Tempsens Instruments

Tempsens Instruments

By Geetanjali Kedia
about 24 days ago

IPO Size: Rs. 650 cr

  • Fresh Issue of Rs. 95 cr (4% dilution) for (i) Rs. 18 cr capex (ii) repayment of Rs. 55 cr of Rs. 87 cr gross debt
  • Offer for Sale (OFS) of Rs. 555 cr – 45% of OFS by promoter group (81% to drop to 66%) and balance by 2 individual shareholders (17% to drop to 6% post IPO)  

Price band: Rs. 285-300 per share

  • Secondary sale at Rs. 248 per share for 2.5% equity in Dec 2025

M cap: Rs. 2,515 cr (IPO is 26% of m cap)

IPO Date: Thu 20th Aug to Mon 24th Aug 2026, Listing Fri 28th Aug 2026

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

 

India’s Largest Temperature Sensor Maker

Tempsens Instruments is a 36-year-old Udaipur-based manufacturer of contact and non-contact temperature sensors and electrical heaters used in power, petrochemical, metal industries. Tempens is India’s only non-contact temperature sensors manufacturer, commanding a 21% market share.

Its revenue is divided into 3 product categoriess:

  1. Temperature Sensing Solutions: accounts for 45% of Rs. 445 cr topline, used in power generation, steel, aluminium, railway, pharmaceutical, food, aerospace, defence, nuclear, glass, and petrochemical industries
  2. Specialised Cables: 35% of topline, comprises low voltage control and power wire/cable, instrumentation cable, thermocouple & RTD cable for industrial applications
  3. Electrical Heating Solutions: 20% of topline, used in oil and gas, petrochemicals, energy storage, plastics, aerospace, pharmaceuticals, metal, nuclear, automotive, power generation, and food processing

 

Integrated Manufacturing Capability

Company has 15 backward integrated facilities - 10 in India, and 1 each in UAE, Korea, Indonesia, Germany, Poland. It is expanding a 16th facility in Mexico and undertaking Rs. 18 cr capex for augmenting installed capacity of electrical heating by 7.5% & specialised cable by 12% (capacity utilization at 89% in FY26).

As of 31.3.26, company’s net fixed assets stand at Rs. 113 cr. It has added Rs. 56 cr worth of plant and machinery in the last 3 fiscals and operates on a fixed asset turn of over 3x.

Company serves over 1,000 customers and garners 28% revenue from exports, mainly to Europe, Asia Pacific and Middle East Africa regions. 

 

High Margin Business

In past 3 fiscals, revenue has grown at 23% CAGR to Rs. 445 cr in FY26, while PAT has grown at 29% CAGR to Rs. 71 cr in FY26. Focus on indigenisation results in high entry barriers and margin, clocking 46% gross margin, 22% EBITDA and 16% net margin. Moreover, revenue mix comprises 2/3rd from projects (OEM supply) and 1/3rd from replacement and maintenance (MRO), providing high revenue visibility from maintenance. On an equity of Rs. 32 cr (with an uncommon face value Rs. 4 each), FY26 EPS stood at Rs. 8.33.

 

Attractive Pricing

M cap of Rs. 2,515 cr and an Enterprise Value of Rs. 2,487 cr implies a historic PE multiple of 36x. Assuming 15% profit growth for FY27E, on estimated EPS of Rs. 10, the current year PE multiple of 30x is seen attractive for high margin product profile, 15% RoE and net debt free balance sheet. While topline is not very large, company’s products are critical in manufacturing sector, with power and manufacturing sectors presently witnessing tailwinds.