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The upcoming IPO of Pace Digitek has generated significant curiosity among investors. With its roots in telecom passive infrastructure and diversification into energy and ICT solutions, the company has undergone a remarkable transformation in just a few years. The IPO is not merely about raising fresh capital; it is about evaluating whether Pace Digitek’s fundamentals justify its positioning in a competitive industry.
In such scenarios, Pace Digitek peer comparison analysis becomes crucial. Investors often benchmark a new listing against existing players to assess valuation comfort, growth potential, and operational efficiency. In this Pace Digitek IPO vs peers analysis, we focus on where the company stands vis-à-vis its listed peers and whether its strengths position it as a compelling investment option.
Table of Contents
Pace Digitek IPO: Company Snapshot
Pace Digitek presents itself as a multi-disciplinary solutions provider, straddling three major verticals:
- Telecom Passive Infrastructure – the company’s backbone, contributing more than 94% of FY25 revenues.
- Energy Solutions – telecom power equipment and lithium-ion battery racks, an emerging growth driver.
- ICT Services – currently a minor contributor, but strategically important for long-term diversification.
The company’s operations are backed by three large manufacturing facilities in Bengaluru spanning over 2,00,000 sq. ft. With 1,296 permanent employees and presence in both India and select international markets (Myanmar and Africa), Pace Digitek combines scale with execution capabilities.
Importantly, the company boasts an order book of INR 7,633.62 crore as of March 2025, entirely from public sector clients. While PSU concentration brings execution and payment cycle risks, it also ensures strong revenue visibility. On the governance front, the business remains promoter-led, with the Maddisetty family holding over 86% pre-issue equity, signaling commitment and long-term skin in the game.
Pace Digitek IPO vs Peers: Financial KPIs
Financial performance often separates established players from emerging challengers. While HFCL has the scale and Bondada the momentum, Pace Digitek is positioning itself as a profitability leader.
Pace Digitek IPO Peer Comparison: Financial Metrics
| Particulars | Pace Digitek | HFCL | Exicom Tele-Systems | Bondada Engg |
|---|---|---|---|---|
| Revenue | 2,438.8 | 4,064.5 | 867.6 | 1,571.4 |
| EBITDA | 505.1 | 507.1 | (6.2) | 183.3 |
| EBITDA Margin (%) | 20.7% | 12.5% | (0.7%) | 11.7% |
| PAT | 279.1 | 173.3 | (110.0) | 115.4 |
| PAT Margin (%) | 11.4% | 4.3% | (12.7%) | 7.3% |
| EPS (INR) | 16.3 | 1.23 | (9.11) | 10.3 |
| ROE (%) | 23.1% | 4.2% | (17.9%) | 24.2% |
| ROCE (%) | 37.9% | 8.2% | (9.6%) | 27.4% |
- Scale vs Profitability: HFCL is the largest by revenue, but margins are just half of Pace Digitek’s, indicating that sheer scale has not translated into efficiency. Digitek has already surpassed HFCL in PAT despite lower revenues.
- Capital Efficiency: Pace Digitek’s ROCE of 37.9% is best-in-class, showing efficient use of capital. Bondada is next at 27.4%, while HFCL and Exicom trail far behind.
- Loss-Maker Contrast: Exicom is struggling with negative EBITDA and PAT, highlighting execution challenges despite being in high-growth EV & energy markets. Digitek’s strong bottom line makes it more reliable from a near-term investor perspective.
- Sustainability Check: Pace Digitek’s FY25 revenue growth looks flat after the FY24 leap, suggesting the company has shifted from a growth spurt to consolidation. But the profitability improvements are sticky, with double-digit PAT margins—rare in this sector.
Pace Digitek vs HFCL vs Exicom vs Bondada: Valuation & Balance Sheet Metrics
For IPO investors, valuations determine whether they are buying into a growth story at a reasonable price. Here, Pace Digitek shines.
Valuation & Leverage Ratios
| Particulars | Pace Digitek | HFCL | Exicom Tele-Systems | Bondada Engg |
|---|---|---|---|---|
| P/E (x) | 16.9 | 326 | NA | 39.0 |
| Price-to-Book (x) | 3.07 | 2.72 | 3.44 | 9.64 |
| Price-to-Sales (x) | 1.94 | 2.92 | 2.56 | 2.78 |
| Debt-to-Equity (x) | 0.13 | 0.37 | 1.15 | 0.41 |
| Current Ratio (x) | 1.72 | 1.86 | 1.74 | 1.46 |
- P/E Comfort: At ~17x, Digitek looks attractively priced versus Bondada at 39x and HFCL at 326x. This leaves room for valuation re-rating post-listing if execution sustains.
- Balance Sheet Strength: D/E of 0.13 makes Digitek the least levered among peers. Contrast this with Exicom’s D/E of 1.15, which signals balance sheet strain.
- Liquidity & Stability: Current ratio at 1.72x is healthy. While HFCL’s is slightly higher (1.86x), Digitek’s position is strong enough to handle working capital demands without over-leverage.
- P/B Context: Digitek’s 3.07x P/B is moderate—above HFCL but far below Bondada (9.64x), reflecting a balanced valuation that doesn’t overprice future expectations.
Operational KPIs
One of the key differentiators for Pace Digitek is its operational metrics.
Operational Metrics
| Particulars | Pace Digitek |
|---|---|
| Telecom Towers Installed | 3,740 |
| OFC Network Laid (kms) | 6,619 |
| Telecom Power Equipment (Units) | 4,234 |
| Lithium-Ion Battery Racks (Units) | 3,308 |
Strategic Advantages Highlighted by KPIs:
- Execution Scale: Installing nearly 3,800 towers and laying 6,600+ kms of OFC in FY25 demonstrates unmatched on-ground execution.
- Integrated Manufacturing Strength: In-house production of 4,200+ power equipment units and 3,300+ Li-ion racks ensures cost efficiency and supports industry-leading margins.
- Confidence Signal: By publishing hard operational data, Pace Digitek sets itself apart as a company willing to be measured by delivery, not just financials.
- Investor Visibility: Unlike peers, where revenues are abstract, Digitek gives a clear line of sight into how growth is being achieved, reducing uncertainty for investors.
Key Takeaway: Pace Digitek vs HFCL vs Exicom vs Bondada
From an investor’s lens, Pace Digitek combines the best of financial performance, operational scale, and valuation comfort.
Strengths:
- Profitability Leader: Double-digit PAT margins, ROE at 23%, and ROCE at 38% outperform peers.
- Robust Balance Sheet: Debt-to-equity of just 0.13 makes it the most conservatively financed among peers.
- Attractive Valuation: IPO priced at ~17x earnings—far below HFCL (326x) and Bondada (39x).
- Visibility of Revenues: INR 7,600+ crore PSU-backed order book ensures medium-term stability.
- Operational Edge: Clear operational disclosures enhance credibility and underscore leadership in execution.
Risks:
- PSU Concentration: Entire order book tied to public sector could mean bureaucratic delays. Yet, this provides assured contracts and low default risk.
- Sector Dependence: Telecom dominates revenue share. However, Energy and ICT verticals, though small, are positioned as future growth levers.
Conclusion
In the peer universe, every company has a story: HFCL commands scale, Bondada rides rapid growth, and Exicom taps futuristic EV-energy markets. But Pace Digitek brings together what matters most to investors:
- Superior margins across the board
- Higher return ratios (ROE & ROCE)
- Lowest leverage, strongest balance sheet
- Attractive entry valuations vs peers
- Unique operational disclosures as a strategic advantage
For investors looking at the telecom and energy infrastructure theme, Pace Digitek emerges as a well-rounded contender. It combines stability with growth potential, valuation comfort with operational visibility. Against peers either trading at steep valuations or grappling with losses, its fundamentals stand tall—making this IPO a compelling opportunity in the current market.