Narmadesh Brass Industries Limited

Narmadesh Brass Industries Limited is engaged in manufacturing diverse range of brass products catering to both domestic and international market. Presently, the company operates through one manufacturing facility located in plot no 5, 8 & 9 at Jamnagar, Gujarat. The manufacturing premises spans 6,293.03 sq. mtr and also ISO 9001:2015 certified for Quality Management. The current manufacturing setup has an installed capacity of Brass Billets of 4,320 mt per annum, Brass Rods of 4,320 mt per annum and Brass Components of 1,600 mt per annum. They also offer casting and forging services related to brass components at the manufacturing facility. The product offering includes brass rods, brass billets, agricultural sprayer parts, garden fittings, ball valves, non-return valves (NRVs), turning components and plumbing fittings, sanitary fittings, brass compression fittings etc. The Holding Company, Sprayking Limited is also engaged in similar line of business i.e. manufacturing brass components/ products. As per financial performance, Narmadesh Brass Industries Limited has posted total income / net profits of Rs 60.09 / 0.89 Cr (FY23), Rs 79.06 / Rs 7.09 Cr (FY24), Rs 88.05 Cr / 5.72 Cr (FY25) and Rs 34.21 Cr / 4.01 Cr (upto Q2 FY26). So as per previous financials data, company has shown steady results, but sudden rise in net profit raises some concerns. Company has an average EPS of Rs 24.64 and average RoNW of 68.10% for last three fiscals. Issue is priced at a P/BV of 2.58 as per NAV of Rs 199.29/- as on Post Issue. 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 22.50, 27.90 and 19.90 respectively. As per RHP, comparison between listed peers is shown in above table. On BRLM's front, Share India Capital Services Private Limited is associated with this IPOs, and has handled 15 IPOs in last three fiscal years. From last 10 IPOs, all opened above issue price or at par, on the day of listing. As of now, from last 10 IPOs, five are trading below issue price and remaining all are trading above issue price or at par. (as on 07.01.26 ) As per financials, Narmadesh Brass Industries Limited has shown good results, RoNW is 49.99% and P/E is 22.50, 27.90 and 19.90 respectively as per FY24, FY25 and annualised FY26 earnings. So issue looks aggressively priced and the sudden rise in net-profit raises doubts. Company is engaged in manufacturing diverse range of brass products, which is very competitive business segment. Performance of BRLM is average post listing. So, we give NEUTRAL rating for this IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.

• 1 Mr. Hitesh Dudhagara
• 2 Mrs. Ronak Dudhagara
• 3 Mr. Krish Dudhagara
• 4 M/s. Sprayking Limited