Ajwa Projects Ltd (SME)

The Surat company is a sub-contractor that fabricates and erects steel structures for steel plants, refineries and infrastructure projects. FY26 revenue was INR 48.4 cr. Ajwa reported profits over the last three years, but its operating cash flow stayed negative as more money got stuck with clients. Its top three clients gave two-thirds of recent revenue, and the order book covers less than a year of sales. The largest shareholder joined only in December 2024, at a cost of INR 0.50 a share against the IPO price of INR 203, and the company hasn’t stated why he was brought in. Furthermore, at 21x FY26 P/E, the issue is priced above its listed peers. We would skip it at the IPO and for both the short and long term.
