Omnitech Engineering Limited is one of the key manufacturers of high precision engineered components and assemblies supplying to global customers across industries such as energy, motion control & automation, industrial equipment systems, metal forming and other diversified industrial applications. With 19 years of experience, they manufacture highly engineered precision machined components and assemblies that are majorly utilized towards safety critical applications. They manufacture a wide range of components ranging from weight of 0.003 kg to 503.33 kg, diameter of 1.27 centimetre to 1 meters and length of 0.2 centimetre to 10 meters which helps cater to the diverse requirements of the marquee customer base. During 6 months ended September 30, 2025, Fiscals2025, 2024 and 2023, they supplied customised high precision engineered components and assemblies to over 256 customers across 24 countries including United States of America, India, United Arab Emirates, Germany, Bulgaria, Sweden, United Kingdom, France, Australia and Canada. The products find applications in industries such as (i) Energy which includes supplies with end application primarily in oil & gas, wind energy and power sector; (ii) Motion Control and Automation which primarily includes supplies with electro-mechanical systems to end applications primarily in drives and motors, flow control, motion control, sensors, automation and hydraulics; (iii) Industrial Equipment Systems which includes supplies with end application primarily in aerospace ground support equipment, construction equipment, machineries for diverse applications, and components for winches and hoists; and (iv) Others which includes supplies with end application primarily in metal forming and other diversified industrial applications. Company operates out of the 3 manufacturing facilities in Metoda, Chhapara and Padavala, Rajkot, Gujarat ('Manufacturing Facilities'), which are equipped with capabilities to design, develop, prototype, manufacture, assemble and test their products. Their Manufacturing Facilities have obtained ISO 9001:2015, ISO 14001:2015 and ISO 45001:2018. Further they have also obtained ISO AS9100:2016 (for aviation, space and defence) and IATF 16949:2016 certificate for their Existing Facility 1 i.e., facility located at Metoda, Rajkot, Gujarat and, ISO AS9100:2016 (for aviation, space and defence) and API Spec Q1 in accordance with API 20J (for oil and gas), API 5CT and API 7-1 (right to use API monogram), for their Existing Facility 2 i.e., facility located at Chhapara, Rajkot, Gujarat. They have acquired 3 land parcels (i.e. Proposed Facility 1, Proposed Facility 2, and Plot No. 1 and 2, New R. S. No. 90 (Old S. No. 46 Paiki 2), Village Chhapara, Lodhika, Rajkot - 360021, Gujarat, India) with a potential built-up area of 44,450.99 square meters in Chhapara, Rajkot, Gujarat with an intent to partially de-risk their future growth. In line with the global delivery model, they also operate a warehouse in Houston, USA. As per financial performance, Omnitech Engineering Limited has posted total income / net profits of Rs 183.71 Cr / Rs 32.29 Cr (FY23), Rs 181.95 Cr / Rs 18.90 Cr (FY24), Rs 349.70 Cr / 43.86 Cr (FY25) and Rs 236.69 Cr / 27.77 Cr (upto Q2 FY26). So as per previous financials data, company has shown good growth, but inventory level is around 51% and trade receivables are around 36% of FY25 total sales. As on September 30, 2025, they had an Order Book of Rs 17,647.84 million. Company has an average EPS of Rs 3.30 and average RoNW of 27.71% for last three fiscals. Issue is priced at a P/BV of 10.29 as per NAV of Rs 22.07/- 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 148.46, 64.00 and 50.53 respectively. As per RHP, comparison between listed peers are shown in the above market. On BRLM's front, Equirus Capital Private Limited, ICICI Securities Limited are associated with this IPO, and has handled 89 IPOs in last three fiscal years. ( As on 17.02.26 ) As per financials, Omnitech Engineering Limited has shown good growth, RoNW is 21.46% and P/E is 148.46, 64.00 and 50.53 respectively as per FY24, FY25 and annualised FY26 earnings. So issue looks aggressively priced, also higher inventory level and higher trade receivables are red flags. As on September 30, 2025, they had an Order Book of Rs 17,647.84 million. Company is in the business of manufacturing high precision engineered components and assemblies. 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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