From The Economic Times · Snehal Mergu · · 1m 10s
Bonfiglioli Transmissions IPO: High-Risk Investment Opportunity
Bonfiglioli Transmissions' IPO offers high-risk investors 27.4% annual net profit growth with 46 P/E multiple.
In brief
Bonfiglioli Transmissions' IPO offers high-risk investors 27.4% annual net profit growth with 46 P/E multiple. Bonfiglioli Transmissions' IPO provides high-risk investors with 27.4% annual net profit growth and 46 P/E multiple. Originally reported by The Economic Times.
Bonfiglioli Transmissions IPO Details
Bonfiglioli Transmissions plans to raise rs2,534 crore through an offer for sale, reducing promoter stake from 100% to 77%.
Market Leadership and Revenue Growth
The company has 67.9% market share in wind turbine yaw and pitch drives and revenue grew 9.2% annually to ₹2,013.5 crore.
Profitability and Margins
Net profit increased 27.4% annually to ₹237.9 crore in 2025, with ebitda margin expanding between 2023 and 2026.
Currency Risk Exposure
Nearly 30% of raw materials are sourced overseas, exposing the company to currency fluctuations.
Valuation Metrics
The company trades at a 46 P/E multiple based on 2025 net profit, with annualized 2026 P/E at 37.
Peer Comparison
Competitors like Elecon Engineering, Timken India, and Shanthi Gears trade at P/E multiples of 32 to 53, with annualized FY27 multiples of 39 to 104.
Investment Recommendation
High-risk investors may consider the IPO given the company's growth trajectory and currency risk exposure.
What matters most
Bonfiglioli Transmissions' IPO provides high-risk investors with 27.4% annual net profit growth and 46 P/E multiple.
