1. At a Glance
Amic Forging Ltd, a steel hotshot from Bengal, has forged a profit machine out of carbon, alloy, and nickel—racking up a scorching ROCE of 47.5% and a 5-year PAT CAGR of 142%. With a recent capex bonanza and an asset-light past, the company now stands on the cusp of scale. Or is it overheating?
2. Introduction with Hook
Picture this: A steel bar heated to 1,200°C, beaten mercilessly into shape, and then polished into precision perfection. That’s not just a forging process—it’s also Amic Forging’s balance sheet journey.
- FY25 Net Profit: ₹36 Cr (vs ₹1 Cr in FY21)
- FY25 Revenue: ₹121 Cr
- ROE: 37.6%
- Debt: Zero. Nada. Nothing.
If Warren Buffett did biceps curls, they’d be shaped like Amic’s forged flanges.
3. Business Model (WTF Do They Even Do?)
Amic Forging is a heavy engineering component manufacturer focused on open-die forgings for:
- Power
- Oil & Gas
- Construction
- Railways
- Defense & Aerospace
Product Range:
Shafts, hubs, flanges, gear couplings, blanks—manufactured in exotic alloys like stainless steel, nickel, carbon steel, and tool steels.
USP:
- Precision machining
- Heat treatment
- Tailor-made forgings
From tiny torque-transmitting pieces to 50-ton power brutes, this isn’t your local hardware store.
4. Financials Overview
| Year | Revenue (₹ Cr) | EBITDA (₹ Cr) | PAT (₹ Cr) | OPM % | EPS (₹) |
|---|---|---|---|---|---|
| FY21 | ₹26 | ₹2 | ₹1 | 6% | 9.29 |
| FY23 | ₹116 | ₹14 | ₹10 | 12% | 112.52 |
| FY25 | ₹121 | ₹28 | ₹36 | 23% | 31.50 |
Profit has grown like it’s on creatine, and margins have flexed from 3% to 23% in five years. And no, that EPS jump wasn’t a typo.
5. Valuation
| Metric | Value |
|---|---|
| CMP | ₹1,651 |
| Market Cap | ₹1,864 Cr |
| EPS (TTM) | ₹31.50 |
| P/E | 52.4x |
| Book Value | ₹110 |
| P/B Ratio | 15.0x |
Valuation Band (FY26 Forward)
| Method | FV Range (₹) |
|---|---|
| P/E (30x FY26E EPS of ₹45) | ₹1,300–1,500 |
| EV/EBITDA (15x) | ₹1,450–1,700 |
| Asset Rebuild/Capex Replacement | ₹1,100–1,300 |
Fair Value Range: ₹1,300 – ₹1,700
CMP is almost fully priced, unless FY26 turns into a Thor-grade blowtorch year.
6. What’s Cooking – News, Triggers, Drama
- New Capex (₹27 Cr): Acquired land, machinery from Bengal Hammer.
- Factory Expansion: Renovation under way, 50-ton/day output capacity to go live Dec 2025.
- Convertible Warrants: 8,00,000 warrants allotted; equity dilution incoming.
- Zero Debt: Fully funded expansion—rare breed.
Translation: They’re not just forging metal; they’re forging destiny.
7. Balance Sheet
| Particulars | FY23 | FY24 | FY25 |
|---|---|---|---|
| Equity Capital | ₹0.86 Cr | ₹10 Cr | ₹10 Cr |
| Reserves | ₹19 Cr | ₹54 Cr | ₹114 Cr |
| Total Borrowings | ₹5 Cr | ₹4 Cr | ₹0 |
| Total Assets | ₹62 Cr | ₹92 Cr | ₹153 Cr |
| Net Worth | ₹20 Cr | ₹64 Cr | ₹124 Cr |
Debt-free, cash-rich, and asset-heavy. The only thing hotter than their furnace is their balance sheet.
8. Cash Flow – Sab Number Game Hai
| Year | CFO (₹ Cr) | CFI (₹ Cr) | CFF (₹ Cr) | Net Cash Flow |
|---|---|---|---|---|
| FY23 | ₹18 | -₹13 | -₹4 | ₹1 |
| FY24 | -₹8 | -₹10 | ₹29 | ₹11 |
| FY25 | ₹6 | -₹19 | ₹20 | ₹7 |
Capex-hungry but internally funded. Financing cash inflows were mostly equity-based, not debt-driven. Respect.
9. Ratios – Sexy or Stressy?
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| ROCE | 64% | 36% | 47.5% |
| ROE | — | 36% | 37.6% |
| Debtor Days | 69 | 85 | 83 |
| Inventory Days | 27 | 1 | 77 |
| CCC (Days) | -25 | 23 | 87 |
Verdict: Ultra-sexy. ROCE and ROE are red carpet-ready. The only red flag? Working capital bloat in FY25.
10. P&L Breakdown – Show Me the Money
| Year | Sales (₹ Cr) | OPM % | PAT (₹ Cr) | EPS (₹) |
|---|---|---|---|---|
| FY23 | ₹116 | 12% | ₹10 | ₹112.52 |
| FY24 | ₹126 | 13% | ₹14 | ₹13.19 |
| FY25 | ₹121 | 23% | ₹36 | ₹31.50 |
Yes, FY24 to FY25 revenue dipped. But OPM doubled and PAT tripled. Who needs growth when you’ve got margin?
11. Peer Comparison
| Company | CMP (₹) | P/E | ROCE % | OPM % | Sales (Cr) | PAT (Cr) |
|---|---|---|---|---|---|---|
| AIA Engg | 3,359 | 29.9 | 19.1 | 26.8% | 4,287 | 1,060 |
| Balu Forge | 666 | 36.6 | 31.3 | 27.2% | 924 | 204 |
| Steelcast | 1,189 | 33.3 | 32.9 | 28.2% | 376 | 72 |
| Amic Forging | 1,651 | 52.4 | 47.5 | 23.0% | 121 | 36 |
Amic wins on efficiency and profitability but loses on valuation. It’s the most expensive per rupee of earnings.
12. Miscellaneous – Shareholding, Promoters
| Category | Mar 2025 |
|---|---|
| Promoters | 57.96% |
| Public | 41.12% |
| FIIs/DIIs | 0.92% |
| Shareholders | 2,888 |
- Promoters added 0.2% stake in FY25.
- Public interest has tripled in a year.
- Upcoming dilution via warrants may affect EPS.
13. EduInvesting Verdict™
Amic Forging Ltd is not just flexing steel—it’s flexing discipline. With zero debt, explosive PAT growth, and double-digit ROCE for three straight years, it’s the real steel deal. But…
That 52x P/E? Oof. It’s priced like it forges titanium for Tesla. Any slip in margin, or a delay in factory ramp-up, and this fairy tale could get hot-rolled into a downtrend.
Verdict: Already forged. Now just needs to cool down… or deliver another red-hot year.
Metadata
– Written by EduInvesting Research | 13 July 2025
– Tags: Amic Forging Ltd, Forging Industry, Precision Engineering, Smallcap Manufacturing, Zero Debt, High ROCE, Steel Sector, Bengal Hammer Acquisition, Capex Expansion, SME IPO
