Epack Prefab Technologies IPO: Riding the PEB–Prefab capex wave – Should You Subscribe?

Epack Prefab Technologies IPO: Riding the PEB–Prefab capex wave – Should You Subscribe?

Price band set at Rs 194–204 per share; IPO opens September 24, 2025, closes September 26, 2025, tentative listing October 1, 2025 (NSE & BSE).

1. Company and its Business Operations

Epack Prefab Technologies Limited, incorporated in 1999, is engaged in the design, manufacture, supply and installation of pre-engineered and prefabricated building solutions. The company’s product portfolio includes prefabricated structures, cold rooms, insulation panels, and pre-engineered steel buildings. Its solutions cater to diverse sectors such as warehousing, logistics, industrial, commercial, retail, and infrastructure. Headquartered in Greater Noida, Uttar Pradesh, Epack has expanded its operations across India with project execution capabilities and has a subsidiary, Epack Prefab Solutions Private Limited. Over the years, it has established itself as an integrated player offering turnkey prefab construction and related engineering services.

2. Industry Outlook

According to the CRISIL report (August 2025), India’s prefabricated and pre-engineered building solutions industry is expected to grow strongly, supported by demand from infrastructure, warehousing, logistics and industrial expansion. The total addressable market (TAM) in India for prefab and PEB was valued at approximately Rs 46,500–48,500 crore in FY25 and is projected to grow at a CAGR of 9–11 per cent to reach Rs 73,000–80,000 crore by FY30. Globally, adoption of modular construction is rising due to sustainability and speed benefits. In India, government focus on Make-in-India, housing, and manufacturing corridors will continue to drive demand for prefab solutions.

3. Objects of the Issue

Epack Prefab will deploy the net proceeds primarily towards capacity expansion and balance sheet strengthening: about Rs 102.97 crore to build a new manufacturing facility at Ghiloth (Alwar, Rajasthan) for insulated sandwich panels and pre-engineered buildings, around Rs 58.17 crore to expand the Mambattu (Andhra Pradesh) plant, roughly Rs 70.00 crore for partial repayment/prepayment of borrowings, and the remainder towards general corporate purposes.

4. SWOT Analysis

Strengths

Integrated manufacturer with diversified prefab solutions across product categories and geographies.

Well-established client base spanning industrial, commercial, and infrastructure sectors.

Strong revenue diversification – top 10 clients contribute ~35% of revenues, reflecting limited client concentration risk.

Healthy customer mix with 30–35% repeat clients, while new customer acquisition remains robust.

Experienced promoters and management team with proven execution capabilities.

Good existing capacity with planned capex providing visibility for future growth.

Weaknesses

Working capital intensive business model.

Dependence on cyclical infrastructure and industrial demand.

Opportunities

Rapid expansion in warehousing, logistics and industrial parks.

Government support for faster, sustainable construction solutions.

Rising adoption of energy-efficient cold rooms and insulated panels.

Threats

Competition from unorganised sector and established peers.

Raw material price volatility (steel, insulation panels).

Project execution risks and customer concentration in few large orders.

5. At a Glance

6. Financial Performance

(a) Profit & Loss

(b) Balance Sheet

(c) Working Capital & Cash Flow

7. Outlook & Relative Valuation

*NA – Due to negative earnings PE is not available

Outlook for Epack Prefab remains favorable as it participates in a structurally growing India prefab/PEB market expected to expand at 9–11% CAGR till FY30. The company has improved profitability with EBITDA margins rising from 7.85% in FY23 to 10.39% in FY25 and PAT more than doubling on capacity additions and product mix gains. At Rs 204, valuations at ~344 FY25 EPS (Rs 6.33) are at a premium to Pennar (26.6x) but in line with Interarch (29.8x). Strong return ratios (ROE 9%, ROCE 17.9%) lend comfort, though commencement of operation at new facility and utilisation levels will be closed watched. Long-term growth visibility from industrial, warehousing, data centers and social infrastructure capex can sustain 15–20% CAGR if execution discipline is maintained.

8. Recommendation

Subscribe (Long-term). Industry growth, margin gains and capacity expansion drive prospects; strong return ratios justify premium.