LCC Projects

IPO Size: Rs. 427 cr

• 60% of IPO is Fresh Issue of Rs. 258 cr (6% dilution) for (i) capex Rs. 15 cr (ii) repaying Rs. 180 cr of Rs. 800 cr gross debt  
• 40% IPO is Offer for Sale (OFS) of Rs. 169 cr by promoter (100% holding to reduce to 90%)

Price band: Rs. 139-146 per share

M cap: Rs. 4,229 cr (IPO is 10% of m cap)

IPO Date: Wed 9^th Sep to Fri 11^th Sep 2026, Listing Thu 17^th Sep 2026

Grey Market Premium (GMP): We are strongly against ‘grey market premium’ as it is an unofficial figure, against SEBI guidelines.

 

Water EPC Company

LCC Projects is a 30-year-old Ahmedabad based engineering, procurement and construction (EPC) company engaged in irrigation and drinking water supply projects, mainly across Gujarat, Madhya Pradesh and Rajasthan. As of 31.3.26, its order book of Rs. 7,953 cr represents a book-to-bill of 2.2x, with 80%+ being irrigation and water projects and balance being mining, rail and road EPC projects.

 

Growing Financials

In the last 4 years, company’s order book has risen at 42% compounded annual growth rate (CAGR) with revenue rising at 47% CAGR, from Rs. 781 cr in FY22 to Rs. 3,600 cr in FY26. EBITDA margin for FY26 was 13.3% with 7.9% net margin, on PAT of Rs. 283 cr. On a large equity of Rs. 136 cr (face value of Rs. 5 each), EPS was Rs. 10.4.

 

Healthy RoE

As of 31.3.26, on net worth of Rs. 888 cr, company’s net debt is Rs. 400 cr, which will reduce to 161 cr post IPO, translating into a net debt to equity ratio of 0.1:1 and net debt to EBITDA of 0.25:1.

Company clocks RoE of above 30%, with FY26 RoE of 32%, as its working capital is well-managed (despite approximately 80% revenue from Government entities) and fixed asset turnover ratio is ~20x. While RoE will contract post IPO, its is estimated to be over 25% even for FY28E, which is very healthy.
 

Attractive Pricing

M cap of Rs. 4,229 cr and Enterprise Value of Rs. 4,390 cr implies a current year PE multiple of 10x and an EV/EBITDA multiple of 7x, based on FY27E estimated EPS of Rs. 14. This is attractive for the healthy order book, size of operations, mid-twenties RoE going forward and just 10% public float post IPO.

Most water EPC peers are ruling at much higher multiples or facing company level challenges:

• Enviro Infra is trading at a PE multiple of 18x for higher margins but a smaller topline
• Recently listed Technocraft Ventures is trading at 30x, for 1/10^th topline of LCC. 
• EMS is at PE of 30x despite YoY declining topline and bottomline in FY26
• Denta Water with just Rs. 250 cr topline, but 24% net margin, has 14x PE for a patchy promoter track record.