Thaai Casting IPO (NSE SME) Overview

Thaai Casting Limited is an automotive ancillary company specializing in High Pressure Die Casting, as well as the precision Machining of both Ferrous and Non-Ferrous materials and Induction heating and quenching. Thaai Casting IPO is a book built issue of 61.3 lakh shares. The issue is entirely a fresh issue of 61.3 lakh shares.

IPO opensFeb 15, 2024
IPO ClosesFeb 20, 2024
IPO Size (Rs.)₹47.20 Cr
IPO Size (shares)
6,129,600 shares
BreakupFresh issue only
Face Value:₹ 10
IPO Price in Rs :₹73 to ₹77 per share
Minimum Lot1600 Shares
Listing AtNSE SME
QIB ~50 %
NII Quota~15%
Retail Quota~35%
 Lead ManagerGYR Capital Advisors
RegistrarPurva Sharegistry India
Market makerGiriraj Stock Broking and Commodity Mandi.

About Thaai Casting:

  • Thaai Casting is a distinguished automotive ancillary company with IATF 16949:2016 certification, specializing in High- Pressure Die Casting, as well as the precision Machining of both Ferrous and Non-Ferrous materials and Induction heating and quenching.
  • Founded by Mr. Sriramulu Anandan, a seasoned professional with extensive expertise in Pressure Die Casting and Machining Processes.
  • Their business model follows B2B approach, catering to leading entities in the automotive components sector.
  • Their product portfolio encompasses a diverse range of Automobile components, including Engine Mounting Support Brackets, Transmission Mounts, Fork Shift and Housing, Armature – Steering Wheel, Electrical Connectors, YFG Base Frame (Right-hand drive side/Left-hand drive side), Housing, Top Cover, and more.

Financials: Thaai Casting

Particulars / Rs. LacsOct 31, 23Jul 31,23Fy23Fy22Fy21
Revenue from operations2,888.931,958.524,896.063,833.802,042.87
Profit after Tax557.12303.81503.71115.440.33
Share Capital1,700.001,796.161,617.31894.84473.46
Net Worth2,320.781,796.161,617.31894.84473.46
Earnings per Share3.281.792.960.680.24
Net Asset Value13.6510.579.515.262.79
Total borrowings4,410.073,419.962,985.102,351.151,313.51
Post issue Share Capital2,313    
FV10    
IPO price77    
EPS Fy232.2    
PE Fy2335.4    
EPS Fy24 (annualized)6.4    
PE Fy24  (annualized)12.1    
Market cap in Lacs17,810.1    
Market Cap/sales3.6    

Anchors: Thaai Casting IPO

Thaai Casting IPO: Salient Points

  • The die casting segment accounted for the largest volume share of around 53.0% owing to the rising demand for aluminum casting products in the automotive sector. Die casting is used to manufacture various auto parts such as engines, cylinders, gears, and flywheels, which are used in high-end vehicles to mass-produce vehicles. This is owing to factors such as the low cost of die casting and strict CO2 emission laws being laid down around the world.
  • The Indian die casting industry is expected to grow at a CAGR of 15-20% in the next 2 years, driven by factors such as increasing demand from automotive, electronics, and consumer goods sectors. The industry is also expected to benefit from the government’s focus on “Make in India” and “Atmanirbhar Bharat” initiatives.
  • In recognition of their commitment to environmental sustainability, they received the MSIL-GREEN Certification from Maruti Suzuki India Limited in 2021.
  • In 2022, the company was honoured with prestigious awards from industry leaders such as Hanon and RSB, recognizing excellence in terms of Best Quality and being a standout Vendor.
  • Company has a culture of continuous improvement through the implementation of the Kaizen philosophy within its business verticals of aluminum die casting and Induction Heating and Quenching (IHQ).
  • Company currently set up new machines as par the upgraded technology needs of the industries which give us advantages to produce our manufacturing products at a low cost-effective price which led to helping to increase its profit margin.
  • Company received award from Tokai Rubber Auto Parts for Best Quality, Cost and Delivery
  • Company received award from Hyundai Motors for fulfilling the Quality Assurance Compliance
  • Approved by Maruti & Toyota.
  • Segment wise revenue details
  • Clients

  • Product wise Revenues
  • Key Performance Indicators of Company
  • Continuously upgrading systems. going for social audit as well.
  • In Auto segment , they have now entered into medium segment, Tata pickup vehicles, M&M
  • They have Inhouse capabilities, CNC & Other machines’ and instruments.
  • Working capital requirement cycle is 80-90 days.
  • Payment collection is in 40-45 days.
  • They expect a 60% jump in revenues due to ongoing capex in current years, 30-35% in Fy25 and steady growth there after.
  • Entering new verticals in die casting. Also supplier to escalator & wind energy ( hollow shaft for gear shaft) with a German Company..
  • No exports at presents but are getting order from Sumitomo group and exports will start on a small scale.
  • Peers
Company/₹ crCMP (₹)Revenue(cr)Net Profit(₹ cr)NPM%PEMcap (cr)Macp/salesRONW%
Thaai Casting7748.965.0410.3%35.4(12)178.13.640.10%
Endurance Technologies17848,8044805.5%41.425,12.812.28%
Electro Steel Casting1767012.533164.5%17.47,2761.07.84%
  • Looks OK when compared with larger and well established peers.
  • Most of the net proceeds from IPO going for Capital expenditure and will enhance its manufacturing capacity and competitiveness.
  • Thaai Casting IPO is coming at a PE ratio of 34x(fy23 earnings) and 18.6x (fy24 annualized earnings)
  • I intend to apply in Thaai Casting IPO subject to availability of funds. I expect the company to post good growth going forward and it has significant presence in automotive sector and non automotive sector is now starting to grow.
  • GMP as reported on social media has been Rs. 75.
  • GYR Capital Advisors Pvt. Ltd is the Lead Manager to the issue. with an outstanding record. Past issues handled by them include Maxposure Limited, Kay Cee Energy & Infra Limited, Trident Techlabs Limited, Maitreya Medicare Limited, Basilic Fly Studio Limited, Srivari Spices and Foods Limited, Essen Speciality Films Limited, MCON Rasayan India Limited, Agarwal Float Glass India Limited, Anlon Technology Solutions Limited, Uma Converter Limited, Sabar Flex India Limited, Mafia Trends Limited, Pritika Engineering Components etc.
  • SME IPO are much more risky and volatile 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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