Started in 2015, Gallard Steel Limited is an engineering company engaged in the manufacturing of ready-to-use components, assemblies, and subassemblies for Indian railways, defence, power generation and allied industries. The product portfolio includes critical components such as traction motor components and bogie assembly components for the railway sector, sub-assemblies for thermal and hydro turbines used in the power generation sector and components for industrial machinery, equipment and the defence sector. These components are manufactured using unmachined and machined castings made from metals including carbon steel, ductile iron, grey cast iron and medium and low alloy steels. The clientele primarily comprises companies operating in the heavy engineering, railways and defence sector. In the railway sector, company supplies components for the production of traction motors and bogie assemblies, including control arms for FIAT LHB coaches, stator frames for various motors used by railways for manufacturing of traction motors serving the railway and heavy engineering industries. In the defence sector, they manufacture components such as cradles and recoiling assembly cylinders for government defence production units. In the power generation sector, they manufacture guide vanes, bush housings and fork systems for heavy engineering companies, which are used in hydro and thermal power generation. In components for industrial machinery and equipment, they manufacture High Temperature Resistance Liner and other components. The manufacturing operations are carried out at the foundry located in Pithampur, Dhar, Madhya Pradesh, spread over land area of 12,195 square meters and is ISO 9001:2015 certified. As part of the strategic expansion, in February 2024, they acquired Sleeploop India Private Limited (SIPL), making it the wholly owned subsidiary. SIPL operates a manufacturing facility located at Pithampur, Dhar, Madhya Pradesh, which consists of two separate divisions — one dedicated to CNC machining and the other to rebounded foam manufacturing. Further, they have incorporated a foreign subsidiary company, namely, Gallard Steel Europe B.V., with the Netherlands Chamber of Commerce on October 21, 2025, having its office located at Kaneelhof 5,3544 AM, Utrecht, Netherlands, for the purpose of establishing our presence in Europe and facilitating exports of steel castings and machined components to the European market. The said foreign subsidiary is yet to commence its business operations. As per financial performance, Gallard Steel Limited has posted total income / net profits of Rs 21.64 /1.13 Cr (FY23), Rs 27.86 / Rs 3.19 Cr (FY24), Rs 53.52 Cr / 6.06 Cr (FY25) and Rs 32.13 Cr / 4.29 Cr (upto Q2 FY26). So as per previous financials data, company has shown good growth, but sudden rise in net-profit just before IPO raises doubts. Also trade receivable is around 27% of FY25 total revenue. Company has an average EPS of Rs 6.44 and average RoNW of 30.52% for last three fiscals. Issue is priced at a P/BV of 4.91 as per NAV of Rs 30.54/- 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 44.59, 23.49 and 16.60 respectively. As per RHP, comparison between listed peers is shown in above table. On BRLM's front, Seren Capital Private Limited is associated with this SME IPO, and has handled 3 SME IPOs in last three fiscal years. From last 3 IPOs, all opened above issue price on the day of listing. As of now, all are trading above issue price. ( As on 14.11.25 ) As per financials, Gallard Steel Limited has shown good growth, RoNW is 35.51% and P/E is 44.59, 23.49 and 16.60 respectively as per FY24, FY25 and annualised FY26 earnings. So issue looks fully priced, but sudden rise in net profit just before IPO raises doubts. Company is engaged in the manufacturing of ready-to-use components, assemblies, and subassemblies for Indian railways, defence, power generation and allied industries, which is highly competitive business segment. Performance of BRLM is average. 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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