1. At a Glance
Aluminium casting veteran Swastika Castal Ltd. raised ₹14.07 Cr via SME IPO at a fixed price of ₹65/share. Fully fresh issue. The IPO saw 3.48x overall subscription with strong retail demand (5.52x). Will this casting company solidify your portfolio?
2. Introduction with Hook
From railway parts to compressor housings — Swastika Castal molds molten aluminium into mission-critical components. Now, it’s molding an IPO dream. But is this metal marvel priced for long-term value or just a well-cast illusion?
- IPO Size: ₹14.07 Cr
- IPO Price: ₹65 (Fixed)
- Lot Size: 4,000 shares = ₹2.6L minimum
- Retail Subscription: 5.52x
- EPS (Post): ₹3.23 → P/E: ~20.1x
3. Business Model (WTF Do They Even Do?)
Swastika Castal is an aluminium casting specialist, serving high-precision needs across:
- Electrical Equipment
- Railways & Diesel Engines
- Industrial Applications (compressors, insulators, etc.)
Casting Types:
- Sand Casting (up to 250 kg)
- Gravity Casting (up to 80 kg)
- Centrifugal Casting
X-Factor: In-house heat treatment = better quality control, less reliance on third parties.
4. Financials Overview
| ₹ Cr | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue | 24.4 | 23.3 | 30.3 |
| EBITDA | 2.33 | 2.48 | 4.55 |
| PAT | 0.58 | 0.65 | 2.63 |
| Net Worth | 7.39 | 8.03 | 10.67 |
| Debt | 9.64 | 8.97 | 9.12 |
PAT Growth YoY: +305%
But revenue only grew 30% — Margin game strong or one-time gain? Worth watching.
5. Valuation
| Metric | Value |
|---|---|
| EPS (Post) | ₹3.23 |
| P/E | 20.14x |
| Book Value | ₹17.74 |
| Price/Book | 3.66x |
| ROE | 28.17% |
| ROCE | 32.74% |
Fair Value Range: ₹48 – ₹65
Pricing is at upper bound, riding on FY25 PAT spurt.
6. What’s Cooking – News, Triggers, Drama
- Capital Expenditure & Working Capital Focus: ₹5 Cr each from IPO
- Capacity expansion = growth lever
- SME listing = limited float but high volatility
- Product diversity across sectors buffers industry cyclicality
- FY25 margin bump possibly due to operational efficiency post-COVID — sustainability unclear
7. Balance Sheet
| Item | FY25 |
|---|---|
| Total Assets | ₹30.8 Cr |
| Net Worth | ₹10.67 Cr |
| Total Debt | ₹9.12 Cr |
| D/E | 0.85 ✅ |
| Post IPO Capital Infusion | ₹14 Cr |
Post-listing → stronger capital base, likely D/E < 0.5
✅ Room to borrow more efficiently if needed
8. Cash Flow – Sab Number Game Hai
| ₹ Cr | FY23 | FY24 | FY25 |
|---|---|---|---|
| CFO | ₹2.1 | ₹2.3 | ₹3.9 |
| CapEx | ₹-1.2 | ₹-1.6 | ₹-3.0 |
| FCF | ₹0.9 | ₹0.7 | ₹0.9 |
Positive free cash flow. And now with IPO money, they can expand without loans.
9. Ratios – Sexy or Stressy?
| Ratio | Value |
|---|---|
| ROE | 28.17% ✅ |
| ROCE | 32.74% ✅ |
| PAT Margin | 8.88% ✅ |
| EBITDA Margin | 15.36% ✅ |
| D/E | 0.85 ⚠️ |
| P/E | 20.1x ⚠️ |
| Price/Book | 3.66x ⚠️ |
Healthy fundamentals. But valuation is not cheap for a small-cap metal play.
10. P&L Breakdown – Show Me the Money
| ₹ Cr | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue | 24.4 | 23.3 | 30.3 |
| EBITDA | 2.33 | 2.48 | 4.55 |
| EBITDA Margin | 9.5% | 10.6% | 15.4% |
| PAT | 0.58 | 0.65 | 2.63 |
| PAT Margin | 2.37% | 2.79% | 8.88% |
That FY25 profit boom is big, but not yet backed by revenue multiples.
11. Peer Comparison
| Company | Revenue | PAT | P/E | ROE | Segment |
|---|---|---|---|---|---|
| Swastika Castal | ₹30 Cr | ₹2.6 Cr | 20x | 28% | SME Aluminium Casting |
| Auto Pins | ₹50 Cr | ₹5.5 Cr | 18x | 22% | SME Fasteners |
| Aditya Vision | ₹900 Cr | ₹36 Cr | 26x | 18% | Consumer Durable Retail |
Swastika trades closer to mid-sized SMEs, not microcaps. Priced in line with its recent margins.
12. Miscellaneous – Shareholding, Promoters
| Promoters | Pre IPO | Post IPO |
|---|---|---|
| Varun & Indra Sharda | 100% | 73.49% |
- Market Maker: Horizon Financial
- Lead Manager: Horizon Management
- Registrar: Accurate Securities
- SME listing (BSE) = Thin liquidity. Volatility alert 🚨
13. EduInvesting Verdict™
Swastika Castal is a niche player in high-quality aluminium casting — from electricals to railways. The financials are clean, the margins improving, and post-IPO cash will fuel expansion.
But — FY25 profits saw a sudden spike. Valuation is not cheap. SME listing limits investor base. This is a “wait-and-mature” type of play.
Final Take:
If you’re a long-term investor with risk appetite, the fundamentals support moderate allocation.
Just don’t expect it to list like a rocket — this one needs time to cool, set, and deliver returns.
Metadata
– Written by EduInvesting Team | July 23, 2025
– Tags: Swastika Castal IPO, Aluminium Casting IPO, SME IPO, Metal Sector SME, Horizon IPOs, Accurate Securities, Engineering IPOs
