Johnsoncab Electricals Company IPO analysis

Johnsoncab Electricals is launching its IPO between October 30 and November 3 at a fixed price of ₹200 per share to raise ₹56 crore The company manufactures lowvoltage electrical wires and cables While the firm shows revenue growth and acceptable margins, several red flags exist regarding financial reporting and management integrity The company exhibits high trade receivables and elevated inventory levels, suggesting aggressive production reporting to justify expansion needs via IPO funds Furthermore, promoters continue to lease their personal properties to the company, missing an opportunity to build longterm value for shareholders The current valuation at a 2.1 to 2.2 P/B ratio appears attractive compared to peers, which trade at 3 to 5 PB While Category 3 AIFs have participated as anchor investors, their tendency for shortterm profit booking presents a volatility risk The business is not currently creating significant cash flow, and client retention appears unstable Investors should adopt a cautious approach, focusing on postlisting performance rather than aggressive bidding Given the management's questionable record, waiting for the September quarterly results is advised before committing capital