Synopsis Param Capital founder quietly picks up a stake in a newly listed Lucknow-based EPC company, betting on fire, power, and solar infrastructure growth.
Among the quieter disclosures following a recent SME IPO was a familiar name. Mukul Agrawal, founder of Param Capital and one of India’s most-watched ace investors, has taken a position in a small Lucknow-based infrastructure services company that went public in April 2026. The bet is modest in rupee terms but loaded with signal for investors who follow institutional smart money into emerging names.
Mukul Agrawal Backs a Lucknow-Based EPC Play
A Quiet Bet on a Fresh Listing
Mukul Agrawal holds a 2.7% stake in Safety Controls & Devices Ltd, worth a little over ₹5 cr at current prices. For an investor whose disclosed portfolio crosses ₹7,100 cr, this is barely a rounding error in absolute terms. But the choice of company tells a story worth reading.
Safety Controls & Devices is an EPC firm incorporated in 2015, headquartered in Lucknow. It started with fire-fighting systems before moving into power substations of up to 400 kV and utility-scale solar plants. Its clients include state power utilities, central PSUs, and renewable energy developers – a set of counterparties that lend some stability to an otherwise volatile order-book business.
The company listed on the BSE SME platform on April 13, 2026, at ₹79 per share. As of May 18, the stock trades at ₹90 – a 14% gain over its issue price in just over a month. Agrawal’s entry appears to be at or close to the IPO price, which adds weight to the conviction.
Four Years of Compounding That Stands Out
The financial track record justifies attention. Revenue grew from ₹27 cr in FY21 to ₹103 cr in FY25, a four-year compounded growth rate of 40%. EBITDA scaled from ₹2 cr to ₹17 cr at a compounded rate of 71%, with operating margins nearly doubling from 7% to 17%. Net profit moved from ₹1 cr to ₹9 cr over the same period, compounding at 73%.
This kind of margin expansion inside an EPC business – notorious for thin spreads and working-capital pressure – suggests the company has moved up the value chain and is winning better-priced contracts.
Return Ratios Above the Peer Pack
Return ratios reinforce this view. The ROCE stands at 29% against an industry median of 18%. The ROE is over 30%. Both are meaningfully above peer benchmarks for a capital-intensive, execution-driven sector.
Valuation and the SME Caveat
Valuation at the current price looks undemanding. The stock trades at a PE of 19.9, a discount to civil construction peers which are priced closer to the mid-twenties. If execution continues and the company scales its solar and substation order book, there is room for the market to rerate the stock higher.
That said, SME-listed stocks carry real practical risks – lot-based trading, thin liquidity, and limited disclosure history. A long-term PE comparison is not yet possible given the recent listing. Investors should treat those constraints as part of the risk calculus.
About the Company
Safety Controls & Devices Ltd is a Lucknow-based EPC company incorporated in 2015. It offers services across fire-fighting systems, power substations up to 400 kV, and utility-scale solar plants. Its clients include state power utilities, central PSUs, and renewable energy developers. The company listed on the BSE SME platform in April 2026.
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