Last Updated on February 21, 2026 by Rajat Bhati
India’s transformer industry is growing rapidly; this is fueled by growing railway infrastructure, AI, and real estate and infrastructure growth. Capitalizing on this opportunity, Accord Transformer & Switchgear is debuting its BSE SME IPO on 23 Feb. This IPO may seem tempting on the surface, but is it worth investing in? Does the INR 46 price tag make it a value buy, or should one of its peers be considered? You’ll find answers to these questions layer by layer in our Accord Transformer IPO peer comparison analysis.
Accord is a “Micro-cap” player entering a playground dominated by giants. However, its growth velocity is what catches the eye. With a 62.8% Revenue Growth in FY25, it is outpacing the industry leader Voltamp (19.2%).
Accord Transformer IPO Peer Comparison: Financial Efficiency
At first glance, Accord’s ROE of 43.90% looks like an anomaly compared to Danish Power’s 28.9% or Voltamp’s 21.7%.
| Metric | Accord Transformer | Danish Power | Voltamp Transformers | TRIL |
| Revenue Growth (%) | 62.81 | 28.34 | 19.20 | 55.98 |
| EBITDA Margin | 11.49 | 20.57 | 22.33 | 17.51 |
| PAT Margin | 7.66 | 13.50 | 16.82 | 10.72 |
| ROE (%) | 43.90 | 28.90 | 21.70 | 23.59 |
| Debt-to-Equity | 0.55 | 0.01 | 0.00 | 0.22 |
- The Leverage Play: Accord’s high ROE is partially driven by its Debt-to-Equity (0.55). While Danish and Voltamp are virtually debt-free, Accord uses moderate leverage to fuel growth. This magnifies returns for shareholders but increases risk during high-interest-rate cycles.
- Asset Sweating: To maintain these returns with lower margins (7.66% vs Voltamp’s 16.82%), Accord must be “sweating” its assets harder—meaning they are generating more sales for every rupee invested in machinery.
Accord Transformer Valuation Gap: Is the Market Mispricing Accord?
The most striking part of this Accord Transformer IPO peer comparison is the valuation discount.
| Valuation Metric | Accord (At Upper Band) | Danish Power | Voltamp | Peer Average |
| P/E Ratio | 10.57 | 19.50 | 23.50 | ~21.50 |
| P/B Ratio | 3.21 | 3.76 | 5.06 | 4.41 |
| P/S Ratio | 1.20 | 2.76 | 3.85 | 3.30 |
| Current Ratio | 1.41 | 3.71 | 3.10 | 3.40 |
- Price-to-Sales (P/S) Arbitrage: Accord is being offered at 1.20x Sales, while Danish Power trades at 2.76x. If Accord’s post-listing valuation even moves halfway toward the peer average, investors could see massive gains.
- Liquidity Stress Test: The Current Ratio of 1.41 is a yellow flag. It’s significantly lower than peers (>3.0). This suggests that Accord’s working capital is tightly stretched. The IPO proceeds (Fresh Issue of INR 25.59 Cr) are crucial here to provide the much-needed liquidity cushion.
Accord Transformer IPO: Risks vs. Moats
- Geographic Concentration Risk: Accord gets 56.06% of its revenue from Gujarat. While Gujarat is a power hub, any policy shift or localized economic slowdown in the state could hit Accord harder than its diversified peers like Voltamp or TRIL, who have a pan-India presence.
- Product Versatility: Unlike many SME players who only make distribution transformers, Accord has a diversified portfolio including Dry-type, Solar, and EV Charging transformers. This “Special-duty” segment usually commands higher margins and provides a moat against commoditized players.
Final Verdict
Accord Transformer is clearly the “Underdog” in this comparison.
- Value Play: At a P/E of 10.57, it is objectively cheap.
- Growth Play: A 62%+ growth rate in a booming sector is hard to ignore.
- Risk Play: Current Ratio and geographic concentration are the trade-offs for this low valuation.
If you are conservative Voltamp or Danish Power are proven winners. But if you are looking for a Value-Unlock opportunity where the upside potential is significantly higher due to valuation re-rating, Accord Transformer is a compelling candidate.
