Mandeep Auto Industries Limited is engaged in the business of manufacturing and supplying sheet metal components, auto parts, and all types of sprocket gears and machined components, that finds its application in a diverse industry, such as tractor, automobiles, material handling & earth moving equipment, railways, defense, machine tools, DIY industry etc. They manufacture these products from the Manufacturing Unit. They believe, the manufacturing facilities have advanced technologies to develop and manufacture the products that adhere to the stringent quality control requirements of the customer. They also manufacture customized components as per customer specific requirements and use, with high degree of precision both in quality and time with personalized services to the strong customer base in India. The focus is to consistently expand the product portfolio by developing new designs. They believe that they share a longstanding relationship with the customer and they receive majority of the business from repetitive clients. They constantly engage with the customers through marketing via personal interactions and updating them on the capabilities and strengths. The sales team works closely with the customers to obtain their insights and feedback about the upcoming trends in the industry which enables them to develop and improve the products to fulfil the requirements of the market. As per financial performance, Mandeep Auto Industries Limited has posted total income / net profits of Rs 15.63 Cr / Rs 0.50 Cr (FY21), Rs 21.90 Cr / Rs 0.65 Cr (FY22), Rs 29.79 Cr / Rs 1.05 Cr (FY23) and Rs 21.71 Cr / Rs 2.37 Cr (upto Q3 FY24). So as per previous financials data, company has shown good growth, but sudden increase in net profit, just before IPO generates doubts. Company has posted an average EPS of NA and average RoNW of 19.74% for last three fiscals. Issue is priced at a P/BV of 5.79 as per NAV of 11.58 as on Post issue. If we attribute latest earnings of FY22, FY23 and annualised FY24 on fully diluted equity post issue, then asking price is at a P/E of around 107.05, 66.03 and 21.97 respectively, which looks aggressively priced. As per RHP, comparison between listed peers is shown in above table. This is first IPO from Jawa Capital Services Private Limited BRLM. As per financials, Mandeep Auto Industries Limited has shown good growth, RoNW is 23.13% and P/E is respectively 107.05, 66.03 and 21.97 as per FY22, FY23 and annualised FY24 earnings. So, issue looks aggressively priced and sudden rise in net-profit is very surprising. Company is in business of manufacturing and supplying sheet metal components, auto parts, and all types of sprocket gears and machined components, which is highly competitive and fragmented segment. This is first IPO from BRLM. 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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