Defrail Technologies Limited is engaged in the business of manufacturing rubber parts & components including Rubber Hose and Assemblies, Rubber Profiles and Beadings and Rubber Moulding parts. Their Products have diverse application across different industries including Automotive, Railways and Defence. They assist clients in selecting the right type of product for their applications while also providing design and customization options according to the intended use. The Company operates with two (2) manufacturing plants located at Neemka, Faridabad, Haryana and Sector 24, Faridabad, Haryana spanning a total area of 2420 sq. yards and 4833.33 sq. yards respectively. It is Capable of producing Variety of rubber products available in different size and specification as per the requirement of customer including but not limited to Diesel and petroleum Hose Pipe, LPG Hose pipe, Nylon Tubes, Rubber Gaskets, Rubber Grommets, Air intake Hose, Aluminium Window Rubber beading, Black EPDM Rubber Profiles, Rubber Sponges Profiles and many more. Current capacity urilization of Plant 1 is around 32.91%, 29.10% and 40% for the FY 25, FY24 and FY23 respectivey with total capacity 23,70,000 kg/per month as on 31.03.25 and plant 2 is around 42.42%, 47.93% and 60% for the FY 25, FY24 and FY23 respectivey with total capacity 9,90,000 kg/per month as on 31.03.25. The business primarily operates on a B2B (Business-to-Business) model, supplying rubber products to various industries. A significant portion of the revenue is generated from bulk orders placed by clients that are in Automobile Industry. Additionally, they cater to B2G (Business-to-Government) segment as well, where they offer the products directly to Government authority like Railways and Defence. While the primary focus remains on B2B sales, the B2G segment contributes a smaller portion of the overall revenue. As per financial performance, Defrail Technologies Limited has posted total income / net profits of Rs 33.62 / 0.87 Cr (FY23), Rs 30.01 / Rs 1.43 Cr (FY24), Rs 62.22 Cr / 3.41 Cr (FY25) and Rs 39.08 Cr / 1.50 Cr (upto Q2FY26). So as per previous financials data, company has shown good growth, but sudden rise in sales and profit just before IPO raises some doubts. Company has an average EPS of Rs 11.44 and average RoNW of 71.75% for last three fiscals. Issue is priced at a P/BV of 3.60 as per NAV of Rs 20.58/- as on 30.09.25. If we attribute latest earnings of FY24, FY25 and annualised FY26 on equity post issue, then asking price is at a P/E of around 36.29, 15.21 and 17.25 respectively. As per RHP, comparison between listed peers is shown in above table. On BRLM's front, NEXGEN Financial Solutions Private Limited is associated with this SME IPO, and has not handled any SME / Main board IPOs in last three fiscal years. (as on 06.01.26 ) As per financials, Defrail Technologies Limited has shown good growth, RoNW is 73.72% and P/E is 36.29, 15.21 and 17.25 respectively as per FY24, FY25 and annualised FY26 earnings. So issue looks fully priced, but sudden rise in sales and net profit is one of the concern. Company is engaged in the business of manufacturing rubber parts & components, which is competitive business segment. Performance of BRLM is poor post listing. So, we give NEUTRAL rating for this IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.
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