Savy Infra and Logistics Ltd

About Savy Infra and Logistics

Incorporated in Gujarat in 2006, the company provides EPC services focused on earthwork and foundation preparation for infrastructure projects, including roads, embankments and concrete surfaces. It has expanded into logistics for excavated materials, offering integrated services across infrastructure, steel and mining. The company operates an asset-light model, outsourcing trucking, machinery and equipment to third-party contractors.

Savy Infra and Logistics IPO Details

Objects of Issue (INR Cr.): Funding working capital requirements: 49.00*. General Corporate Purpose: [●]. *Estimated deployment: INR 15 Cr. in FY26 & INR 34 Cr. in FY27.

Strengths

• Order book visibility: The report highlights an order book of INR 430 Cr.+. It lists 12 ongoing projects with a balance of INR 201.42 Cr. and confirmed upcoming projects worth INR 230.56 Cr.
• Integrated, asset-light operations: The company manages excavation, removal and disposal of material, and foundation preparation, while outsourcing trucking, machinery and equipment needs to contractors.
• Planned green logistics: It plans to introduce EV trucks procured on lease, which the report expects to reduce operating costs and improve margins.
• Experienced team: The company has 33 full-time employees and 500 contract workers hired from contractors.

Order Book and Revenue Mix

The report lists upcoming confirmed projects across Maharashtra, Gujarat and Odisha, representing 66%, 18% and 16% of that order book, respectively. EPC accounted for 80% of FY25 revenue and logistics for 15%; others contributed 5%. Direct work represented 74% of FY25 revenue, while subcontracting represented 26%.

Customer concentration has declined: the top 3 customers accounted for 68% of FY25 revenue, compared with 80% in FY24. The top customer contributed 50% in FY25.

Savy Infra and Logistics Key Financials

IPO Valuation and Our View

The issue is valued at 10.5x P/E based on FY25 PAT. The research recommendation is Subscribe, citing the promoter and management experience, order-book visibility, planned green logistics and integrated asset-light operations.

INR 114 to 120 per share

IPO price band

~INR 249.70 Cr.

Market capitalisation

10.5x

P/E based on FY25 PAT

Subscribe

Recommendation

Shareholding

Peer Comparison

The report compares Savy Infra with AVP Infracon, Ganesh Infraworld, Active Infrastructure and Suntech Infra. Savy Infra's FY25 P/E ratio is listed at 10.5x; the report notes that Suntech Infra's FY25 results were awaited and its P/E uses expected PAT of INR 14.5 Cr.

Key Risks

• Working capital and cash flow: Operations are working-capital intensive, and CFO had yet to turn positive. The report describes an EPC order cycle involving 30 to 45 days for review and negotiation, 30 to 365 days of execution, and 30 to 60 days for payment processing after completion.
• Margin variability: Margins may vary due to higher subcontracting expenses.
• Receivables and operating margins: Improvement in operating profit margins and realization of INR 5.4 Cr. of trade receivables outstanding for 1-2 years remain key monitorables.

Our View

Minerva Capital Research Solutions recommends Subscribe, based on the order book, integrated asset-light model and planned entry into green logistics. Working-capital intensity, negative CFO and margin variability are key risks to monitor.

Standard disclosures

• Research Analyst has served as an officer, director or employee of subject company(ies): No
• We or our associates have received compensation from the subject company(ies) in the past 12 months: No
• We or our associates have managed or co-managed public offering of securities for the subject company(ies) in the past12 months: No
• We or our associates may have received compensation for investment banking or merchant banking or brokerage services from the subject company(ies) in the past 12 months –No
• We or our associates may have received compensation or other benefits from the subject company(ies) or third party in connection with the research report –No
• We or our associates or Research Analyst or his/her relative's financial interest in the subject company(ies)- No
• Nature of financial interest in subject company, if any –Nil
• We, our associates or Research Analyst have actual/beneficial ownership of 1% or more securities of the subject company (ies) at the end of the month immediately preceding the date of publication of Research Report – No
• Subject company (ies) may have been client during twelve months preceding the date of distribution of the research report-No.
• We or our Associates or Research Analyst are engaged in market making of subject company – No
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Regulatory disclosures

Minerva Capital Research Solutions is an independent investment advisory firm founded by Nishant Gupta(SEBI registration no. INH000018896).

Registration granted by SEBI and certification from NISM in no way promise or guarantee that the research recommendation will provide any assured, minimum or risk-free return to the investors.

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Rating rationale

Minerva Capital Research Solutions endeavors to provide objective opinions and recommendations. Ratings are assigned to stocks according to their fair value vs current market price and then categorizes them as Buy, Hold, Reduce, Sell. The performance horizon is one year unless specified and fair value is defined as analyst’s valuation for a stock.

• Buy: > 15%
• Hold: -5% to 15%
• Reduce: -15% to -5%
• Sell: <-15%