1. At a Glance
Sathlokhar Synergys E&C Global Ltd is a 2013-born construction company that decided to be both builder and buzzword-compliant EPC player. With64 completed projects worth ₹334 Crand14 ongoing projects worth ₹449 Cr, it’s not exactly L&T but not your local “Sharma & Sons Contractor” either. They’ve also built a pipeline worth₹435 Cr, pushing their total order book to nearly₹981 Cras of Feb 2025. IPO in Aug 2024 raised ₹93 Cr, promoters still hold63%, and FIIs tried flirting (3.2% entry → 0.07% exit, ouch). Basically, they’re a niche infra stock with solar dealership ambitions and an order book fatter than their revenue.
2. Introduction
Every infra SME loves three words:“Engineering, Procurement, Construction.”Sathlokhar Synergys added a fourth — “Global.” Except their geography so far is Tamil Nadu, Karnataka, UP, and WB. That’s like naming your local dosa joint “International Tandoori Café.”
To be fair, they’ve delivered 64 projects across sectors — pharma plants, warehouses, hospitals, hotels, villas, and even solar installations. Their pitch: “We’ll handle everything from design to commissioning, you just cut the cheque.” That full-stack EPC model sounds fancy, but the sector-wise breakup reveals 98.6% dependence on private clients. Translation: “Government payments are too slow, we’d rather chase corporate deadlines.”
Then there’s thesolar twist— Sathlokhar is an authorized dealer of Tata Power Solar. So while other infra SMEs brag about bagging highways, Sathlokhar proudly installs rooftop panels and MEP systems. It’s niche, but in a world chasing renewables, that niche might just keep them in institutional investor presentations.
The red flag?Customer concentration.In FY24, their top 10 clients accounted for90% of revenue(up from 80% FY23). That’s not diversification, that’s dependence with a capital D. One delayed project, and suddenly the books look like they’ve gone on vacation.
3. Business Model (WTF Do They Even Do?)
Sathlokhar is essentially a project execution specialist:
- Buildings & Infra: Pharma plants, hospitals, warehouses, commercial complexes, hotels, resorts, villas.
- Solar EPC: Installation, sales, commissioning, and O&M for Tata Power Solar projects.
- MEP Systems: Mechanical, Electrical, and Plumbing installation. (Basically, making sure your 5-star resort has AC, water, and lights working at the same time.)
- End-to-End EPC: From design & tendering → procurement → execution → handover.
Their “global” flavor comes from diversification across states, but 64%
of revenue still comes from Karnataka, 23% from TN, and 13% from UP.
Order Book Highlights:
- Ongoing: 14 projects worth ₹449 Cr
- Pipeline: ₹435 Cr
- Total: ₹981 Cr
For a 118-employee company, that’s either proof of efficient outsourcing or a setup for execution nightmares.
4. Financials Overview
(Detailed quarterly data isn’t available, so let’s piece together from order book, IPO, and disclosures.)
| Metric | FY23 | FY24 | YoY % |
|---|---|---|---|
| Projects Completed (₹ Cr) | ~155 | ~179 | +15% |
| Order Book (₹ Cr) | ~700 est. | 981 | +40% |
| IPO Raised (₹ Cr) | – | 93 | – |
Commentary: Revenue visibility looks strong (981 Cr = ~5x annual revenue capacity). But execution risk is high with customer concentration + small workforce. EPS, PAT margins, and P/E aren’t disclosed yet on NSE SME tracker, so valuations remain “blind-date mode.”
5. Valuation (Fair Value RANGE only)
We’ll have to approximate:
a) P/E MethodSME infra peers trade ~20–25x earnings. Assuming Sathlokhar can convert ₹981 Cr into ~₹50 Cr PAT in 2 years, fair range ~₹1,000–₹1,200 Cr mcap.
b) EV/EBITDAIf margins hold at ~10% EBITDA, then 981 Cr order book → ~₹98 Cr EBITDA. Apply EV/EBITDA 10x → ~₹980 Cr EV.
c) DCFAssume 20% CAGR revenues, fair valuation ~₹900–1,100 Cr.
👉FV Range = ₹900 – ₹1,200 Cr market cap(Educational only, not investment advice)
6. What’s Cooking – News, Triggers, Drama
- IPO (Aug 2024): Raised ₹93 Cr. Funds to fuel WC and corporate expansion.
