Kalyani Cast Tech IPO (BSE SME) Overview

Kalyani Cast Tech IPO envisages to raise ₹30.11 Crore. The issue is a fresh issue of 2,166,000 shares. Kalyani Cast Tech manufactures a wide product range of castings and offers specialized cargo containers.

IPO opensNov 8, 2023
IPO ClosesNov 10, 2023
IPO Size (Rs.)₹30.11 Cr
IPO Size (shares)2,166,000 shares
BreakupFresh issue only
Face Value:₹ 10
IPO Price in Rs :₹137 to ₹139
Minimum Lot1000 Shares
Listing AtBSE SME
QIB (includes anchor, Market Maker)~48 %
NII Quota~12%
Retail Quota~30%
 Lead ManagerGretex Corporate Services Limited
RegistrarBigshare Services
Market makerGretex Share Broking

About Kalyani Cast Tech Limited;

  • Company was incorporated in the year 2012 and started with the business of casting for which it had commissioned a casting unit at Rewari in Haryana.
  • The company has a class A foundry and manufactures products such as MG Coupler Components, CI Brake Blocks, Adapter for WDG4 Loco, Bearing housing for electrical loco, Corner casting for Containers motor hub traction motors etc.
  • They cater to a diverse client base such as Indian railways, companies engaged in Mining Industry, Cement Industry, chemicals and fertilizer and power plants.
  • In the year 2018 it started an addition line of business of manufacturing Containers. These containers were used by the railway transporters to transport goods via rail network in India..
  • As a cargo container manufacturing Company, its manufacturea a wide product range of castings, including finished components and are specialists in various types of cargo containers such as ISO containers 20’, 25’, 40’, 42’ and other special containers including dwarf containers, cuboid containers, special containers for parcel cargo and containers for two & three wheelers.
  • Promoters of company are Mr. Naresh Kumar, Mr. Javed Aslam, Mr. Nathmal Bangani, Ms. Kamala Kumari Jain and Ms. Muskan Bangani.

Financials: Kalyani Cast Tech Ltd

Particulars/Rs LacsJune 30, 2023March 31, 2023March 31, 2022March 31, 2021
Total Income2,467.856,336.464,947.121,135.26
Profit after Tax293.64803.79117.3335.36
Share Capital501.45501.45501.45501.45
Reserves and surplus1,216.20922.56118.771.44
Net Worth1,717.651,424.01620.22502.89
Total Borrowings581.92342.05269.87498.54
Basic & Diluted EPS (₹)5.8616.032.340.76
Return on Net worth (%)17.156.4518.927.03
Net Asset Value ₹)34.2528.412.3210.74
Post issue Share Capital718   
FV10.0   
IPO price139.0   
EPS Fy2311.2   
PE Fy2312.4   
EPS Fy24 (annulaized)16.4   
PE Fy24  (annulaized)8.5   
Market cap in Lacs9,980.2   
Market Cap/sales1.6 

Anchor: Kalyani Cast Tech IPO

Kalyani Cast Tech IPO: Salient Points

  • Company has graduated from a casting company to manufacturer of specialized containers. It manufactures various types of cargo containers such as ISO containers in different sizes and other special containers including dwarf containers, cuboid containers, special containers for parcel cargo and containers for two & three wheelers.
  • Company has approval of RDSO as class A Foundry. This makes it eligible for Indian Railway Supplies.
  • Mr. Naresh Kumar, Promoter and Managing Director of the Company. is an Indian Institute of Technology, Madras passed out engineer. He has worked in Indian Railways at lower and middle level of management and earlier designed and developed special containers for logistics industry including Indian Railways as well as architecture for various innovative idea in multi modal viz. running of double stack container trains and double stack dwarf container trains on Indian Railway network.
  • It has also started export of containers and made export sales to Russia during the Financial Year 2022-23.
  • Kalyani Cast Tech revenue has increased from 11 Cr in Fy21 to 63 Cr in FY23. Company has crossed 63 crore mark in current financial year with 4-5 months still to go.
  • The EBITDA margins has also increased from 8.6% in FY21 to 18% in Fy23.
  • .Managements is hopeful of Rs. 100 crore revenue in the current year.
  • In current year (till date) company has already made number of containers (around 2000) which it made in last financial year.
  • As per the RHP, company has shown Titagarh Rail Systems Limited and Texmaco Rail & Engineering Limited as their listed peer. They are much larger companies and are trading at much higher Price to earning multiples.
  • Kalyani Cast Tech IPO is coming at a PE ratio of 12.4x(fy23 earnings) and 8.5x (fy24 annualized earnings)
  • I intend to apply in Kalyani Cast Tech IPO. Company is now more of a container manufacturing Company. Management has guided for good growth in current year and aril sector is experiencing significant growth opportunities. Valuations appear reasonable.
  • GMP as reported on social media has been around Rs. 85.
  • Gretex Corporate Services Limited is the Lead Manager. Past issues handled by them include Transteel Seating Technologies Limited, Shelter Pharma Limited, Comrade Appliances Limited, Innokaiz India Limited Retina Paints Limited, Sudarshan Pharma Industries, ResGen Limited, Reetech International Cargo and Courier Ltd, Steelman Telecom Limited, Shantidoot Infra Services.
  • SME IPO are more risky than mainboard IPOs.
  • Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational/ exploratory 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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