Axiom Gas Engineering SME IPO

Strengths · 8

• 01Profit has grown every year, from Rs 5.74 crore in FY2024 to Rs 7.75 crore in FY2025 and Rs 9.45 crore in FY2026.
• 02Sales have grown steadily, from Rs 74.54 crore in FY2024 to Rs 89.85 crore in FY2025 and Rs 100.78 crore in FY2026.
• 03Return ratios are strong, with RoCE of 28.90% and RoNW of 28.40%, and a PAT margin of 9.38%.
• 04Debt is low and falling. Total borrowing was Rs 16.06 crore against a net worth of Rs 33.28 crore, a debt to equity ratio of 0.48, down from Rs 20.12 crore in FY2024.
• 05It earns from several different lines, covering engineering, turnkey projects, statutory testing, consultancy and maintenance, rather than one activity.
• 06Owning more than 20 PRIMEFUEL dispensing stations gives it a retail income stream alongside the project work.
• 07Statutory testing and certification of hydrocarbon equipment is a licensed activity, which keeps casual competition out.
• 08It has a record of nearly 20 years and Rs 27.60 crore of the issue money goes into capital expenditure.

Risks · 9

• 01Growth is modest. Total income rose about 12% in FY2026, which is slow compared with the other SME issues in this batch.
• 02Auto LPG demand depends on the price gap between LPG, petrol and CNG. If that gap narrows, motorists switch away and station volumes fall.
• 03The retail network is concentrated in a few states, mainly Telangana, Karnataka and Maharashtra.
• 04Handling LPG, CNG and LNG carries real safety risk. An incident at a station or installation would bring both liability and regulatory consequences.
• 05Pressure vessels are made through third party collaboration, so the company does not control that part of its supply.
• 06This is a small company, with a net worth of Rs 33.28 crore.
• 07Government policy on cleaner fuels drives much of the demand for this kind of engineering work, and policy can change.
• 08Promoter holding will come down from 98.28% to 72.15% after the issue.
• 09This is an SME issue. One lot is 2,000 shares, which is about Rs 1.06 lakh at the upper band of Rs 53, and SME shares usually trade in low volume after listing.

Axiom Gas Engineering Ltd was started in 2007. It works in what it calls green energy engineering, meaning it builds and services the systems that handle cleaner fuels such as Auto LPG, CNG and LNG, for both retail outlets and industrial users.

Its work covers several areas. In gas and pipe engineering it designs, installs and maintains gas systems for industrial and commercial use. It provides turnkey services for LPG and CNG retail outlets, bottling plants and bulk installations, meaning it takes a project from the idea stage right through to completion. It also carries out statutory testing and certification of hydrocarbon equipment to meet safety rules, gives technical consultancy on equipment design, and runs maintenance and training programmes. Pressure vessels are manufactured through third party collaboration rather than in its own plant.

Alongside this engineering work it owns and runs a retail fuel network. It operates more than 20 Auto LPG Dispensing Stations under the brand PRIMEFUEL, spread across several states including Telangana, Karnataka and Maharashtra.

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