🧵 At a Glance (50 words)
Neetu Yoshi Ltd, a railway component maker with castings from CP Assemblies to brake beams, is raising ₹77 Cr via fresh issue. FY24 PAT? ₹12.6 Cr. Margin? 26%. Valuation? ₹291 Cr. SME IPO at ₹75. Is this a steel-clad opportunity or just another overheated foundry fantasy?
1. 🏭 What Does Neetu Yoshi Do, Apart From Having a Dhansu Name?
Okay, let’s address the first thing: “Neetu Yoshi sounds like a desi anime character launching an IPO” — and we love it.
But the business? Dead serious.
- They manufacture ferrous metal components for Indian Railways — including:
- CP Assemblies, brake beams, end castings, struts (for suspension)
- Couplers, yoke pins, axle boxes (for wagons/coaches)
- Their castings range from 0.2 kg to 500 kg. That’s everything from a railway spoon to half a bogie.
- Certified by RDSO (Research Designs and Standards Organisation) — this is the railway equivalent of “Maa Kasam Legit Hoon.”
📍 Factory Location: Uttarakhand (low power tariff, near alloy suppliers, high altitude productivity bonus – jk)
2. 🧮 Financials: Indian Railways’ Profit-Making Bhai
Let’s talk numbers. Because without margin, there’s only mirage.
| Metric | FY22 | FY23 | FY24 | 9M FY24 (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 Margin | ~3% | ~7% | 36% | ~33% |
| PAT Margin | ~1.5% | ~2.6% | 26.5% | 23%+ |
📈 Net Worth grew 7x in 2 years.
📉 Debt reduced from ₹17.3 Cr to ₹8.4 Cr YoY.
🧠 TL;DR: This ain’t your regular SME IPO with “losses but a great story.” This one actually prints money.
3. 🎯 The IPO Itself — Size, Lot, Price
Here’s what you need to know:
| Detail | Value |
|---|---|
| Fresh Issue | 1.02 Cr shares (₹77.04 Cr) |
| Price Band | ₹71 – ₹75 |
| Lot Size | 1,600 shares |
| Retail Min Investment | ₹1,13,600 – ₹1,20,000 |
| HNI Min | ₹2.4L |
| Market Cap (Post Issue) | ₹291 Cr |
👨💼 Lead Manager: Horizon Management Pvt Ltd
📋 Registrar: Skyline Financial
🧹 Market Maker: NNM Securities (also seen in recent SME IPOs like Pyramid, Bhatia Colour Chem)
4. 🧠 Anchor Investors & IPO Math
🧲 Anchor Raised: ₹21.90 Cr
📅 Anchor Bidding Date: June 26
🧲 Anchor Lock-in:
- 50% till Aug 1
- 50% till Sep 30
📊 Allocation:
| Category | Shares |
|---|---|
| QIB | 47.43% |
| Anchor | 28.43% |
| NII | 14.27% |
| Retail | 33.24% |
| Market Maker | 5.06% |
👉 Translation: A strong anchor + QIB presence — not usual for BSE SME IPOs — indicates institutional interest.
5. 🧠 Valuation — Rail-Gadi Ya Rocket?
Key KPIs at ₹75:
- EPS (Post IPO): ₹4.12
- P/E Ratio: ~18.2x
- ROCE: 43.7%
- RONW: 99.2%
- Price to Book: 10.29x
🤔 But wait… 10x P/B for a casting co?
Yes, this is where the train screeches.
Peer Check:
| Company | P/E | RoE | Industry |
|---|---|---|---|
| Ramkrishna Forgings | 34x | 11% | Auto, rail |
| Texmaco Rail | 75x | 3% | Rail infra |
| Neetu Yoshi | 18.2x | 99% | SME steel casting |
👉 So, what gives?
Neetu Yoshi’s valuation seems justified — because its PAT is real, margins are juicy, and growth is exponential (10x revenue in 3 years). But the book value is tiny, so P/B looks inflated.
6. 🛠️ Where Will the ₹77 Cr Go?
👷♂️ Objects of Issue:
| Purpose | Amount (Cr) |
|---|---|
| New plant setup | ₹50.78 Cr |
| General corp use | Rest |
They’re doubling down on capacity to manufacture more castings for Indian Railways and others — classic growth capex.
7. 🧾 EduInvesting Verdict — Should You Apply?
Let’s break it down:
✅ The Good:
- Strong FY24 growth: Revenue ₹47 Cr → PAT ₹12.6 Cr
- ROE nearing triple digits
- High margins (36% EBITDA, 26% PAT)
- RDSO certified – moated business
- Railways = stable customer base
- Anchor & QIB participation is unusually strong for SME
⚠️ The Risky:
- P/B is sky-high at 10.3x
- Post-issue equity dilution reduces promoter holding significantly (no post-holding disclosed)
- ₹75/share might look steep for a company that was barely profitable in FY22
🎯 Fair Value Estimate (EduInvesting Style)
We use a blended average of:
- 20x Post-IPO EPS (₹4.12)
- 2.5x FY24 Sales
- PEG of 0.8 based on growth
FV Range = ₹72 – ₹85/share
👉 IPO Price of ₹75 is in the middle of our range
So, listing pop is likely, but long-term gains depend on plant execution and order flow from Indian Railways.
🧨 Final Take: Trains, Brains, and a ₹12 Cr Profit
Neetu Yoshi might sound like a reality show judge, but their financials are no joke.
In an SME IPO landscape full of “losses but dreams”, this one brings profits and plans.
Just remember: if IRCTC goes on strike or castings become obsolete, even a bullet-train can derail.
✍️ Written by Prashant | 📅 June 23, 2025
Tags: Neetu Yoshi IPO, SME IPO 2025, Railway Stocks, RDSO Certified, SME Valuation, Horizon IPO, EduInvesting Analysis, Anchor Investor IPO, High Margin IPOs, Ferrous Castings IPO
