SEDEMAC Mechatronics Limited is a supplier of control-intensive, critical-to-the-application electronic control units ('ECUs') to leading original equipment manufacturers ('OEMs') in the mobility and industrial markets in India, the United States, and Europe. The majority of the revenue from operations is attributed to products which incorporate novel control technologies that are conceived and developed entirely in-house, enabling to offer fresh proprietary solutions that provide distinct value to end-users or the OEM customers. Several of these unique technologies (as described in detail below in this section) have achieved widespread adoption across the sectors the serve. SEDEMAC is the first company in India to develop, design and manufacture sensor less commutation ('SLC') based integrated starter generators ('ISG') ECUs for two-wheeler / 3-wheelers ('2/3Ws') internal combustion engine ('ICE') powered vehicles. They have shipped sensorless ISG ECUs, and ECUs integrating the functionality of ISG with electronic fuel injection ('ISG+EFI') ECUs for more than 9.2 million small engine 2/3 Ws between Fiscal 2018 and nine months ended December 31, 2025. They held approximately 35% market share of domestic ISG ECU market (for 2W and 3W combined) in terms of volume and are amongst the top 4 players for the nine months ended December 31, 2025. Company is also the leaders in India for genset controllers ('GC') with an estimated market share of 75%-77% during the nine months ended December 31, 2025 and are amongst the key global players with a market share of 14% globally with their offerings of genset controllers and EFI ECUs for this market for Fiscal 2025. Further more, they introduced electronic governing ('eGov') as an integrated feature into genset controllers in 2014 and according to the CRISILReport, they pioneered the introduction of integrated eGov technology in genset controllers in India. Company currently sells millions of control-intensive, critical-to-application controllers for complex systems globally across diverse markets every year. The key sectors include (i) Industrial: Generators – for which they supplied 201,007 control-intensive controllers during Fiscal 2025; (ii) Mobility: ICE 2/3W vehicles, - for which they supplied 2,228,133 control-intensive controllers during Fiscal 2025; and (iii) Mobility: electric two/three-wheeler vehicles and bicycles - for which they supplied 9,364 control-intensive controllers during Fiscal 2025. Apart from these, they are actively engaged in a development programme in the commercial vehicles sector and have had successful proof-of-concept demonstrations of the SLC based motor control in the power tools market and are also engaged in the introduction of ECUs for commercial vehicles. As on the date of this RHP, they operate two (2) technical centres and two (2) operational manufacturing facilities, all located in Pune, Maharashtra, India. To support the continued growth, they have consistently increased the total capacity of MF1, their facility for control-intensive products. Installed capacity has grown from 2.47 million ISG ECUs as of 31/03/23 to 3.04 million ISG ECUs as of 31/03/24 and 3.99 million ISG ECUs as of 31/03/25. During this period of capacity expansion, their production volumes and utilisation rates at MF1 was 75.95% in Fiscal 2023, 74.81% in Fiscal 2024 and 76.42% in Fiscal 2025. For the 9M FY26, the utilisation rate was 93.39% reflecting strong operational performance for that period. As per financial performance, SEDEMAC Mechatronics Limited has posted total income / net profits of Rs 429.86 Cr / Rs 8.57 Cr (FY23), Rs 535.89 Cr / Rs 5.87 Cr (FY24), Rs 662.53 Cr / 47.04 Cr (FY25) and Rs 775.30 Cr / 71.49 Cr (upto Q3 FY26). So as per previous financials data, company has shown good growth, also debt reduced. Company has an average EPS of Rs 6.21 and average RoNW of 10.56% for last three fiscals. Issue is priced at a P/BV of 14.38 as per NAV of Rs 94.02/- as on 31.12.25. 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 1015.76, 126.91 and 62.63 respectively. As per RHP, comparison between listed peers are shown in the above market. On BRLM's front, ICICI Securities Limited, Avendus Capital Private Limited, Axis Capital Limited are associated with this IPO, and has handled 137 IPOs in last three fiscal years. ( As on 27.02.26 ) As per financials, SEDEMAC Mechatronics Limited has shown good growth, RoNW is 15.48% and P/E is 1015.76, 126.91 and 62.63 respectively as per FY24, FY25 and annualised FY26 earnings. So issue looks fully priced. Company is a supplier of control-intensive, critical-to-the-application electronic control units ('ECUs') to leading original equipment manufacturers ('OEMs') in the mobility and industrial markets. So, we give NEUTRAL rating for this IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.
✍️ Post a Comment