Pratham EPC Projects: Should you buy this stock for long term

 Pratham EPC Projects Ltd, a company with good growth potential had launched its IPO in the Indian stock market and Investors had shown very good interest in this IPO & this IPO was oversubscribed by nearly 24 times at IPO price of ₹75 per share. It shows that company management had left something for its company investors on the table. Such small size of companies comes into the notice when their prices go higher.  Today, In the topic, we will discuss that what investors should do in ”Pratham EPC Projects” after its IPO listing. Let us understand the Business model and Financial Performance of the company then we will come to the final conclusion.

Pratham EPC Projects: A Strong Financial Performance and Promising Future:

Pratham EPC Projects Ltd is an integrated engineering, procurement, construction, and commissioning company providing services to Oil & Gas distribution companies in India.

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Exceptional Growth Trajectory:

Pratham EPC Projects has consistently outperformed the industry, boasting an impressive average annual earnings growth rate of  nearly 74%. This far surpasses the Construction industry's average growth rate of 20% annually, showcasing the company's robust expansion.

Solid Profitability:

The company's Return on Equity (ROE) stands at a remarkable near to 54%, underlining its solid profitability. This metric indicates how effectively Pratham EPC Projects utilizes shareholder equity to generate profits, demonstrating its efficiency and financial strength.

Impressive Order Book:

The total value of Pratham EPC Projects' ongoing projects is nearly Rs. 29,700 Lacs, with seven confirmed projects based on Letter of Allocation/Purchase Order. Additionally, the company has one project estimated at around Rs. 40,600 Lacs  by management. This substantial order book reflects confidence in the company's capabilities and bodes well for its future growth and revenue streams.

Pratham EPC Projects Stock: buy, sell or hold

Pratham EPC Projects company is looking very promising for the long term investment point of view. Funds raised by the company will be used in purchasing new machinery and meeting working capital requirements.  If we will see the financial performance of Pratham EPC Projects  company then in FY23 was good for the company and FY24 should also good as per the company projects pipeline.

Pratham EPC Projects has successfully executed more than 12 projects, with major completed projects quantifying to approx Rs. 13,184.10 Lacs. These completed projects give indication that the company experience and expertise in the field of engineering, procurement, construction, and commissioning services for oil & gas distribution companies.

We can say that With its robust financials, growth potential, and utilization of funds for strategic purposes, the Pratham EPC Projects is giving an attractive investment opportunity in the Indian stock market.  But as we always say to our website followers that It is always bit risky to invest in small size companies but still some small size companies gives opportunity for long term investment and Pratham EPC Projects comes one out of those. Invstors should keep an eye on coming quaters results of the company and Do not rush for buying "Pratham EPC Projects" stock after IPO listing because Valuations may get strached & Company has to maintain the good financial performance if it wants to attract more investors for the company. Buy on dip will be the good strategy in Pratham EPC Projects stock.

In conclusion, Pratham EPC Projects' financial performance paints a picture of resilience and prosperity. With its outstanding growth rates, solid profitability, successful IPO, and impressive order book, the company is well-positioned for continued success and expansion in the construction industry.