Swastika Castal Limited supplies the casting as original equipment (ready to use component) to reputed Companies in India and also exports to parts of Europe, and U.S.A. company has established itself as a leader in aluminum casting and manufacturing through its diverse production capabilities. The company employs several specialized casting processes to meet varying industrial requirements. Company's sand-casting operations handle High weight and Integrated casting production, capable of manufacturing components up to 250 kgs. This traditional method excels in creating complex shapes and intricate designs using specially prepared casting sand moulds, making it particularly effective for one-off productions. The company's gravity casting (permanent mold casting) facility produces components up to 80 kgs, offering superior surface finish and dimensional accuracy. This process uses reusable metal molds and relies on gravity for cavity filling, ensuring consistent quality in precision components. The Company specialize in centrifugal casting process handles can handle weights upto 70 Kgs. This specialized technique employs rotating molds to achieve uniform metal distribution, resulting in exceptional density distribution and mechanical strength. The company caters to MNCs across industries such as automotive, textiles, electrical and electronics, and heavy equipment manufacturing. These customers rely on Swastika Castal Ltd. for precision-engineered components that meet exacting specifications. The company’s ability to deliver customized solutions through advanced casting techniques like sand casting, gravity die casting, and centrifugal casting has further strengthened its position as a preferred partner for global brands. As per financial performance, Swastika Castal Limited has posted total income / net profits of Rs 24.41 Cr / Rs 0.58 Cr (FY23), Rs 23.35 Cr / Rs 0.65 Cr (FY24) and Rs 30.31 Cr / Rs 2.63 Cr (FY25). So as per previous financials data, company has shown sudden rise in net profit, which raises doubts. Company has posted an average EPS of Rs 2.72 and average RoNW of 13.37% for last three fiscals. Issue is priced at a P/BV of 2.15 as per NAV of Rs 30.30/- as on post issue. If we attribute latest earnings of FY23, FY24 and FY25 on fully diluted equity post issue, then asking price is at a P/E of around 90.76, 81.67 and 20.14 respectively, which looks fully priced. As per RHP, comparision between listed peers are shown in above table. On BRLM's front, Horizon Management Private Limited is associated with this SME IPO and handled 17 SME IPOs in last 3 years. From last 10 IPOs, 7 opened above issue price or at par and remaining below issue price on the day of listing. As of now from last 10 IPOs, 2 are trading above issue price and remaining are trading below issue price as on today. ( As on 16.07.25 ) As per financials, Swastika Castal Limited has shown average result, RoNW is 24.7% and P/E is respectively 90.76, 81.67 and 20.14 as per FY23, FY24 and FY25 earnings. So, issue looks fully priced as per recent earnings, but sudden rise in net-rpofit raises doubts. Company is engaged in the business of metal casting, which is highly competitive business segment. Performance of BRLM is very poor post listing. 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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