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 β no private exposure β 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 βΉ300+ 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: 8β10 regular vendor partners + 30β35 on-demand.
End-to-end model: Design Procurement
Execution
AMC
Massive Healthcare Opportunity in India
β’ 3M+ hospital beds required to meet WHO norms
β’ FY25 health budget: βΉ98,000+ crore
β’ Central push for one medical college per district = βΉ60β80 cr per project
β’ Govt prefers turnkey bidders to reduce cost, time, and complexity
FY25 Performance
β’ Revenue: βΉ136 cr (2x YoY)
β’ PAT: βΉ16 cr (12% margin)
β’ ROE: 37%, ROCE: 26%
β’ βΉ60 cr order book (next 5β6 months)
β’ FY28 revenue target: βΉ600 cr with similar margins
If executed β 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 β Aprameya is among the few with this track record
Business Moat
Turnkey Delivery β End-to-end from design to install to AMC
Entry Barriers β Large tender eligibility filters out smaller/regional players
OEM Partnerships β J&J, Philips, Schiller, ResMed etc. = faster delivery & exclusive products
Innovative Offerings β Mobile CTs, EP Labs, Mobile Stroke Units, Robotic Surgery
Recurring Revenue Kick-in β CAMC/AMC post-warranty (5β8 yr contracts) from FY26
Working Capital
β’ Govt pays ~80% only post-completion
β’ Majority of billing happens in March β Receivables spike
β’ βΉ120 cr+ receivables at FY25-end = timing issue, not bad debts
β’ Collections expected in Q1; debtor cycle improved from 8 to 6 months; targeting 4β5 months
β’ βΉ29 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 canβt qualify for large βΉ50β80 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