Balaji Valve Components IPO (BSE SME) Overview

Balaji Valve Components IPO plans to raise Rs 21.60 crores. The issue is entirely a fresh issue of 21.6 lakh shares. Shri Balaji Valve Components Ltd. produces valve components for ball valves, butterfly valves and other valves, including forged products.

IPO opensDec 27, 2023
IPO ClosesDec 29, 2023
IPO Size (Rs.)₹21.60 Cr
IPO Size (shares)2,160,000 shares
BreakupFresh issue only
Face Value:₹ 10
IPO Price in Rs :₹95 to ₹100
Minimum Lot1200 Shares
Listing AtBSE SME
QIB ~50 %
NII Quota~15%
Retail Quota~35%
 Lead ManagerHem Securities Limited
RegistrarBigshare
Market makerHem Finlease

About Balaji Valve Components:

  • Company is mainly engaged in business of manufacturing of ready to assemble industrial valves components catering to different industries
  • It was founded in November 2011. Promoter has started a firm in 1993.
  • Shri Balaji Valve Components Ltd. produces valve components for ball valves, butterfly valves and other valves, including forged products.
  • The ISO 9001-2015 certified company, is engaged in the business of manufacturing of ready to assemble valve components catering to manufacturing of the valves which are used in different industries and in different size depending on the customer’s specifications. They manufacture and supply various types of valve components which are used in manufacturing of ball valves, butterfly valves and other valve including forging products. The valve components are used to manufacture valves which serve industries which are in different sectors.
  • They are into machining of components and delivering ‘Ready to assemble’ valve components according to customers designs and specifications. Currently, the company is operating from its 2 manufacturing facilities located at Pune, Maharashtra.
  • One of the manufacturing facilities is located at Bhosari, Pune which is equipped with the forging capabilities and heat treatment capabilities, the second manufacturing facility is located at Chakan MIDC, Bhamboli, Pune which undertakes the machining work.
  • They manufacture valve components using the forging method, bar routing method and casting methods. In case of any casting products, we generally get the casts manufactured from the customers nominated vendors or outsourcing. The use of methods depends upon the manufacturing plans, customer requirements, component manufactured, material complexity etc.

Financials: Balaji Valve Components

Particular/ Rs. Lacs30-Jun-23202320222021
Total Income1654.646294.13,906.051,616.49
Profit/(loss) after tax184.84643.15153.47-3.22
Share Capital600111
Net Worth975.66789.14144.64-10.85
Earnings per Share3.0810.722.56-0.05
Net Asset Value16.2613.152.41-0.18
Total Borrowings2879.492,877.992,799.711,399.54
Post issue Share Capital816   
FV10   
IPO price100   
EPS Fy237.9   
PE Fy2312.7   
EPS Fy24 (annualized)9.1   
PE Fy24  (annualized)11.0   
Market cap in Lacs8,160.0   
Market Cap/sales1.3   

Anchor: Balaji Valve Components IPO

Balaji Valve Components IPO: Salient Points

  • The global industrial valves market size was valued at USD 48.1 billion in 2020 and is projected to reach USD 85.7 billion by 2025. It is expected to grow at a Compound Annual Growth Rate (CAGR) of 12.3% during the forecast period.
  • IPO proceeds are going into expansion and working capital. 2.5 x expansion of forging plant. forging component capacity will get get enhanced from max 30 kg to 60 kg component.
  • It has 3 hammers , 2 heat treatments shops.
  • Company has a diversified product portfolio of industrial valves components catering to different industries in sizes ranging from ½ inch to 60 inches. They manufacture and supply various types of ball valve components, butterfly valve components and other valve components including forging products and have a significant customer base in the valve manufacturing industry developed over the years.
  • Key Parameters
Key Financial PerformanceFor the periodFor the year
30-June-2331-Mar-2331-Mar-2231-Mar-21
Revenue from operations1651.566227.423885.381614.52
EBITDA327.441095.89273.2839.98
EBITDA Margin19.8317.607.032.48
PAT184.84643.15153.47(3.22)
PAT Margin11.9110.333.95
Networth975.76789.14144.64(10.85)
RoNW(%)18.9581.50106.10
RoCE (%)7.2926.478.171.01
  • Presently, they are concentrated in the state of Maharashtra, Goa, Gujarat, Tamil Nadu and Karnataka. They aim to Enhance their presence in additional regions to reach out to a larger market.
  • Geographical Revenue Break up
Sr. No.ParticularRevenue (Amount in Lakhs)
30-June-2331-Mar-2331-Mar-2231-Mar-21
1Domestic Sales1106.453812.522,583.63992.24
2Export sales321.181837.80956.00534.15
3Other operating revenue223.94577.10345.7588.14
 Total1651.566227.423885.381614.52
  • Exports are spread across 12-13 countries including USA. Germany, UK, Italy, Saudi Arabia with 30% comping from exports.
  • Intends to go for 40-50% through renewable power in coming years.
  • They have good quality certification for their devices.
  • Balaji Valve Components IPO is coming at a PE ratio of 12.7x(fy23 earnings) and 11x (fy24 annualized earnings)
  • I intend to apply in Balaji Valve Components IPO subject to availability of funds. Decent growth in the past and management and Exports sales likely to go up as per management.
  • GMP as reported on social media has been Rs. 20.
  • Hem securities is the Lead Manager to the issue. The IPOs lead managed by them have given a good return to the investors. These include names like Shanti Spintex, SJ Logistics, Paragon Fine And Specialty Chemicals, E Factor Experiences Limited, Arabian Petroleum Limited, ,Saakshi Medtech and Panels Limited, Kahan Packaging Limited, Asarfi Hospital Limited, Kaka Industries, Green Chef, Vasa Denticity, Chaman Mettalics, Hemant Surgicals, Labelkraft, Concord Control Systems Limited, Earthstahl & Alloys Limited, Silicon Rental Solutions Limited, Krishna Defence and Allied Industries, Prevest Denpro Limited etc.
  • SME IPO are more risky than mainboard IPOs.
  • Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . I have in the past cleared some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2) Examination. This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors. I may have bias/vested interest in covered Stock/Mutual Funds/NCD etc. due to my own investment or leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Do check the data from company’s RHP and exchanges before making any decision. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.

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