Karamtara Engineering
What they do: Karamtara Engineering Limited operates in the engineering sector, focusing on manufacturing and supplying engineering products and services.
By IPO Milega Research · Published · Updated
Analysis score 7.2 +1.5 for 168.19x QIB subscription
Karamtara Engineering Limited shows strong financial fundamentals with a robust revenue growth and profitability trend.
- Listing gain
- +25.98%
- Listed at ₹320
- Subscribed
- 66.01x
- Total
- Retail odds
- 7.2%
- 1 in 14
GMP is an unofficial grey market indication. GMP updated 17 Sept, 20:49 IST.
- Price band
- ₹241-254
- Lot size
- 59 shares
- Min. investment
- ₹14,986
- Issue size
- 875 cr.
- Open9 Sept 2026
- Close11 Sept 2026
- Allotment15 Sept 2026
- Listing17 Sept 2026
Overview
Estimated from the current subscription figures. Tap a category to work it out for your application size.
- QIB
- 168.19x
- NII
- 51.17x
- Retail
- 13.98x
₹302 (+18.90%)
GMP trend
Unofficial grey market quotes, times in IST
Where the money goes
- To the company
- ₹675 Cr
- Fresh issue
- To selling shareholders
- ₹200 Cr
- Offer for sale
- Funding prepayment, repayment and/ or payment obligations to lenders towards borrowings and Acceptances, in part or full₹600 Cr75%
- General corporate purposesNot stated
- Offer for sale: goes to selling shareholders₹200 Cr25%
Outer ring: estimated gain
How the score adds up
The overall score is the average of these five, nudged by QIB demand once bidding closes.
- Financials8.0
- Performance8.0
- Flexibility8.0
- Timing8.0
- Risk4.0
The Grey Market Premium (GMP) of 323, representing a 27.17% premium, indicates strong investor interest and potential for significant listing gains. This is supported by the company's robust financial performance, strategic market positioning, and favorable IPO timing.
Strengths3
- Ranked 8th among solar energy industry peers in India.
- Achieved a revenue of ₹43,119.76 million in Fiscal 2026.
- Maintained a negligible customer rejection rate of 0.14%.
Concerns5
- Revenue concentration in Maharashtra and solar industry
- Dependence on key customers and suppliers
- Legal disputes affecting operations and financials
- Exposure to international market fluctuations
- Regulatory compliance and potential penalties
Who gets shares
- QIB50%
- NII15%
- Retail35%
- Retail Minimum14,9861 lots, 59 shares
- Retail Maximum1,94,81813 lots, 767 shares
- S-HNI Minimum2,09,80414 lots, 826 shares
- S-HNI Maximum9,89,07666 lots, 3,894 shares
- B-HNI Minimum10,04,06267 lots, 3,953 shares
| Application | Lot size | Shares | Amount |
|---|---|---|---|
| Retail Minimum | 1 | 59 | 14,986 |
| Retail Maximum | 13 | 767 | 1,94,818 |
| S-HNI Minimum | 14 | 826 | 2,09,804 |
| S-HNI Maximum | 66 | 3,894 | 9,89,076 |
| B-HNI Minimum | 67 | 3,953 | 10,04,062 |
Timing
8.0/10The timing of the IPO appears favorable due to the company's strong financial performance and growth trajectory. The increase in revenue and profit margins over the years suggests a positive market perception and investor confidence. Additionally, the company's ability to generate significant cash from operations indicates a healthy financial position, making it an opportune moment to enter the market.
- Time to market
- The company's consistent growth in revenue and profits, coupled with effective cash flow management, suggests that the market conditions are favorable for an IPO. The strategic timing aligns with the company's financial strength and market readiness, enhancing the likelihood of a successful capital raise.
- How allotment works
- Basis of allotment finalized and shares credited to demat
- Market timing
- Favourable
- Time to market
- 8.0
- Listing on
- BSE, NSE
Key milestones
- 9 Sept 2026IPO Opens
- 11 Sept 2026IPO Closes
- 15 Sept 2026Basis of Allotment
- 16 Sept 2026Refunds Initiated
- 16 Sept 2026Credit to Demat Account
- 17 Sept 2026Listing Date
Financials
8.0/10- Revenue
- ₹4,316 Cr
- +36.4%
- Profit after tax
- ₹229 Cr
- +64.2%
- Net margin
- 5.3%
- +0.9 pts
- Assets
- ₹4,142 Cr
- +49.9%
- Return on equity
- 20.78%
- Debt to equity
- 0.72
- Revenue CAGR
- 30%
- ROCE
- 23.27%
- Return on net worth
- 20.78%
- NAV per share (₹)
- 41.72
Financial performance trend
Amount ₹ in croresKaramtara Engineering Limited shows strong financial fundamentals with a robust revenue growth and profitability trend. The company has a healthy EBITDA margin and a solid return on equity, indicating efficient management and operations. However, the lack of detailed liabilities data prevents a complete assessment of the debt-to-equity ratio.
Risk
4.0/10Read this score as a safety rating: 10/10 means the lowest risk, 1/10 the highest.
Where the risks sit
- Financial risks4
- Market risks2
- Operational risks3
- Regulatory risks2
Karamtara Engineering faces high operational and financial risks due to revenue concentration, legal disputes, and regulatory challenges.
How the company offsets these
Diversify revenue streams and enhance legal compliance to mitigate risks.
Financial risks4
- Revenue concentration in solar industry
- Dependence on key customers
- Foreign currency and interest rate risks
- Potential liabilities from legal disputes
Market risks2
- Exposure to international market fluctuations
- Geopolitical and economic uncertainties
Operational risks3
- Revenue concentration in Maharashtra
- Dependence on key suppliers
- Potential disruptions at manufacturing sites
Regulatory risks2
- Compliance issues with Companies Act
- Potential penalties from CBI and ED investigations
Performance
8.0/10Karamtara Engineering Ltd. has demonstrated strong financial performance and growth in the solar energy sector, with significant export growth and a robust operational capacity. The company faces risks related to supplier concentration and raw material price fluctuations but maintains a strong market position.
- Historical growth
- The company has shown a consistent upward growth trajectory, with a notable revenue increase of 36.52% in Fiscal 2026., 36.52% year-on-year growth in Fiscal 2026.
- Market comparison
- Karamtara ranks 8th among its peers in the solar energy industry in India, indicating a strong competitive position.
- Future potential
- The company is well-positioned for future growth, supported by its strong export market and operational capacity.
- Operational consistency
- The company has maintained a stable growth trajectory with consistent revenue increases and a strong export market presence.
- Experience
- The management team has demonstrated effective operational execution and strategic growth in the solar energy sector.
- Track record
- Strong track record of revenue growth and market expansion.
Key achievements
- 01Ranked 8th among solar energy industry peers in India.
- 02Achieved a revenue of ₹43,119.76 million in Fiscal 2026.
- 03Maintained a negligible customer rejection rate of 0.14%.
Flexibility
8.0/10Karamtara Engineering Ltd has a strong market adaptability, evidenced by its extensive global footprint, serving over 50 countries, and its ability to capture a significant share of the solar energy market in India. The company's strategic location of manufacturing facilities and its recognition as a Four Star Export House further enhance its adaptability to market demands.
The company shows strong financial stability with a consistent track record of revenue and profitability growth. Its EBITDA and PAT margins are competitive, and it maintains a healthy debt-to-equity ratio. The company's financial position supports its expansion plans and ability to meet customer demands.
Karamtara Engineering Ltd exhibits operational agility through its backward integration capabilities, in-house galvanizing facilities, and strategic manufacturing locations. These factors contribute to efficient production processes and reduced dependency on external suppliers.
Karamtara Engineering Ltd demonstrates strong flexibility and adaptability, driven by its diverse product offerings, robust financial performance, and strategic expansion plans. The company is well-positioned in the renewable energy sector with a significant market presence and a comprehensive product portfolio.
- Product diversification
- Karamtara Engineering Ltd offers a wide range of products in the solar and wind energy sectors, including solar mounting structures, tracker components, lattice towers, and fasteners. This diversification allows the company to serve as a one-stop shop for renewable energy solutions.
- Future adaptability
- The company is well-positioned to adapt to future market changes with plans to expand its manufacturing capacity and enter new product segments like solar stamping parts and BESS. Its focus on sustainability and compliance with international standards further enhances its adaptability potential.
The data on this page has been reviewed manually by the IPO Milega research team. It is not investment advice, and IPO Milega accepts no responsibility for losses arising from any investment decision. Investments in the securities market are subject to market risks. Read all the related documents, including the full prospectus, carefully before investing.