Poojaa Precision Engg. Limited is an integrated precision engineering enterprise specializing in the manufacturing of aluminium die casting and machining components. The company's core value proposition lies in providing end-to-end engineered solutions, spanning design, engineering, melting, casting, cleaning, and value-added processes including precision machining and assembly. It operates with a diverse portfolio of over 600 SKUs, utilizing manufacturing techniques such as gravity die casting (GDC), low-pressure die casting (LPDC), and high-pressure die casting (HPDC) to deliver customized, precision-engineered products. The company operates on a B2B business model, catering to a highly diversified client base that includes original equipment manufacturers (OEMs) and tier-1 suppliers. Its target segments span the traditional automobile industry, the rapidly growing electric vehicle (EV) mobility sector, and various non-automotive sectors such as agriculture, defence, energy, healthcare, and engineering goods. Geographically, it maintains a strong domestic footprint with repeated business from major customers, while also successfully exporting its components to sophisticated international markets including Germany, the United States, Italy, and Switzerland. Manufacturing operations are currently consolidated in Pune, Maharashtra, across two strategically located facilities. Unit 1 is situated at Chakan-Talegaon Road in Kharabwadi, and Unit 2 is located nearby in the Chakan Industrial Area. Together, these facilities house significant infrastructure. For the fiscal year ending March 31, 2026, the company maintained an installed melting capacity of 13,800 MTPA with a healthy capacity utilization rate of 80% (producing 10,982 MT). Concurrently, its installed casting and finishing capacity stood at 6,000 MTPA, operating at an 84% utilization rate (producing 5,049 MT). Operationally, the company places a strong emphasis on continuous innovation and rigorous quality control. Its in-house design and engineering team, comprising 17 skilled employees, leverages advanced software like Adstefan casting simulation and Solidcam to reverse-engineer components and develop prototypes based on customer specifications. To ensure defect-free output, the facilities are equipped with sophisticated testing systems, including spectro analysis instruments, coordinate measuring machines (CMM), and 3D scanning. These robust processes are validated by the company's prestigious ISO 14001:2015, ISO 45001:2018, ISO 9001:2015, and IATF 16949:2016 certifications. As per financial performance, Poojaa Precision Engg. Limited has posted total income / net profits of Rs 174.59 Cr / Rs 16.10 Cr (FY24), Rs 222.80 Cr / Rs 23.93 Cr (FY25) and Rs 295.20 Cr / Rs 30.90 Cr (FY26). So as per previous financials data, the company has shown stellar top-line and bottom-line growth driven by increased capacity utilization and high-margin EV segment expansions, alongside a marginal increase in its debt-to-equity ratio from 0.22x in FY24 to 0.31x in FY26 due to aggressive capacity additions. Company has an average EPS of Rs 18.74 and average RoNW of 25.00% for the last three fiscals. Based on the pre-issue book value, the issue is priced at a Pre-Issue P/BV of 3.31x as per NAV of Rs 90.99 as on 31.03.26. Factoring in the fresh issue proceeds, the Post-Issue P/BV stands at 2.05x. If we attribute the latest earnings of FY24, FY25, and FY26 to the expanded equity base post-issue, then the asking price is at a Post-Issue P/E of around 37.30x, 25.08x, and 19.43x respectively. As per RHP, a comparison between listed peers shows the company is priced at a significant discount compared to much larger peers like Endurance Technologies Ltd (39.52x), RICO Auto Industries Limited (36.29x), and Alicon Castalloy Ltd (31.49x), making its valuation highly competitive in light of its superior return metrics. On BRLM's front, Hem Securities Limited are associated with this IPO, and Hem Securities Limited has handled 10 IPOs in the last three fiscal years. (as on 23.07.26) As per financials, Poojaa Precision Engg. Limited has shown a phenomenal 38.53% PAT CAGR over the last three years, RoNW is 23.21% and the Post-Issue P/E is 37.30x, 25.08x, and 19.43x respectively as per FY24, FY25, and FY26 earnings. So the issue looks attractively priced. The company is an integrated precision engineering enterprise offering products starting from safety-critical brackets to transmission housings. So, we give a SUBSCRIBE rating for this IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.
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