Aprameya Enginneering

Starting a discussion on Aprameya Engineering:

Business Summary
Aprameya is a turnkey healthcare infra specialist. They set up ICUs, NICUs, PICUs, modular OTs, dialysis centres, prefabricated wards, mobile CTs, robotic surgery units etc.
They work only with government clients via tenders – no private exposure – giving them access to large, bundled projects with less competition.

Proven, Focused Promoters
Founded in 2003 by engineers with 20+ years of domain expertise.
Successfully executed β‚Ή300+ cr worth of healthcare infra.
Appreciated by Rajasthan govt for performance. Now expanding into Gujarat, Maharashtra & 7 more states by FY28.

High-Margin, Scalable Business
90% of revenue from EPC turnkey projects with ~18% EBITDA margins.
Lean structure: 8–10 regular vendor partners + 30–35 on-demand.
End-to-end model: Design :right_arrow: Procurement :right_arrow: Execution :right_arrow: AMC

Massive Healthcare Opportunity in India
β€’ 3M+ hospital beds required to meet WHO norms
β€’ FY25 health budget: β‚Ή98,000+ crore
β€’ Central push for one medical college per district = β‚Ή60–80 cr per project
β€’ Govt prefers turnkey bidders to reduce cost, time, and complexity

FY25 Performance
β€’ Revenue: β‚Ή136 cr (2x YoY)
β€’ PAT: β‚Ή16 cr (12% margin)
β€’ ROE: 37%, ROCE: 26%
β€’ β‚Ή60 cr order book (next 5–6 months)
β€’ FY28 revenue target: β‚Ή600 cr with similar margins
If executed – stock is trading at <2x FY28 forward P/E = huge upside

How They Get Business
β€’ 100% tender-driven govt projects
β€’ Tenders usually float in H2 (post budgeting in H1)
β€’ Tenders are bundle-based (infra + equipment + installation + training)
β€’ Most have strict eligibility: prior execution of 80% of similar project size
Very few companies qualify – Aprameya is among the few with this track record

Business Moat

:check_mark: Turnkey Delivery – End-to-end from design to install to AMC
:check_mark: Entry Barriers – Large tender eligibility filters out smaller/regional players
:check_mark: OEM Partnerships – J&J, Philips, Schiller, ResMed etc. = faster delivery & exclusive products
:check_mark: Innovative Offerings – Mobile CTs, EP Labs, Mobile Stroke Units, Robotic Surgery
:check_mark: Recurring Revenue Kick-in – CAMC/AMC post-warranty (5–8 yr contracts) from FY26

Working Capital
β€’ Govt pays ~80% only post-completion
β€’ Majority of billing happens in March β†’ Receivables spike
β€’ β‚Ή120 cr+ receivables at FY25-end = timing issue, not bad debts
β€’ Collections expected in Q1; debtor cycle improved from 8 to 6 months; targeting 4–5 months
β€’ β‚Ή29 cr IPO proceeds (Aug 2024) used to support WC + scale-up

Competition Landscape

β€’ No listed peer in India with similar turnkey + EPC + medical infra blend
β€’ Small regional players exist but can’t qualify for large β‚Ή50–80 cr tenders due to lack of experience
β€’ Aprameya has strong entry barriers due to proven execution + vendor network + exclusive OEM deals
β€’ Mgmt confirms 80% of tenders are out of reach for newer/smaller players

Risks
β€’ 100% dependency on govt business
β€’ WC-heavy business due to project timing
β€’ Execution challenges while expanding into 7 new states

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