- Market cap then
- INR 298 Cr.
Msafe Equipments Ltd manufactures, sells and rents access and height-safety equipment. Minerva Capital Research Solutions’ company note highlights rising revenue and margins, a planned manufacturing expansion and the recurring-income rental business, while also flagging receivables and leverage risks. The note does not state a recommendation or target price.
About Msafe Equipments
Incorporated in 2019 in Delhi, Msafe Equipments manufactures, sells and rents equipment used to support safe work at heights. Its products include aluminium and mild steel scaffoldings, aluminium ladders and fibre-reinforced plastic (FRP) ladders. The equipment is used in construction, infrastructure, industrial maintenance and other work environments. The company operates a pan-India rental and sales business.
Investment Rationale
- Sales and rental mix: Both channels contribute to revenue. Rental services can provide recurring income, while the report notes that blended margins are higher than those of a pure-play sales model.
- Expansion plans: IPO proceeds include INR 32.26 Cr. for a new manufacturing facility. Commercial production is expected from May’27 onwards, with total capacity expected to reach ~2x current capacity.
- Customer and distribution reach: The company served more than 2,500 customers in FY25 and had 21 warehouses supporting sales and rental operations. The report notes a proposed expansion of the warehouse network to 35.
- Market growth estimates: The report estimates the India scaffolding market will grow from INR 7,209 Cr. in 2024 to INR 12,812 Cr. in 2030, and the India ladders market from INR 1,358 Cr. to INR 2,234 Cr. over the same period.
- Revenue and profit estimates: The report estimates operating revenue of 100.0 INR Cr. and PAT of 18.0 INR Cr. for FY26, followed by operating revenue of 150.0 INR Cr. and PAT of 25.0 INR Cr. for FY27.
Business Model and Operations
The company earns revenue from product sales and rental services. Rental equipment is provided to customers across India on weekly, fortnightly or monthly terms. The report says rental payments are generally supported by advances and security deposits.
In-house manufacturing began in FY24. The company currently has three facilities in the Industrial Estate of Greater Noida, Uttar Pradesh, with facilities primarily allocated to defined product categories. The proposed new facility is in Kosi Kotwan Industrial Area, Mathura, Uttar Pradesh.
The company’s 21 warehouses support sales and rental operations. Its sales and marketing team comprised 48 employees as of 31-Dec’25. In H1-FY26, aluminium scaffolding accounted for 37.4 INR Cr. of product-wise revenue, while MS scaffolding accounted for 5.9 INR Cr.
Msafe Equipments Key Financials
| Particulars | FY23 | FY24 | FY25 | Sep’25 | FY26 (E) | FY27 (P) |
|---|---|---|---|---|---|---|
| Revenue (excl. other inc.) | 29.7 | 48.1 | 71.3 | 49.0 | 100.0 | 150.0 |
| Growth Rate Y-o-Y % | 62.1% | 48.2% | ||||
| EBITDA (excl. other inc.) | 9.2 | 15.1 | 26.1 | 19.2 | ||
| EBITDA % (excl. other inc.) | 30.9% | 31.4% | 36.6% | 39.2% | ||
| PAT | 3.6 | 6.6 | 13.0 | 10.5 | 18.0 | 25.0 |
| PAT % | 12.3% | 13.6% | 18.2% | 21.4% | 18.0% | 16.7% |
| Debt (Short+Long) | 20.4 | 25.9 | 32.6 | 37.7 | ||
| Debt/Equity | 3.3x | 2.0x | 1.3x | 1.0x | ||
| ROE % | 85.7% | 70.0% | 67.9% | 33.9% | ||
| ROCE % | 23.3% | 28.0% | 34.6% | 21.2% |
FY26 (E) and FY27 (P) revenue, PAT and PAT % are from the report’s valuation table. The other financial rows are from its financials table.
Revenue and PAT increased from FY23 to FY25. The report also shows higher EBITDA and PAT margins over this period.
Valuation
The report lists an IPO market capitalisation of 250.92 INR Cr. and a current market capitalisation of 298 INR Cr. It gives FY26 PE of 16.6x and FY27 PE of 11.9x. No CMP, recommendation, target price or upside is stated in the note.
| Particulars | INR Cr. |
|---|---|
| IPO M.Cap | 250.92 |
| Current M.Cap | 298 |
| FY26 PE | 16.6x |
| FY27 PE | 11.9x |
Key Risks
- Receivables: Rental receivables were ~INR 18 Cr. against rental sales of INR 21 Cr. in H1FY26. The report states that INR 1.23 Cr. of outstanding receivables were doubtful and INR 0.43 Cr. had been provided for.
- Leverage: The report lists debt/equity of 1.04x for Sep’25 as a risk and warns that an adverse industry cycle or difficulty recovering receivables could cause stress.
- Margin moderation: The company’s EBITDA margins are described as high compared with the industry; the report says this remains monitorable.
- Working capital: The financials table shows NWC days rising from 45 in FY23 to 119 in Sep’25. The report also describes the receivables cycle as elongated.
Management
The report describes the company as led by a promoter-driven management team with experience across manufacturing, operations, finance and business development. It states that promoters are involved in strategic decisions, operational execution and business growth.
| Particulars | Pre-Issue | Post-Issue |
|---|---|---|
| Promoter & Promoter Group | 99.13% | 72.84% |
| Public | 0.87% | 27.16% |
| Total | 100.00% | 100.00% |
Peer Comparison
The report identifies Technocraft Industries as a listed peer and notes that it has a scaffolding and formwork business as well as drum closures, textiles and engineering services. It says operating margins in Technocraft’s scaffolding and formwork business are 13% to 14%.
| Particulars | Msafe FY23 | Msafe FY24 | Msafe FY25 | Msafe H1-FY26 | Technocraft FY23 | Technocraft FY24 | Technocraft FY25 | Technocraft H1-FY26 |
|---|---|---|---|---|---|---|---|---|
| Operating Revenues | 29.7 | 48.1 | 71.3 | 49.0 | 1,985 | 2,182 | 2,596 | 1,385 |
| PAT | 3.6 | 6.6 | 13.0 | 10.5 | 267 | 264 | 256 | 156 |
| EBITDA % | 30.9% | 31.4% | 36.6% | 39.2% | 20.3% | 18.3% | 16.0% | 17.0% |
| PAT % | 12.3% | 13.6% | 18.2% | 21.4% | 13.1% | 11.7% | 9.5% | 11.3% |
| Current M.Cap & PE(x) basis FY25 PAT | INR 298 Cr. & 22.9x | INR 5,232 Cr. & 20.4x |
Our View
The company’s business combines equipment sales with rental services, and the report sets out plans to expand manufacturing capacity and product offerings. Its financial projections are accompanied by risks around receivables, leverage and possible margin moderation. The note provides valuation metrics but does not state an investment recommendation or target price.
Standard disclosures
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Regulatory disclosures
Minerva Capital Research Solutions is an independent investment advisory firm founded by Nishant Gupta(SEBI registration no. INH000018896).
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For any queries or grievances: Mr. Nishant Gupta | Email: nishant.gupta@mcapital.in or guptanishant.iimi@gmail.com | Contact Number: 8171433387 | Website: www.mcapital.in | Twitter: @Mcapital_In