Neetu Yoshi Ltd Q2FY26: From Scrap Trader to ₹466 Cr. Market Cap Foundry Superstar — 46% ROCE and 51% ROE Make Indian Railways Their Playground
1. At a Glance
In a market where most SME stocks are trying to learn the alphabet of profitability, Neetu Yoshi Ltd (NYS) has already written a best-seller. With a market cap of ₹466 crore, a current price of ₹120, and a stock P/E of 23.3, this baby foundry is punching way above its weight. From a trading outfit in 2020 to a full-fledged RDSO-approved foundry in 2025, it’s the story of how ambition meets molten metal — and somehow doesn’t melt down.
The company’s Q2FY26 results (September 2025) showed sales of ₹44.15 crore and a PAT of ₹11.54 crore, translating to a quarterly profit growth of 45.5% YoY and sales growth of 25.4%. That’s the kind of growth rate that makes even senior Railway officers pause mid-chai. The EBITDA margin of ~32% and ROCE of 46% tell us the machines in Haridwar aren’t just casting iron — they’re casting money.
But here’s the fun twist: 99% of their FY24 revenue still comes from the Indian Railways ecosystem. So, if the Ministry sneezes, Neetu Yoshi might catch pneumonia. Still, when you have a 51% ROE and debt-to-equity of just 0.11, you can afford a few sniffles.
Ever heard of a foundry company with a PEG ratio of 0.05 and a current ratio of 5.78? Neither had we. This is not your average “heat and beat” metalworks story — it’s a financial furnace.
2. Introduction
Once upon a time — well, actually in 2020 — when most of us were busy sanitizing doorknobs, Neetu Yoshi Ltd was busy trading railway-grade raw materials. Cut to 2025, and they’ve gone from traders to transformers, literally manufacturing cast iron and SG iron components for the Indian Railways’ rolling stock ecosystem.
The name might sound like your friendly neighborhood aunty, but Neetu Yoshi means serious metallurgy business. Their foundry in Bhagwanpur, Haridwar (7,173 sq. meters) now churns out everything from axle box housings to brake beams, and thanks to RDSO Class ‘A’ certification, they can supply over 25 components directly to India’s largest employer — the Railways.
Let’s be honest — any company that supplies 82% of its goods to West Bengal’s wagon hub (Jupiter Wagons alone accounts for 54.4% of sales) deserves applause… or at least a stress test. Revenue concentration is tighter than a railway schedule — Top 10 clients contribute 94.5% of FY24 revenue.
And yet, the company’s operating profit margin rocketed from 7% in FY23 to 36% in FY24. Talk about turning molten iron into gold.
Their upcoming Kanpur plant, funded through a ₹50.7 crore IPO, will make complete bogies and couplers — a major leap from parts to systems. It’s like graduating from supplying chai cups to running the pantry car.
3. Business Model – WTF Do They Even Do?
So, what does Neetu Yoshi actually do besides flexing those jaw-dropping financial ratios?
They are a customized ferrous metallurgical products manufacturer — in simple words, they make iron and steel components that move India’s trains. Think brake beams, axle housings, strut castings — basically, all the invisible heroes that keep wagons rolling without screaming in protest.
Their products range from 0.2 kg to 500 kg, meaning they can cast anything from a wrench-sized part to something big enough to cause a hernia.
Their integrated facility includes melting, moulding, machining, fettling, heat treatment, and painting — basically the entire foundry value chain under one roof. So, no outsourcing, no middlemen, no excuses.
And here’s the kicker — they’re not content being a “parts vendor.” The Kanpur expansion (₹50.7 crore capex) is aimed at producing complete bogies and couplers — high-value items with export potential. This could shift them from a B2B component supplier to a system integrator.
In a world where most foundries are stuck doing the same boring casting work, Neetu Yoshi’s ambition is as hot as its furnaces.
But hey, when 99% of your FY24 revenue comes from the Indian Railways, isn’t that like putting all your wagons on the same track? Let’s hope they’re not derailed by policy changes.
4. Financials Overview
Metric
Latest Qtr (Sep’25)
YoY Qtr (Sep’24 est)
Prev Qtr (Mar’25)
YoY %
QoQ %
Revenue (₹ Cr)
44.15
35.2
35.0
25.4%
26.1%
EBITDA (₹ Cr)
14.0
11.0
12.0
27.3%
16.7%
PAT (₹ Cr)
11.54
7.93
8.0
45.5%
44.3%
EPS (₹)
2.97
2.04
2.78
45.5%
6.8%
At an annualized EPS of ₹11.88, the P/E works out to ~10x based on the ₹120 CMP — far cheaper than its listed peers. But, as always, SME stocks like to play hide-and-seek with fundamentals after listing rallies, so stay grounded.
Neetu Yoshi’s EBITDA margin of 32% and PAT margin of 26% would make even large-cap engineering firms jealous.
Commentary: The financials read like a motivational poster: “Started from ₹5 crore sales in FY22, now we’re here — ₹79.5 crore.” But remember — growth this fast is like a pressure cooker; it cooks success but can also whistle loudly when overheated.
5. Valuation Discussion – Fair Value Range Only
Let’s play a quick classroom exercise called “Find the Fair Value” (for educational purposes only — not a call to mortgage your house).
(a) P/E Approach EPS (TTM): ₹5.94 Industry Avg P/E: 26.2 Company P/E: 23.3
Fair value range = ₹5.94 × (20x to 28x) = ₹119 – ₹166
Peers average ~20x (AIA Engineering 19x, Balu Forge 31x). Fair EV = 20 × ₹26 = ₹520 Cr → Equity value ≈ ₹520 – ₹13.8 Cr debt = ₹506 Cr Fair value ≈ ₹506 / 3.88 Cr shares = ₹130 per share
(c) DCF (Simple) Assuming 25% profit CAGR for 3 years, discount rate 12%, terminal growth 4%: DCF fair value range: ₹125 – ₹155
🧾 Fair Value Range (Educational Only): ₹120 – ₹160 per share (Not investment advice. Just math, not magic.)
6. What’s Cooking – News, Triggers, Drama
IPO Money at Work: The ₹50.7 Cr IPO raised in FY25 is now being deployed into the Kanpur plant, which will produce complete bogies and couplers — the bigger league of railway components.
Capacity Expansion: Installed capacity jumped from 4,493 MTPA in FY24 to 8,087 MTPA in FY25. That’s nearly doubling the furnace firepower.
Customer List That Matters: The company’s top three — Jupiter Wagons (54.4%), Titagarh Wagons (12.1%), and Om Besco (9.9%) — are India’s who’s who of wagon manufacturing. When these giants build, Neetu Yoshi bills.
Upcoming H1FY26 Earnings Call: Scheduled for Nov 10, 2025, so brace yourself for more data fireworks.
Fun fact: the company’s Company Secretary resigned in Aug 2025 and the disclosure was delayed — then refiled after BSE queried it. Hey, at least the iron isn’t the only thing
