Garuda Construction and Engineering Limited is a prominent player in the civil construction sector, known for its commitment to quality and timely project delivery. The company recently garnered attention with the launch of its Initial Public Offering (IPO) on October 8, 2024, aiming to expand its operations and enhance its project portfolio. The IPO offers shares priced between ₹92 to ₹95, making it an attractive investment opportunity
A Brief Overview
Founded with the vision of delivering exceptional construction solutions, Garuda specializes in a wide range of projects, including residential complexes, commercial buildings, and infrastructure development. The company operates predominantly in the Mumbai Metropolitan Region (MMR), where it has secured numerous contracts that underline its market presence
Financial Performance
Garuda has shown robust growth in recent years. The company’s revenue surged from ₹770.21 million in FY2022 to ₹1,541.78 million in FY2024, demonstrating a compound annual growth rate (CAGR) of approximately 26.03%. Such impressive figures highlight Garuda’s ability to adapt to market demands while maintaining high-quality standards.
The company’s operational strategy revolves around an asset-light model, wherein it leverages third-party vendors for construction equipment. This approach not only minimizes overhead costs but also enhances operational flexibility, allowing Garuda to remain competitive in a fast-paced industry
Risk Factors
While Garuda Construction and Engineering Limited boasts a promising outlook, it is not without risks. A significant portion of its revenue comes from a concentrated customer base; the top five customers account for over 80% of total revenue. Any disruptions in relationships with these clients could substantially impact the company’s financial health
Furthermore, the company has shown dependence on related party transactions, which raises concerns regarding its financial sustainability. As Garuda continues to grow, diversifying its client base and expanding its geographical footprint will be crucial for long-term success
Looking Ahead
With its IPO underway, Garuda Construction and Engineering Limited is poised for an exciting phase of growth. Investors looking for exposure in the construction sector may find this IPO appealing, given the company’s strong financial performance and strategic vision. As the infrastructure landscape in India evolves, Garuda aims to play a pivotal role in shaping the future of construction