Globe Civil Projects Ltd has a strong track record of project execution, with 37 projects completed in the last two decades and currently there are 13 ongoing projects for a diverse set of corporate, government, and other customers across various segments.
SBI Securities has released a Research - IPO note on Globe Civil. The IPO is scheduled to open on 24th June 2025 and will close on 26th June 2025. The price band is set at ?67-71 per share, with a fresh issue size of ?119 crore.
As of March 2025, the company has a robust order book of Rs669.1 crore, providing strong revenue visibility for the near term. The company is also focusing on adding projects with better margins and prestigious projects that help enhance its reputation and execution track record
Globe is currently present in 11 states across the country and follows a contiguous expansion strategy. The company plans to expand its geographical presence with an initial focus on newer geographies such as West Bengal and Odisha
Globe Civil Projects Ltd (GCPL), incorporated in 2002, is an integrated engineering, procurement and construction (EPC) company headquartered in New Delhi. The company is involved in execution and construction of infrastructure projects comprising of Transport and Logistics projects, Social and Commercial projects and non-Infrastructure projects comprising of commercial offices and housing.
Key Risks: Concentration of business activities in single state (Delhi contributed 66.1%/47.2% of revenue in 9MFY25/FY24 respectively); Inability to win tender offer; Delays or cancellation of orders; Inability to execute expansion plans; High working capital requirement (net working capital days of 103 days in FY24).
Valuation: The company is valued at 9MFY25 annualised P/E and EV/EBITDA multiple of 17.9x /10.6x respectively. The Revenue/EBITDA/PAT has grown at a CAGR of 7.8%/39.6%/72.0% to Rs 332 cr/Rs 45 cr/Rs 15 cr respectively during FY22-FY24. The current order book position (~2.0x of 9MFY25 annualised revenue) provides healthy revenue visibility for near term. However, D/E at 1.4x as of Dec’24 is relatively higher than its peers. Company’s scale of operation is also very small which can impact financial performance if any project is stalled. Investors are advised to review the financial performance of the company post listing. We maintain NEUTRAL outlook on the company.
