India spends on power in two instructions without delay. It spends to make extra of it, and it spends to make use of extra of it. Wind farms and solar parks sit on one facet. Rail electrification, metro traces and industrial motors sit on the opposite. Most listed names provide you with one facet or the opposite. In August, two small corporations arrived that provide you with one every.
The primary one builds the ability electronics that allow an electrical locomotive flip present from the overhead wire into movement. The opposite fabricates the tall metal tubes a wind turbine sits on prime of. One agency is a purchaser of the grid whereas the opposite helps construct it.
Two of probably the most adopted names have been already on the register. Nonetheless, neither Madhusudan Kela nor Mukul Agarwal walked into the market this month and purchased these shares. Each have been on the register lengthy earlier than both listed. In a single case the numbers say one thing sharper than a purchase order. Allow us to take them one by one.
#1 MV Electrosystems: The Tech Behind Electrical Locomotives
Integrated in 2009, MV Electrosystems makes electrical and energy electronics tools for railway rolling inventory. Its foremost product is IGBT-based three-phase propulsion tools for electrical locomotives. That’s the field that takes excessive voltage off the wire above the practice and turns it into managed energy on the wheels. It additionally builds switchgear panels and car management programs, and manufactures in Haryana.
Speaking in regards to the itemizing, the Rs 290 cr recent situation was subscribed round 200 instances, with anchors placing in Rs 130.5 cr. The inventory has traded between Rs 687 and Rs 519 since, and closed at Rs 591 on 21st August 2026, for a market worth of Rs 1,613 cr.
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Madhuri Madhusudan Kela, spouse of the investor Madhusudan Kela, seems within the August shareholding submitting at 4.22%, a place price roughly Rs 65 cr. However have a look at the place it got here from. When the corporate filed its draft supply doc in November 2025, she held 11.5 lakh shares, which was 5.6% of the corporate.
Kela Shareholding: A Case of Dilution, Not Recent Shopping for
Right here is the arithmetic, price doing slowly. If 11.5 lakh shares got here to five.6%, the corporate had roughly 205 lakh shares earlier than the difficulty. The IPO added 68.2 lakh new ones, taking the rely to about 274 lakhs. Those self same 11.5 lakh shares, measured in opposition to the bigger rely, work out to 4.20%. The submitting says 4.22%.
So, she didn’t purchase. She didn’t promote both. The corporate printed recent shares, each present slice acquired thinner, and hers went from 5.6% to 4.22% by itself. That’s the most helpful factor a reader can take from this submitting. A primary shareholding sample after an inventory exhibits you who was already there. It tells you nothing about who’s shopping for now.
Working Losses and Stretching Stock Days
The financials are the place this will get uncomfortable, after which fascinating.
| Monetary 12 months | FY23 | FY24 | FY25 | FY26 | 3Y CAGR |
| Gross sales (Rs cr) | 68 | 50 | 63 | 49 | -10% |
| EBITDA (Rs cr) | 6 | 6 | 7 | -10 | NM |
| Web Revenue (Rs cr) | 1 | 1 | 1 | -13 | NM |
EBITDA right here means working revenue earlier than different earnings. Two notes earlier than you learn these numbers. Solely 4 years of accounts exist right here, so a five-year development charge can’t be labored out truthfully and I’ve not tried. And FY26 turned destructive at each the working and internet stage. A charge working from a optimistic quantity to a destructive one means nothing, so I’ve marked each NM or Not significant.
FY26 was unhealthy on the face of it. Income fell about 22% to Rs 49 cr. There was an working lack of Rs 10 cr and a internet lack of Rs 12.6 cr. Return on capital was minus 15.1%. Money from operations was an outflow of Rs 58 cr. Stock days stretched to 731, the money conversion cycle to 571 days.
The ₹921 Crore Order Guide: A Lifeline from Indian Railways
Then the opposite half. Prototype approval from Chittaranjan Locomotive Works got here in September 2025, and industrial provide solely started in March 2026. FY26 was the 12 months the previous enterprise light and the brand new one had not but began to invoice. As of 30th June 2026, the executable order ebook stood at Rs 921.64 cr, masking 564 propulsion items for the Chittaranjan, Banaras and Patiala locomotive works. Towards FY26 income of Rs 49 cr, that’s near nineteen instances a full 12 months of gross sales.
That order ebook, not the revenue and loss account, is what the Rs 1,551 cr market worth is shopping for. The inventory trades at about 31 instances FY26 gross sales and has no value to earnings ratio in any respect, as a result of there have been no earnings. A ten-year median PE doesn’t exist both, because it has been listed for fifteen days. I’ve left each out quite than costume up numbers with no historical past behind them.
Excessive Working Capital and Single-Purchaser Dependence
The dangers are additionally fairly plain. The 731 stock days imply quite a lot of money sits in components ready to be constructed. That’s the reason Rs 180 cr of the difficulty cash goes into long-term working capital and Rs 21 cr into analysis. Borrowings rose from Rs 32 cr to Rs 55 cr and curiosity cowl is skinny. Nearly your entire order ebook traces again to 1 purchaser, Indian Railways.
The board meets on twenty fifth August for the June quarter. These would be the first numbers this firm has ever reported as a listed agency, and the primary have a look at whether or not propulsion income has began to land.
#2 Anawil Wire and Engineering: Fabricating the Wind Energy Push
Integrated in January 2021, Anawil Wire and Engineering fabricates tubular metal windmill towers. It started with weldmesh, boiler components and paper equipment parts, and moved into wind towers solely in 2023. Two vegetation, at Koppal in Karnataka and Kutch in Gujarat, span 48 acres with a mixed capability of 612 towers a 12 months.
The difficulty raised Rs 177.81 cr, was subscribed about 99 instances, and listed at Rs 329.65 in opposition to a value of Rs 270. Anchors put in Rs 50.64 cr throughout 19 names, together with Sunil Singhania’s Abakkus Enterprise Alternatives Fund and Vikas Khemani’s Carnelian.
The inventory closed at Rs 465 on 21st August 2026, at a market worth of Rs 1,163 cr. Mukul Agrawal, founding father of Param Capital, exhibits up at 2.72%, roughly 6.88 lakh shares price about Rs 29 cr. He too was in early.
Demystifying the 42% Working Margin Phantasm
Allow us to now have a look at the financials to get a greater have a look at the numbers behind the machine.
| Monetary 12 months | FY23 | FY24 | FY25 | FY26 | 3Y CAGR |
| Gross sales (Rs cr) | 26 | 54 | 78 | 143 | 77% |
| EBITDA (Rs cr) | 13 | 22 | 30 | 61 | 67% |
| Web Revenue (Rs cr) | 5 | 4 | 12 | 37 | 95% |
As earlier than, EBITDA means working revenue forward of different earnings. Solely 4 years of accounts exist right here too, so three years is way back to a development charge can truthfully go. The FY23 base can also be sufficiently small that these percentages flatter the enterprise. Tower output rose from 114 in FY24 to 210 in FY26. Return on fairness was 56.6% final 12 months, and 42.9% averaged over three.
Then there’s the 42.6% working margin, which seems extraordinary for a metal fabricator. The corporate’s personal investor presentation explains why. Anawil works beneath three preparations. Underneath pure conversion the shopper provides the metal and Anawil expenses just for the work, incomes roughly 44% to 50%.
Add in-house internals and it drops to 33% to 37%. Underneath built-in provide, the place Anawil buys the metal itself, margin falls to 14% to 16%, as a result of that metal value now sits inside income.
So, in the present day’s 42.6% is basically conversion earnings on a small billing base. The corporate says as a lot, and provides that the share normalises downward as scope widens. Absolute revenue can nonetheless rise. However anybody anchoring to a 42% margin is anchoring to a income combine, not a producing edge.
Buyer Focus and the Monsoon Seasonality Lure
The order ebook was Rs 359.81 cr as on thirty first March 2026, masking 379 towers. It got here from six prospects. Not sixty. Six. The highest 5 prospects have been 78.75% of FY26 income, with the most important at 29.32%. And 93.87% of FY26 income got here from a single state, Karnataka.
There’s a timing entice right here too. Wind towers can’t be put in simply within the rains, so 71.12% of FY26 income landed between October and March. Solely 28.88% got here within the April to September half. When Anawil reviews a comfortable first half, that’s the calendar, not a collapse. A recent letter of intent for 38 towers price Rs 120 cr arrived within the June quarter.
Money is the softer spot. Revenue earlier than tax was Rs 44.5 cr in FY26, however money from operations was solely Rs 18.4 cr, as a result of working capital swallowed near Rs 90 cr. Free money circulate was destructive Rs 75 cr. Borrowings greater than doubled to Rs 128 cr because the Kutch plant went up, and year-end money was Rs 1.6 cr.
Round Rs 115 cr of the difficulty proceeds repays debt, so the FY27 stability sheet ought to look very totally different. The accounts additionally carry a flag that the corporate could also be capitalising curiosity value.
Valuations and the Actuality of SME Platform Illiquidity
On valuation, the inventory trades at about 32 instances earnings. The present trade median is 35x. So Anawil screens barely cheaper in opposition to its sector. A ten-year median PE doesn’t exist right here both.
Yet one more level, and it issues. Anawil sits on the SME platform, not the principle board. You can not purchase a single share right here; the lot is 400, which places the smallest ticket above Rs 2 lakh. Reporting necessities are lighter than a foremost board firm carries. And with solely 3,684 shareholders on the register, buying and selling is skinny sufficient {that a} modest order can swing the worth both means. Promoting out in a rush isn’t all the time potential.
Act or Anticipate the Quarterly Outcomes Earlier than Shopping for?
With all of the above numbers and insights, it’s nearly clear that each buyers took their positions in non-public, earlier than the general public acquired a value. What August delivered was not a purchase order however a valuation. For Kela, the very first thing that valuation did was lower her proportion with out touching a share.
Every carries the chance of its personal finish of the ability commerce. MV Electrosystems has a big order ebook, no income but, and one purchaser. Anawil has actual income, actual money pressure, six prospects and one state. Neither is priced for disappointment.
The dates do the speaking from right here. MV Electrosystems reviews on twenty fifth August. Anawil’s first half will look comfortable due to the monsoon, and the query is what October to March delivers. The smart transfer is to place each on a stock watchlist and let a couple of quarters of actual numbers arrive earlier than forming a view.
Disclaimer
Be aware: Now we have relied on information from http://www.Screener.in and http://www.trendlyne.com all through this text. Solely in instances the place the information was not obtainable, have we used an alternate, however broadly used and accepted supply of knowledge.
The aim of this text is barely to share fascinating charts, information factors and thought-provoking opinions. It’s NOT a advice. If you happen to want to contemplate an funding, you’re strongly suggested to seek the advice of your advisor. This text is strictly for educative functions solely.
Suhel Khan has been a passionate follower of the markets for over a decade. Throughout this era, he was an integral a part of a number one Fairness Analysis organisation primarily based in Mumbai because the Head of Gross sales & Advertising. Presently, he’s spending most of his time dissecting the investments and methods of the Tremendous Traders of India.
Disclosure: The author and his dependents don’t maintain the shares mentioned on this article. The web site managers, its worker(s), and contributors/writers/authors of articles have or might have an impressive purchase or promote place or holding within the securities, choices on securities or different associated investments of issuers and/or corporations mentioned therein. The content material of the articles and the interpretation of information are solely the non-public views of the contributors/writers/authors. Traders should make their very own funding choices primarily based on their particular goals, sources and solely after consulting such unbiased advisors as could also be needed.
