🧠 At a Glance
Neetu Yoshi Ltd is a railway casting manufacturer from Uttarakhand, now raising ₹77 Cr via SME IPO to set up a shiny new plant. With FY24 profits hitting ₹12.58 Cr (vs ₹42 lakh in FY23), margins looking buff, and ROCE touching 44% — this IPO is the financial equivalent of a bullet train. But is this foundry’s IPO molten gold or just hot air?
1. 🎬 Introduction with Hook
“Lohia family, railways, 500 kg castings… and ₹77 Cr from the public. Welcome aboard.”
Neetu Yoshi Ltd sounds like a desi startup name, but this is no SaaS unicorn. It’s a foundry business making brake beams, axle boxes, and coach couplers for Indian Railways — and it’s sprinting to the BSE SME platform with a price band of ₹71–75.
The jump in profits is massive, the valuation not totally derailed, and the order book implied but never declared. Let’s break it down before FOMO pulls you under the wheels.
2. 🏗️ Business Model (WTF Do They Even Do?)
Neetu Yoshi Ltd makes ferrous railway parts.
🛠️ Product Line Includes:
- Brake Beams, End Castings, Wedges, Bogie frames
- Axle Box Housings, Couplers, Liners
- Support plates, Yoke pins, and other heavy-duty castings
🎯 Target Customer: Indian Railways (RDSO certified)
🏭 Manufacturing Unit: Uttarakhand (7,173 sq. mtr), RDSO-approved
🧱 Materials: Mild Steel, Spheroidal Graphite Iron, Cast Iron, Manganese Steel
🛤️ Order Types: Customized + Standard railway components
No frills. No FMCG sideline. Just rail castings and solid industrial B2G execution.
3. 📊 Financials Overview – Profit, Margins, ROE, Growth
| Metric | FY22 | FY23 | FY24 | 9MFY25 (Dec) |
|---|---|---|---|---|
| Revenue | ₹4.63 Cr | ₹16.33 Cr | ₹47.45 Cr | ₹51.47 Cr |
| PAT | ₹0.07 Cr | ₹0.42 Cr | ₹12.58 Cr | ₹11.99 Cr |
| EBITDA | ₹0.17 Cr | ₹1.21 Cr | ₹17.19 Cr | ₹16.85 Cr |
| Net Worth | ₹2.69 Cr | ₹5.57 Cr | ₹19.74 Cr | ₹40.14 Cr |
🤯 YoY PAT Growth: 2,894%
📈 Net Worth Growth (FY22–24): 15x in 2 years
This is not a typo. This is the Railway Glow-Up™.
4. 📉 Valuation – Is It Cheap, Meh, or Crack?
- 💵 Price Band: ₹71–75
- 🧮 Post Issue EPS: ₹4.12
- 📗 Post Issue P/E: ~18.2x
- 📘 Book Value (Post): ~₹7.3
- 🔢 Price/Book: ~10.3x
🎯 SME benchmark P/E: 10–16x
🎯 Neetu Yoshi’s actual growth + EBITDA: legit impressive
📛 P/B is high — but common in asset-light castings setups
📉 Fair Value Range: ₹56–₹68 (using 14x–16x P/E)
5. 🍿 What’s Cooking – News, Triggers, Drama
- 🚆 RDSO Certification: Huge moat in Indian Railways
- 🏭 New Plant: ₹50.78 Cr to build a second manufacturing unit
- 🧠 Sudden PAT spike: Jumped from ₹42 lakh to ₹12.5 Cr
- 📦 Productivity Exploded: From ₹4 Cr rev in FY22 → ₹51 Cr in 9MFY25
If this were Shark Tank: “Margins itni mast kahan se laaye bhai?”
6. 🧾 Balance Sheet – How Much Debt, How Many Dreams?
| Metric | FY24 |
|---|---|
| Total Borrowing | ₹17.39 Cr |
| Net Worth | ₹19.74 Cr |
| Debt/Equity | 0.88 |
➡️ Not outrageous — manageable debt, strong RoNW.
➡️ Funds from IPO will ease pressure + fund expansion
⚠️ But FY22–23 was a different story — the turnaround is recent.
7. 💸 Cash Flow – Sab Number Game Hai
📉 No detailed cash flow in public filing, but:
- FY24 PAT = ₹12.58 Cr
- EBITDA = ₹17.19 Cr
- Borrowings still at ₹17.4 Cr
- New plant to eat up ₹50.78 Cr
🔧 Expect FY26 to be capex heavy; free cash might be tight until operating leverage from new plant kicks in.
8. 🧮 Ratios – Sexy or Stressy?
| Ratio | Value | Comment |
|---|---|---|
| ROCE | 43.74% | 🔥 Firecracker efficiency |
| RoNW | 99.20% | 🥵 Too hot — sustainability risk |
| PAT Margin | 26.58% | Very high for B2G foundry |
| EBITDA Margin | 36.31% | Excellent |
| Debt/Equity | 0.88 | Tolerable |
| P/E (Post) | 18.2 | Just above fair zone |
| Price/Book | 10.3 | SME-normalised high |
⚠️ Overall: 🔥 Growth + 🔴 Caution on margins sustainability
9. 💰 P&L Breakdown – Show Me the Money
- FY22–23: Barely profitable
- FY24–25: Massive surge — PAT 30x’d
- FY25 9M = Already ₹11.99 Cr PAT
🥲 But no mention of railway contract sizes or renewal cycles
🔍 We’re investing based on last 15 months of magic
10. ⚔️ Peer Comparison – Who Else in the Game?
| Company | Revenue (₹ Cr) | PAT (₹ Cr) | P/E | ROCE |
|---|---|---|---|---|
| Neetu Yoshi | 47.5 | 12.58 | 18.2 | 43.7% |
| Texmaco Rail | 2,220 | 83 | 30+ | 9% |
| Ramkrishna Forgings | 3,000+ | 252 | 35 | 12% |
✅ NYL has way better margins
❌ But zero export, contract dependency on one customer (Railways)
11. 🧩 Miscellaneous – Shareholding, Promoters
- 👑 Promoters: Himanshu, Subodh, and Saundarya Lohia
- 📈 Pre-Issue Holding: 95.23%
- 🪙 Anchor Investors: ₹21.9 Cr raised — positive signal
- 🧑🏭 Employees: 88
✅ Promoter skin in the game
✅ Anchor confidence
🚫 No mention of customer names/contracts — always a blind spot
12. 🧠 EduInvesting Verdict™
🚂 “From sleeper class to Rajdhani margins — this IPO deserves a double-check.”
Neetu Yoshi Ltd is one of the few SME IPOs where fundamentals actually align with price. A clear business model, niche focus (railway castings), and proven 15-month financial sprint.
But…
🔎 FY24 profit looks turbocharged
🔎 No visibility on future orders
🔎 All eggs = Indian Railways basket
👑 Verdict: Not a scam. Not a steal either.
🏃♂️ Track this one like a cautious IRCTC investor with PTSD.
✍️ Written by Prashant | 📅 June 30, 2025
Tags: Neetu Yoshi IPO, Railway SME IPO, Ferrous Casting IPO, Indian Railways supplier IPO, SME Bookbuilding June 2025, EduInvesting SME Analysis, RDSO Certified Vendor IPO, SME IPO review, Foundry IPO India
