August 14, 2025
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Mangal Electrical Limited – IPO Review by Paresh Gordhandas, CA & Research Analyst
Business Overview
Established in 2008, Mangal Electrical Industries Limited manufactures transformers for distribution and transmission of electricity, along with key transformer components like laminations, CRGO slit coils, amorphous cores, coil & core assemblies, wound cores, toroidal cores, and oil-immersed circuit breakers.
Its “Mangal Electrical” brand enjoys strong recall in the power equipment sector. The company also trades in CRGO/CRNO coils, amorphous ribbons, and provides EPC services for electrical substation projects. It operates five manufacturing units in Rajasthan with substantial capacity across CRGO processing, transformer production, ICB, and amorphous units.
Valuation at Upper Price Band (Rs. 561)
FY25 EPS = Rs. 47.31 crore ÷ 2.84 crore shares ≈ Rs. 16.65
P/E = ~33.7× on FY25 earnings.
Margins have improved sharply in FY25 with EBITDA margin rising to ~14.8% and PAT margin to ~8.6%. Revenue CAGR for FY23–FY25 stands at ~24.4%, and PAT CAGR at ~41.8%.
Strengths
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Established brand with long-standing industry presence
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Wide product range from small distribution to large transformers
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In-house EPC capabilities for turnkey substation projects
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Strong revenue and profit growth in FY25
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Large manufacturing capacity enabling scale-up
Risks
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High dependence on government and utility sector orders
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Sharp rise in borrowings in FY25 – leverage needs monitoring
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Raw material price volatility (especially CRGO steel) may impact margins
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Working capital-intensive operations
Chanakya View
Mangal Electrical’s strong FY25 growth, brand strength, and infrastructure position it well for India’s ongoing power sector expansion. However, at ~33.7× P/E, valuations are on the higher side compared to some peers in the capital goods sector. The rise in debt is also a watch point.
For listing gains – watch GMP trends closely before applying.
For long-term investors – can be considered if earnings momentum sustains and leverage is managed prudently.
The IPO opens on August 20, 2025 and closes on 22 August 2025.
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