Innovators Facade Systems, the niche façade engineering and building maintenance company, has bagged an order worth INR 48.82 crore from M/S EBISU Tech Park. This is a big win for the company especially since Vijay Kedia is an investor in the company with 10.66% stake.
The order is for design, fabrication, supply and installation of façade and Building Maintenance Unit (BMU) systems for the prestigious SWIFT Project in Bengaluru, Karnataka. The project will be completed in 14 months from the start of work and adds to the company’s order book and visibility in the real estate infrastructure space.
Strong Fundamentals Behind a Strategic Win
Innovators Facade Systems, with a market cap of INR 371.70 crore, is a specialized player in the construction value chain. The company offers end-to-end façade solutions including unitized and semi-unitized glazing systems, stick systems, skylights and spider glazing for commercial and high-end residential projects across India.
From a financial perspective, Innovators Facade has delivered strong numbers in recent quarters. H1FY25 results:
- Net sales up 14% YoY from INR 100 crore in H1 FY24 to INR 114 crore.
- Net profit up 60% from INR 5 crore to INR 8 crore.
- FY24 net sales INR 215.11 crore, up 18.7% YoY.
- FY24 net profit INR 15.26 crore, up 81.2%.
Working capital days have also come down significantly from 195 to 121 days indicating better receivables and inventory management.
Valuation & Market Sentiment
Currently, the stock is trading at INR 197 per share, the stock is up 22% from its 52-week low of INR 141.05 per share and has given 1,000% returns in 5 years making it a clear multibagger. The valuation looks reasonable with the stock quoting at P/E of 24.08 which is slightly above the industry average of 23.8. But PEG ratio of 0.03 indicates undervaluation when adjusted for earnings growth.
Profitability metrics support the investment thesis:
- ROE: 12.06%
- ROCE: 16.89%
- ROA: 6.5%
Vijay Kedia’s Bet
Value investor Vijay Kedia holds 20,10,632 shares (a 10.66% stake in the company) worth INR 39.6 crore. Kedia is known for his contrarian and long-hold investment strategy and has a track record of identifying multibagger opportunities in micro and small-cap spaces. His continued holding in the company indicates strong conviction in the company’s long term growth.
Current shareholding pattern:
- Promoter Holding: 63.71%
- Public Holding: 26.63% including Kedia’s 10.66%
Innovators Facade Systems Post-IPO Performance
Innovators Facade Systems launched its IPO on 14 May 2018, the IPO was sized 40.76 crore and a totally fresh issue. The IPO was subscribed 33.5X and listed with 5% returns. Innovators Facade Systems shares were trading around INR 16 per share in May 2020, and made an all-time high of INR 281.95 per share on 24 Jan 2025, reflecting a multibagger return of ~1,656% in the last 5 years. Currently, it is trading around INR 197 per share (a correction of ~29% from all-time high)
Conclusion
The recent order from EBISU Tech Park has further established Innovators Facade Systems as a player in complex façade and BMU systems. With improving financials, strong return ratios and institutional and promoter confidence, the company is well placed to grow in the infrastructure driven real estate space.
For long-term investors with a high-risk appetite, especially in the micro-cap space, Innovators Facade remains a stock worth tracking closely—more so when it carries the seal of approval from a market veteran like Vijay Kedia.
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