NAAA

The Manesar company makes geophones and seismic cables, the sensors used to detect ground vibrations in seismic surveys. Most of its sales are exports to survey contractors and oil companies, and FY26 revenue was INR 45.2 cr. HGS is debt free and has a 40-year record, but its revenue has grown only 1.8% a year since FY15, with demand tied to oil and gas exploration cycles. The IPO looks cheap at 6.0x FY26 EV/EBITDA, but FY26 margins were the highest in 12 years, and on average EBITDA over that period the multiple doubles to 12.3x. The plant also runs well below capacity, inventory equals a full year of sales, and a few customers now make up most of the revenue. We would skip the issue at the IPO and track the company for signs of steady growth.