L&T Elevator Goes Public: Should You Invest in This Kolkata Elevator Company?

A Kolkata based elevator company is raising money from the public for the first time. Here's what investors need to know.

L T Elevator, a company that makes and services elevators, has opened its IPO today. They are looking to raise about ₹40 crores by selling shares to the public on the BSE SME exchange.

What’s the Deal?

The company is selling shares between ₹76 to ₹78 each. If you want to buy, you will need to invest at least ₹2.5 lakhs that gets you 3200 shares. The IPO is open from September 8 to 12, and the shares will start trading on September 15.

About L&T Elevator

This is not a startup. L T Elevator has been around since 2008. They are based in Kolkata and mainly serve customers in eastern India. They design, build, install, and maintain elevators.

Last year, they made ₹56.74 crores in revenue. That is decent growth for a regional company in this business.

Why This Matters

India is building up, literally. More high rise apartments, office buildings, and shopping malls mean more elevators are needed. The government’s Smart Cities project is also pushing demand.

L T Elevator has found its sweet spot serving customers who want good quality without paying premium prices that big international brands charge.

The Good News

They make money consistently and it is growing
They have repeat customers with maintenance contracts providing steady income
Less competition in eastern India compared to major cities
The elevator market in India is expanding rapidly

The Concerns

They are heavily dependent on construction activity, which goes up and down
Only operating in one region limits how big they can grow
Big international companies like Otis and Schindler have deeper pockets
Running an elevator business needs a lot of working capital

What the Numbers Say

The company’s return on investment is 25.42 percent, which is impressive. Their profit margins have grown by over 40 percent in the last year. These are signs of a well managed business.

At ₹78 per share, the entire company would be worth about ₹93 crores after the IPO.

Our Take

L T Elevator looks like a solid regional business that has found its niche. They are not trying to compete with the big players directly, but instead focusing on serving their market well.

The elevator business in India has good long term prospects thanks to urbanization. However, this is still a cyclical business. When construction slows down, elevator sales follow.

Bottom line: This could work for investors who want exposure to India’s infrastructure story and do not mind some ups and downs. It is not a get rich quick stock, but rather a steady business in a growing market.

How to Apply

You can apply through your broker or online trading platforms that handle SME IPOs. Remember, you need to invest at least ₹2.5 lakhs.

Word of caution: SME stocks can be less liquid than main board stocks, so make sure you are comfortable holding for the long term.

This analysis is based on publicly available information. Do your own research and consult a financial advisor before investing.