1. 🧊 At a Glance
Cryogenic OGS makes filtration and measurement systems for oil, gas, and chemical industries. With ₹33.79 Cr revenue and ₹6.12 Cr PAT in FY25, they’re going public on BSE SME to raise ₹17.77 Cr via a fresh issue. At the upper price band of ₹47, it seeks a market cap of ₹67 Cr.
2. 🎬 Introduction with Hook
They say “there’s money in oil”, but Cryogenic OGS took it literally and built a business around cleaning it, measuring it, and dosing it with additives.
And now? They’re ready to skim ₹17.77 Cr from the public to fund their next chapter.
But don’t expect fireworks. This isn’t a fancy consumer brand.
No glam, no gold, no Gujarat-style IPO rallies (yet). Just good ol’ industrial B2B engineering from Vadodara.
So should investors ride the gas skid, or is this IPO just full of hot air? Let’s decode.
3. 🏭 Business Model – WTF Do They Even Do?
Cryogenic OGS is a manufacturing and engineering solutions company. They design and build high-precision mechanical systems that help:
- Filter oil and gas (Basket Strainers)
- Remove air from pipelines (Air Eliminators)
- Calibrate flow meters (Prover Tanks)
- Auto-dose chemicals (Additive Dosing Skids)
- Load/unload liquid/gas from tankers (Loading Skids)
They’re not consumer-facing. Their clients are industrial giants in petroleum, chemicals, and fluid systems.
So basically:
💡 Not sexy. But very necessary.
Also, they have zero debt and 23 full-time employees — lean, clean, and (hopefully) profitable.
4. 📊 Financials Overview – Profit, Margins, ROE, Growth
| Metric | FY23 | FY24 | FY25 | Growth (FY24–25) |
|---|---|---|---|---|
| Revenue (₹ Cr) | 22.71 | 25.67 | 33.79 | 32% |
| PAT (₹ Cr) | 4.08 | 5.35 | 6.12 | 15% |
| EBITDA (₹ Cr) | 5.65 | 6.39 | 7.96 | 25% |
| Net Worth (₹ Cr) | 17.52 | 22.86 | 28.99 | 27% |
💰 EBITDA Margin (FY25): 24.20%
📈 PAT Margin: 18.61%
🔥 ROE: 23.62%
🧠 ROCE: 28.93%
Honestly?
For an industrial SME — those are sparkling margins. This company isn’t just breaking even — it’s throwing money into the tank and turning it into margin gold.
5. 🧮 Valuation – Is It Cheap, Meh, or Crack?
Let’s break down the numbers:
| Metric | Value |
|---|---|
| Issue Price (Upper) | ₹47 |
| Post Issue EPS | ₹4.29 |
| Post P/E Ratio | 10.96x |
| Book Value (FY25) | ₹27.31 |
| Price to Book | 1.72x |
| Market Cap Post IPO | ₹67.12 Cr |
🧠 EduInvesting FV Calculation:
Let’s apply a conservative sector P/E of 9x–11x on FY25 EPS of ₹4.29 →
Fair Value Range = ₹38.6 – ₹47.2 per share
So…
- At ₹47, they’re priced exactly at the top of our fair range.
- That’s fair, not fancy.
- Definitely not underpriced. But not a trap either.
6. 🔍 What’s Cooking – News, Triggers, Drama
Nothing spicy. But a few quiet positives:
- ✅ ₹5.05 Cr raised from Anchor Investors
- ✅ Expanding working capital to meet growing order book
- ✅ Sector tailwinds from oil & gas infrastructure
It’s not a T20 IPO. It’s Test Match investing. Slow. Durable. Possibly rewarding.
7. 🧾 Balance Sheet – How Much Debt, How Many Dreams?
| Metric | FY25 |
|---|---|
| Total Assets | ₹33.85 Cr |
| Net Worth | ₹28.99 Cr |
| Total Debt | ₹0.00 Cr ✅ |
| D/E Ratio | 0.00 |
This might be the only SME IPO this season with zero borrowing.
Promoters clearly believe in:
- 🧊 Cold processing
- 🔧 Hot engineering
- ❌ No debt drama
Verdict: Solid fundamentals. Respect.
8. 💸 Cash Flow – Sab Number Game Hai
SME IPOs rarely reveal full cash flow statements, but based on:
- Zero debt
- No negative retained earnings
- Working capital ask in IPO
…we can guess they’re operating cash flow positive. But not excess cash gushing. Just functional.
9. 🧮 Ratios – Sexy or Stressy?
| Ratio | Value |
|---|---|
| ROE | 23.62% |
| ROCE | 28.93% |
| PAT Margin | 18.61% |
| EBITDA Margin | 24.20% |
| P/E (Post) | 10.96x |
| P/B | 1.72x |
✅ Efficiency: 🔥
✅ Profitability: 🔥
✅ Valuation: Reasonable
A rare case where all lights are green. Which in IPO land is like spotting a unicorn driving a Nano.
10. 💵 P&L Breakdown – Show Me the Money
Let’s reconstruct:
- Revenue = ₹33.79 Cr
- EBITDA = ₹7.96 Cr → EBITDA Margin ~24%
- PAT = ₹6.12 Cr → Net Margin ~18.6%
This shows:
- Low interest cost (debt-free)
- Controlled overheads
- Decent pricing power
Clearly, the company runs a tight ship. Or rather, a tight skid (pun intended).
11. 🥊 Peer Comparison – Who Else in the Game?
Cryogenic OGS plays in the custom engineering skid systems niche. There aren’t direct listed peers, but here’s a broad comparison:
| Company | Business Segment | Rev (Cr) | PAT (Cr) | P/E | Debt |
|---|---|---|---|---|---|
| Cryogenic OGS | Oil-Gas Skids | 33.8 | 6.1 | 11x | 0 |
| Gensol Engineering | EV Infra/Consulting | 195 | 18 | 80x | High |
| Arvind SmartSpaces | Industrial EPC | 150+ | 20 | 20x | Medium |
Cryogenic OGS is tiny. But valuation-wise?
Much cheaper. Much cleaner. Much leaner.
12. 👪 Miscellaneous – Shareholding, Promoters
- Promoters: Nilesh Patel, Kiranben Patel, Dhairya Patel
- Pre-IPO: 100% holding
- Post-IPO: ~73% (after 37.8 lakh shares issued)
They’ve run this ship since 1997 — 25+ years of industrial R&D and execution.
13. 🧠 EduInvesting Verdict™
Cryogenic OGS: Tiny Skid, Solid Fundamentals
- ✅ Clean balance sheet
- ✅ Profitable and growing
- ✅ Industrial niche play
- ✅ Reasonable valuation
- ❌ No viral upside potential
- ❌ SME risk still applies
EduInvesting Fair Value Range: ₹38 to ₹47 per share
At ₹47, it’s fairly valued — no margin of safety, but no scam red flags either.
If you’re bored of fintech unicorns with fantasy models and want actual metal and meters, Cryogenic is a rare grounded play in the SME IPO circus.
But remember:
It’s not a multibagger rocket. It’s a reliable oil-grade engine.
✍️ Written by Prashant | 📅 June 30, 2025
Tags: Cryogenic OGS IPO, SME IPO, Oil & Gas Engineering, Skid Systems, Vadodara Manufacturing, EduInvesting, Beeline Capital IPO, Industrial SME IPO
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