As we near the end of 2024, it’s time to reflect on the standout initial public offerings (IPOs) of the year. The IPO market has witnessed remarkable growth, with several companies delivering impressive returns, signaling investor confidence across various sectors. Here’s a look at the top 5 IPOs of 2024 and why they’ve been so successful, based on their post-listing performance and strong growth prospects.
1. Jyoti CNC Automation Limited
Specializing in designing and manufacturing precision tools for industries such as Aerospace, Defence, and Automotive, Jyoti CNC Automation has shown outstanding performance since its listing. The company posted a revenue of ₹431 crore for the September 2024 quarter, reflecting a 42% YoY growth, while net profit surged 4.4 times YoY.
The stock’s listing day saw a 30.86% gain, and investors are currently sitting on a massive return of 281%. With a strong ROCE of 21% and an increasing stake from institutional investors, Jyoti CNC has demonstrated impressive financial health. Despite a high PE ratio of 105 (industry PE: 44), its strong fundamentals suggest continued growth.
2. KRN Heat Exchanger and Refrigeration Limited (KHERL)
KHERL, which manufactures heat exchangers for HVAC and refrigeration industries, has delivered an incredible 263% return since its IPO. In Q2FY25, the company reported a 28% YoY growth in sales, reaching ₹91 crore, while net profit rose from ₹9 crore to ₹12 crore.
The stock’s listing day gain was a staggering 117%, and despite a stable shareholding pattern, the company’s strong cash balance of ₹350 crore and healthy operating profit margins have driven its success. With a PE ratio of 125 (industry average: 46), KHERL has high growth expectations priced in.
3. Premier Energies Limited
A leader in the solar energy sector, Premier Energies manufactures integrated solar cells and panels. The company has demonstrated phenomenal growth, with sales soaring by 171% YoY in Q1 and 120% YoY in Q2 of FY25. On its listing day, the stock delivered an 86% gain, and current investors have enjoyed returns of 190%.
Premier Energies has made significant investments in expanding its capacity, increasing plant and machinery investments by over 4.5 times since FY20. The company’s robust cash balance of ₹1,853 crore and ROCE of 25.2% reflect its operational efficiency. However, with a PE ratio of 251 (industry PE: 64), the stock trades at a premium valuation.
4. Platinum Industries Limited
Platinum Industries, which manufactures PVC stabilizers, CPVC additives, and lubricants, has seen a 184% return for IPO investors since its listing. Despite volatile operating profit margins, the company’s revenue has grown by over 50% YoY in the last two quarters, with notable improvements in cash conversion days.
Promoters hold a significant 71% of the company’s shares, and DIIs have been increasing their stake, reflecting strong investor confidence. Trading at a PE ratio of 51 (industry PE: 36), Platinum Industries’ solid ROCE and ROE of 27% and 22%, respectively, indicate promising future growth.
5. Bharti Hexacom Limited
Bharti Hexacom, providing fixed-line telephone and broadband services in Rajasthan and the North East, has shown consistent performance, with 21% YoY growth in sales for Q2FY25. The stock’s listing day gain was 42%, and IPO investors are currently enjoying a 150% return.
The company has significantly expanded its operating margins from 23% to 47% in the last three years. With a PE ratio of 75 (industry average: 57), Bharti Hexacom reflects stable profitability and high investor optimism. Its ROCE and ROE stand at 14%, showing healthy operational returns.
These top 5 IPOs of 2024 have been able to achieve impressive returns for investors, driven by strong fundamentals, steady growth, and increasing institutional support. As we look ahead, these companies are likely to continue to attract attention from both retail and institutional investors. The stellar performance of these IPOs indicates that, despite the challenges, investor sentiment remains strong across various sectors, including manufacturing, renewable energy, telecommunications, and more.
