Savy Infra IPO has shown robust growth in recent years.
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Revenue Growth: From ₹101.6 crore in FY24 to ₹283.8 crore in FY25, indicating a sharp rise in project execution.
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Profitability: Net profit more than doubled, growing from ₹9.9 crore to ₹23.9 crore.
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Margins: The company maintains a healthy EBITDA margin of around 12.6% and a PAT margin of 8.4%.
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Return Ratios: ROE stands at 45.7%, and ROCE at 36.7%, reflecting strong operational efficiency.
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Debt Position: With a debt-to-equity ratio of 0.86x, the company has a moderate leverage profile.
Grey Market Premium (GMP)
Currently, the Grey Market Premium (GMP) for Savy Infra IPO is hovering around ₹11 per share, suggesting a potential listing gain of nearly 9% over the upper price band. While GMPs are unofficial and can fluctuate, they indicate strong investor interest in the IPO.
Strengths of Savy Infra IPO
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Asset-Light Model: Enables scalability with lower capital expenditure.
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Strong Client Base: The company works on large infrastructure projects across multiple states.
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Rapid Growth: Consistent rise in revenue and profits shows good execution capabilities.
Risks to Consider
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Client Concentration: A large part of revenue comes from a few key clients, which could pose risks if contracts aren’t renewed.
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Sector Dependency: Infrastructure and EPC businesses are cyclical and highly dependent on government spending and economic conditions.
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High Ticket Size for Retail Investors: The lot size of 1,200 shares makes it less accessible for small investors.
Final Thoughts
The Savy Infra IPO presents an interesting opportunity for investors seeking exposure to India’s growing infrastructure and logistics sector. Its strong financial performance and asset-light approach are positives. However, the IPO’s SME nature and high minimum investment size mean it’s best suited for investors with higher risk appetite and long-term vision.
Short-term investors may also consider participating given the healthy GMP trends, but should keep in mind the risks of SME listings and market volatility.
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