Ajax Engineering Limited IPO: Check IPO Date, Lot Size, Price & Details

Introduction:

The company is a prominent manufacturer of concrete equipment, offering a comprehensive portfolio of products, services, and solutions across the concrete application value chain. As of September 30, 2024, it has developed over 141 equipment variants catering to various concrete applications and has sold more than 29,800 concrete equipment units in India over the past decade. With a legacy spanning 32 years, the company has built a diverse product range, including self-loading concrete mixers (SLCMs), batching plants for concrete production, transit mixers for transportation, boom pumps, concrete pumps, self-propelled boom pumps for placement, slip-form pavers for paving, and 3D concrete printers for advanced concrete deposition.

The company holds a leading position in India's SLCM market, commanding a market share of approximately 77%, 75%, 77%, and 86% in terms of units sold during the six-month period ending September 30, 2024, and the Financial Years 2024, 2023, and 2022, respectively. Notably, in Financial Year 2024, 12% of India’s concrete production was facilitated by the company’s SLCMs.

Its concrete equipment serves a wide range of applications, including:

• Transportation projects such as roads, railway lines, underground tunnels, elevated tracks, flyovers, and bridges.
• Irrigation projects including reservoirs, canals, check dams, and aqueducts.
• Infrastructure developments, encompassing landscaping, drainage, airports, power plants, factories, and oil & gas terminals.

Beyond SLCMs, the company has been steadily expanding its footprint in the non-SLCM segment, driven by a strong focus on innovation and quality. Between Financial Year 2022 and the six-month period ending September 30, 2024, its non-SLCM sales recorded a compound annual growth rate (CAGR) of 25.90%, underscoring its growing presence in this segment.

IPO Details:

Objectives of Issue:

Since entire issue is Offer for Sale , There  are no objectives

Key Strengths:

• Market Leader of a large and Fast Growing SLCM Market – The company is a dominant player in India’s self-loading concrete mixer (SLCM) market, holding an estimated market share of 77%, 75%, 77%, and 86% in terms of units sold during the six-month period ending September 30, 2024, and the Financial Years 2024, 2023, and 2022, respectively. Over the past decade, it has sold more than 25,000 SLCMs in India—making it the leading supplier among major concrete equipment manufacturers during this period.The Indian concrete equipment market, particularly the SLCM segment, is witnessing robust growth, driven by rising cement consumption and increased capital investments in infrastructure, irrigation, housing, and renewable energy projects. These developments have fueled demand for advanced construction materials and equipment. In Financial Year 2024, approximately 14% of India’s total concrete consumption was facilitated by SLCMs, underscoring their role in enhancing construction efficiency by enabling faster and more reliable project execution.
• Large dealer network with widespread distribution – Over the past three financial years, the company has operated through a dealer-led distribution and service model. As of September 30, 2024, its extensive dealer network consisted of 51 dealerships across 23 states in India, ensuring strong market accessibility through 114 customer touchpoints. These touchpoints include 51 dealer headquarters and 63 branches, with 34 of them also functioning as service centers.
  According to the Redseer Report, this represents the most expansive dealer and service network among major concrete equipment manufacturers in India as of September 30, 2024. The company has established long-term partnerships with its dealers, all of whom exclusively represent its products in the concrete equipment sector. Notably, 21 dealers—accounting for 41.18% of the total network—have been associated with the company for over five years, reflecting the strength and stability of these business relationships.
• Diversified customer base with longstanding relationships in the concrete equipment market – The company’s equipment is distributed through its dealer network both within India and internationally, catering to a diverse customer base. Its clientele includes individual contractors, small and mid-sized construction firms, rental service providers, large construction enterprises, and government agencies involved in infrastructure development. Additionally, its products serve specialized sectors such as transportation infrastructure and irrigation, where contractors require tailored solutions for complex projects.As of September 30, 2024, the company has supplied concrete equipment and spare parts to over 19,000 customers, marking steady growth from over 15,700 customers as of March 31, 2024, more than 12,100 customers as of March 31, 2023, and over 11,100 customers as of March 31, 2022. The company maintains a well-diversified revenue stream, with no single end customer contributing more than 5% of its total operational revenue during Financial Years 2024, 2023, and 2022.

Risks:

• Heavily dependent on Infrastructure and Real Estate – The company generates a significant portion of its revenue from the sale of self-loading concrete mixers (SLCMs), which form a core part of its product portfolio. Its business performance is closely linked to the demand for concrete and concrete equipment in India, which, in turn, is influenced by the growth and activity levels in key sectors such as construction, infrastructure, and real estate. Any prolonged slowdown in these sectors could result in decreased demand for concrete and related equipment, potentially affecting the company's sales volumes and profitability.
• Concentrated Manufacturing Capacity – As of September 30, 2024, the company operates four assembling and manufacturing facilities, with an additional facility under construction, all located in Karnataka. The geographic concentration of these facilities in a single state presents potential regional risks that could impact operations. These risks include infrastructure disruptions, natural disasters, labor-related challenges, fluctuations in economic conditions, civil unrest, regulatory changes, and shifts in local government policies, among other factors.
• Heavy Dependence on Dealers – The company relies heavily on its dealer network for product sales and distribution, with nearly 90% of its revenue generated through dealer-driven sales. Since dealers interact directly with end customers, their performance plays a crucial role in shaping customer perceptions of the brand. Any failure to uphold the company's established service standards—whether due to inadequate training, non-compliance with operational guidelines, limited resources, or other factors—could result in customer dissatisfaction, potentially impacting the company's reputation and business performanc

Financial Snapshot:

KPI comparison with Industry Peers

Conclusion

The company operates in the concrete equipment, services, and solutions sector, which is closely linked to the real estate, construction, and infrastructure industries. As a result, its growth trajectory is directly influenced by the expansion and performance of these sectors.

From a valuation perspective, the company is available at a price-to-earnings (P/E) multiple of 32, which is lower than that of all its listed peers, making it relatively more attractive in terms of valuation.

A financial performance comparison further highlights its strength, as the company has outperformed its peers across key metrics, including revenue growth, profit margins, and returns on capital and assets. Given its financial dominance and favorable valuation, the company presents a compelling long-term investment opportunity.