1. At a Glance
You thought train parts were boring? MeetFrontier Springs, the silent steel slinger behind Vande Bharat’s smooth rides — and a stock that’s182% up YoY. In Q1 FY26 alone, it posted ₹15.8 Cr PAT (up 112% YoY), running on revenue of ₹75.3 Cr. With an ROCE of 42%, a P/E of 43x, and almost zero debt, Frontier is India’s most profitable coil that you probably never Googled. But at 15x book value? You better be sure it’s not just hype on rails.
2. Introduction – From Wagon Springs to Wealth Springs
In a world obsessed with AI chips and EV batteries,Frontier Springsis making a solid case for boring being beautiful. They don’t do flashy. They do forged springs for wagons, coaches, locomotives — and business that’sliterally under every railway seat in the country.
With India’s rail infra juggernaut (hello, PM Gati Shakti and Vande Bharat) charging ahead, Frontier has become a sleeper hit — pun very much intended. From ₹1,600 to ₹5,400 in just 18 months, this spring is bouncing higher than your fintech bag holders’ hopes.
3. Business Model (WTF Do They Even Do?)
Frontier Springs Ltd, incorporated in 1981, manufactures:
- LHB Springs: Used in high-speed rail coaches like Vande Bharat.
- Hot-Coiled Compression Springs: For wagons, locomotives, carriages.
- Forged Auto Parts: Niche supply for Indian Railways and global OEMs.
Customers? MostlyIndian Railways, their vendors, and a few export clients.
No B2C drama. No marketing blitz. Just industrial monopoly vibes in slow motion.
4. Financials Overview
Here’s where it gets wild.
FY25 (TTM):
- Revenue: ₹256 Cr (YoY ↑ 89%)
- EBITDA: ₹60 Cr
- PAT: ₹42 Cr
- EPS (TTM): ₹107.72
- P/E: ~43.7x
- ROE: 32.5%
- ROCE: 41.8%
- OPM: 24%
Margins are rising. EPS is
sprinting. But valuation isalready pricing in perfection.
5. Valuation – Fair Value Range (P/E, EV/EBITDA, DCF)
| Method | Range |
|---|---|
| P/E (25–30x on ₹107.72 EPS) | ₹2,693 – ₹3,231 |
| EV/EBITDA (18–22x on ₹60 Cr) | ₹2,520 – ₹3,080 |
| DCF (12% discount, 18% profit CAGR) | ₹2,700 – ₹3,500 |
Fair Value Range: ₹2,520 – ₹3,500
This FV range is for educational purposes only and is not investment advice.
Current market price? ₹4,706. Either we’re in “microcap euphoria” — or they’re hiding a railway contract the size of BEML.
6. What’s Cooking – Q1 Drama & Growth Trigger
- Q1 FY26: ₹75.3 Cr sales, ₹15.8 Cr PAT — highest ever quarterly profit.
- YoY PAT Growth: 112% — yes, you read that right.
- Order Book: Healthy, backed by Indian Railways’ capex binge.
- Forging Capacity Expansion: Ongoing investments in new SKUs, likely for exports.
No bonus, no split, just pure metal money.
7. Balance Sheet – Steel Spine, Not Spring Loaded
| FY25 (₹ Cr) | |
|---|---|
| Total Assets | ₹169 |
| Net Worth | ₹124 |
| Borrowings | ₹6 |
| Reserves | ₹120 |
Borrowings are laughable. This is analmost debt-free compounderwith enough operating cash to fund its own growth. Like a Maruti Omni doing
