Shares of Prostarm Info Systems Ltd surged over 11% in intraday trade on Tuesday, continuing their upward trajectory since the company’s market debut last month. The stock has delivered an impressive rally of nearly 62% within a month, reflecting strong investor interest and optimism around its business outlook.
Strong debut and sustained rally
Prostarm Info Systems, which provides end-to-end power solutions and services including UPS systems, inverters, and batteries for enterprises, listed on the NSE SME platform on June 7, 2025. The stock was listed at a premium of around 30% to its issue price, and has since maintained consistent buying interest.
Market analysts attributed the rally to:
- Robust financial performance: The company reported strong revenue and profitability growth in FY24, indicating business scalability and execution strength.
- Healthy order book: Prostarm has a diversified client base across sectors like banking, healthcare, IT, and government utilities.
- Favourable sector outlook: Rising demand for uninterrupted power solutions due to digital infrastructure growth and power supply challenges in tier-2 and tier-3 cities.
Prostarm Info Systems: Key financials
| Particulars | FY23 | FY24 |
|---|---|---|
| Revenue | ₹68 crore | ₹83 crore |
| EBITDA | ₹8.2 crore | ₹10.1 crore |
| Net Profit | ₹4.3 crore | ₹5.8 crore |
| EBITDA Margin (%) | 12.1% | 12.2% |
The company’s order book as of May 2025 stood at ₹45 crore, giving visibility for the upcoming quarters.
IPO performance and investor sentiment
Prostarm’s IPO was subscribed 93.4 times, reflecting strong interest from retail and institutional investors. The IPO had raised ₹31.88 crore, with proceeds earmarked for:
- Working capital requirements
- Product expansion and technology upgradation
- General corporate purposes
Stock performance since listing
| Date | Closing Price (₹) | Change (%) |
|---|---|---|
| Listing Day (June 7) | 139.50 | +30% over issue price |
| One Week Later | 154.20 | +10.5% |
| End of June | 163.70 | +17.3% |
| Current (July 9) | 178.20 | +11% intraday, +62% overall |
Analyst commentary
Brokerages tracking the SME sector stated that the rally is backed by fundamentals and reasonable valuations. However, they advised investors to remain cautious given the sharp run-up and low free float in SME stocks.
- Choice Broking highlighted the company’s leadership position in UPS systems under 200 kVA segment, and consistent execution in service maintenance contracts as key growth levers.
- BP Equities pointed out risks such as working capital cycles and dependency on vendor tie-ups but maintained a positive near-term outlook.
Industry context: Rising UPS and power solutions market in India
The Indian uninterruptible power supply (UPS) market is projected to grow at a CAGR of 8.5% over FY24-FY28, driven by factors such as:
- Increased data centre investments by telecom and cloud players
- Growing need for reliable power solutions in healthcare, banking, and education sectors
- Government push for digital infrastructure and smart cities
Prostarm Info Systems, with its strong service network across 80+ locations and multi-brand product portfolio, is well-positioned to capitalise on this opportunity.
Management outlook
Speaking after the stock rally, Prostarm MD P.S. Rajan stated:
“Our focus remains on expanding our product range with energy-efficient solutions, increasing AMC service contracts, and enhancing working capital efficiency to maintain growth momentum.”
The company is also exploring partnerships with global brands to expand its solution offerings in the mid-to-large scale UPS segment.
Future strategy and investor takeaway
Key initiatives lined up for FY26 include:
- Launching lithium-ion battery-based UPS solutions
- Strengthening presence in Eastern and North Eastern India
- Enhancing digital service platforms for AMC customers
Market experts believe that the company’s strong fundamentals, scalable business model, and robust demand environment could support further re-rating. However, they caution investors about potential volatility and low liquidity typical of SME stocks.
Disclaimer
This news article is for informational purposes only and should not be construed as investment advice. Readers are advised to consult certified financial advisors before making any investment decisions.
