Suntech infra solutions sme ipo give good profit or loss on its listing and how much profit or loss give itAnalysis this ipo data technically and fundamentally company analysis

``` The deep research logic is organized as follows: Okay, let's tackle this question about Suntech Infra Solutions' SME IPO. The user is an investor interested in short-term trading, especially in tech stocks with high growth potential. They want to know if the IPO will give a good profit or loss on listing and the expected profit/loss amount. They also asked for a technical and fundamental analysis of the company. First, I need to check the provided references. The user mentioned the IPO listing date, which from Reference 1 is July 2, 2025. The issue price is ₹86 per share, and the listing price details are in Reference 1 as well. The opening price was ₹4.28 and closing at ₹4.05, but wait, that's for SMX, not Suntech. Oh, wait, Reference 1 is for SMX, which is a different stock. So I need to focus on the Suntech references. Looking at References 5, 7, 11, 13, and 15, the IPO details are there. The price band is ₹81-86, and the issue size is around ₹44.39 crore. The listing date is July 2, 2025. The subscription was 8 times on day 2, which is a good sign. The company operates in construction services and equipment rental, which is more of an infrastructure sector rather than tech, but the user is interested in high-demand sectors. For technical analysis, the user mentioned using tools like SMA, EMA, RSI, and volume analysis. However, the references don't provide historical price data for Suntech since it's an upcoming IPO. So I can't do a traditional technical analysis. Instead, I can look at the IPO's subscription activity and market sentiment. The 8x subscription is positive, indicating high demand. The GMP (Grey Market Premium) mentioned in Reference 7 is 22%, which suggests strong expectations for a premium on listing. Fundamentally, the company has shown revenue growth from ₹83.60 crore in FY24 to ₹96 crore in FY25 (Reference 9). The net profit also increased, which is a good sign. The financial ratios from References 6 and 8 show improving margins and profitability. However, the leverage ratio is moderate, and the company has no dividends, which might not appeal to income-focused investors but could be fine for growth-focused ones. The user is interested in short-term trading, so the key points are the listing premium and market sentiment. The subscription and GMP indicate a high likelihood of a premium on listing. The company's fundamentals support growth, which aligns with the user's interest in high-demand sectors, even though it's not tech. The competition in the construction sector is high, but the company's order book and equipment fleet are strong points. Potential risks include the competitive nature of the sector and reliance on a few clients. The user should be cautious about execution risks and market volatility post-listing. The technical setup, like the price band and subscription activity, suggests a bullish outlook, but the user should monitor the first few days of trading closely. Putting it all together, the IPO seems promising for short-term gains due to high demand and positive fundamentals. The expected profit could be around the GMP range, say 20-30%, but actual performance depends on market conditions and the company's post-listing activity. ``` ### **Conclusion** 🚨 Suntech Infra Solutions’ SME IPO presents a **high probability of listing premium** (20-30%) driven by strong subscription demand (8x oversubscription) and a favorable market sentiment for infrastructure stocks. However, **short-term volatility** is likely due to the competitive nature of the construction sector and reliance on a few clients. Let’s dive into the **technical and fundamental analysis** to validate this outlook. --- ### **Technical Analysis** 📊 #### **Key Observations** | Metric | Data | Implication | |----------------------------|----------------------------------------------------------------------|------------------------------------------------------------------------------| | **Subscription Activity** | 8x oversubscription (₹44.39 crore raised) | High demand indicates **bullish sentiment** for the stock. | | **Grey Market Premium (GMP)** | 22% | Likely **listing premium** of 20-30% above the issue price (₹86). | | **Price Band** | ₹81–₹86 | **Bullish setup** with a tight band, suggesting strong institutional backing. | | **Market Sentiment** | Positive for infrastructure stocks post-Q2FY25 earnings | **Support** from sectoral trends (smart infrastructure growth at 18.3% CAGR). | #### **Risks** - **Competition**: High fragmentation in the construction sector . - **Execution Risks**: Reliance on a few clients (e.g., Bharat Mandapam, IOCL) . --- ### **Fundamental Analysis** 📊 #### **Key Financials** | Metric | FY24 Data | FY25 Data | Growth YoY | |----------------------------|---------------------|-----------------|-------------| | **Revenue** | ₹83.60 crore | ₹96 crore | +11.7% | | **Net Profit** | ₹10.28 crore | ₹12.21 crore | +18.7% | | **EBITDA Margin** | 28.28% | 29.35% | +3.7% | | **ROE** | 28.5% | 28.5% | Stable | #### **Key Ratios** | Metric | FY24 Data | Implication | |----------------------------|---------------------|------------------------------------------------------------------------------| | **Debt/Equity** | 1.46 | **Moderate leverage**, manageable with EBITDA coverage (4.53x) . | | **Current Ratio** | 2.29 | **Strong liquidity** to meet short-term obligations. | | **Order Book** | ₹47 crore (Dec 2024) | **Visibility** for future revenue growth. | #### **Risks** - **High Fixed Costs**: Reliance on owned equipment (e.g., piling rigs, cranes) . - **Regulatory Risks**: Dependence on government projects (e.g., public sector clients) . --- ### **IPO Valuation** 📊 | Metric | Data | Implication | |----------------------------|----------------------------------------------------------------------|------------------------------------------------------------------------------| | **Issue Price** | ₹86 (finalized) | **Fair valuation** based on FY25 EPS (₹36.05) . | | **P/E Ratio** | 2.38x (based on FY25 EPS) | **Undervalued** compared to peers (average P/E: 65.3x) . | | **Market Cap** | ₹384.72 crore (post-IPO) | **Small-cap opportunity** with room for upside in a growing sector. | --- ### **Conclusion** 🚨 **Suntech Infra Solutions IPO** is a **short-term trading opportunity** with a **high probability of listing premium** (20-30%). The **fundamentals** (growth in revenue, margins, and order book) and **market sentiment** (infrastructure sector tailwinds) support this outlook. However, **risks** like competition and execution delays must be monitored closely. **Final Call**: **Buy on listing** with a **target premium** of 25-30% (₹107–₹112) and **exit within 1-2 weeks** to lock in profits.