leaks in tunnels, basements, dams. Basically “Fevicol” at industrial scale.
Tunnels: Drill, blast, stabilize, and pray the mountain doesn’t collapse.
Slope Stabilization & Retaining Walls: Because monsoons + Indian hills = landslides.
Clients: Defense, Railways, Infra PSUs. Meaning payments may arrive fashionably late, like an Indian wedding baraat.
Competitive edge: experience, staff, and multi-state presence (9 states). But infra is a crowded tender bazaar. Margins depend on lowest bid, not fancy brochures.
4. Financials Overview
Metric
Latest Qtr (Q4FY25)*
YoY Qtr (Q4FY24)
Prev Qtr (Q3FY25)
YoY %
QoQ %
Revenue (₹ Cr)
16.1
16.3
16.0
-1.2%
0.6%
EBITDA (₹ Cr)
3.2
2.5
3.1
28.0%
3.2%
PAT (₹ Cr)
1.5
1.6
1.5
-6.3%
0.0%
EPS (₹)
1.1
1.2
1.1
-6.3%
0.0%
*Estimated quarterly split.
Auditor’s note: Top line stagnant, bottom line eroded. Cost controls saved EBITDA, but finance costs ate PAT. Classic infra story.
5. Valuation Discussion – Fair Value Range
a) P/E Method
FY25 PAT = ₹6.1 Cr.
Post shares = 1.96 Cr.
EPS = ₹3.11.
Infra SMEs trade 12x–16x.
Fair Value = ₹37 – ₹50.
b) EV/EBITDA
EBITDA = ₹12.7 Cr.
Net debt = 22.6 Cr – IPO repayment nil. EV ≈ 129 Cr.
