CFF Fluid Control Limited IPO

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i. CFF Fluid Control is primarily in the business of manufacturing and servicing of shipboard machinery, critical component systems and test facilities for submarines & surface ships for The Indian Navy. Further they also design, manufacture and service Mechanical Equipments and systems for industries like Nuclear and Clean Energy.

ii. Company’s facilities are situated at Khopoli from where they design, manufacture and service fluid control systems, distributor and air panels, Weapons and Control Systems, Steering gear, Propulsion Systems, High Pressure Air Systems, Hydraulics Systems, Breathing and Diving Air Systems and Integrated Platform Management Systems for submarines and surface ships for the Indian Navy and its OEMs

iii. Since incorporation, up to December 31, 2022, they have completed orders from Indian Navy (including its OEMs) worth Rs. 18,678.79 lakhs and have a robust order book as on December 31, 2022 of Rs.9,004.00 lakhs of which over 90 % pertains to orders from Indian Navy (including its OEMs).

iv. The highlights of some of the key defence sector projects which they were part of w.r.t supply and servicing of equipments are as below:

i. SSK Class Submarine
ii. Kalveri Class Submarine
iii. Kilo Class Submarine

Competitive Strength
i. Experienced Promoter and Management Team
ii. Visible growth through robust order book position
iii. Strong Financial Performance
iv. Focus on Navy Defence Sector

Objects of the CFF Fluid Control Limited IPO:

The Company proposes to utilize the Net Proceeds from Issue towards funding the following objects: i. Funding Working capital requirements ii. Repayment of Loans iii. Purchase of machinery and equipment iv. Acquire Technology of " Towed Wire Antenna (TWA)" v. General Corporate Purpose

CFF Fluid Control Limited IPO Details:

Open Date: May 30 2023
Close Date: Jun 02 2023
Total Shares: 5,200,000
Face Value: ₹ 10 Per Equity Share
Issue Size: 85.80 Cr.
Lot Size: 800 Shares
Issue Price: ₹ 165 Per Equity Share
Listing At: BSE SME
Listing Date: Jun 12 2023

Promoters And Management:

i. Sunil Menon, aged 55 years is the founding Promoter of the company and was appointed on the Board of the Company since incorporation. He was re-designated as the Managing Director w.e.f. September 30, 2022. He has completed his Diploma in Hotel Management, Catering and Nutrition from Board of Technical Education Delhi. He has more than 30 years’ experience in Businesses like defence and in engineering company. He has taken the company from being a small components manufacturer to a strong company whose product and services portfolio includes Turnkey Projects, Integrating various platform systems. The company today has a strong product portfolio and a loyal customer base and he has contributed substantially in growth of business of company and has been a guiding force behind the growth and business strategy of the Company. ii. Gautam Makkar, aged 53 years is the founding Promoter of the company and was appointed on the Board of the Company since incorporation. He was re-designation as Chairmen and Non Executive Director w.e.f. September 30, 2022. He has completed his Bachelor of Electrical Engineering from Poona University in the year 1991. He has more than 25 years of experience in the fields of sourcing and providing solutions to defence, power and marine industry. As a Non Executive Director of the Company, he is responsible for providing his expertise for growth and expansion of the Company. iii. Priyanka Moondra Rathi, aged 30 years is a Non Executive Independent Director of the Company. She was appointed on the Board of the Company w.e.f. September 02, 2022. She has completed Bachelors of Commerce degree from Jai Narayan Vyas University in the year 2013 and completed Diploma in MBA in Finance from International Business Management Institute, Berlin, Germany in the year 2015. She is also a member of Institute of Company secretaries of India since 2017 and is currently pursuing Certified Public Accountants course.

Financials of CFF Fluid Control Limited IPO:

A. Balance Sheet
Particular (In Lakhs) Mar-20 Mar-21 Mar-22 Mar-23
Equity Share Capital 71.37 71.37 71.37 1,427.41
Reserves 608 632 1412 1032
Borrowings 1433 2261 1659 3591
Trade Payables 868 604 1961 1986
Other Liabilities 1325 664 490 1042
Total Liabilities 3626 3529 4110 6619
Net Block 1011 904 813 2220
Other Assets 0 5 6 5
Total NC Assets 1011 909 818 2225
Receivables 357 660 1314 2781
Inventory 1830 2005 2083 3452
Cash & Bank 281 202 405 216
Other Assets 830 456 972 880
Face value 10 10 10 10
B. Profit & Loss Statement
Particular (In Lakhs) Mar-20 Mar-21 Mar-22 Mar-23
Sales 3,178 1,452 4,699 6,770
Raw Material Cost 2,461 1,037 3,277 4,728
Prior period expenses 5 0 0 17
Employee Cost 128 101 97 211
Other Expenses 85 36 79 184
Other Income 19 29 14 11
Depreciation 129 108 91 117
Interest 209 173 125 242
Profit before tax 180 26 1,044 1,281
Tax 47 1 264 324
Net profit 133 25 780 957
C. Cash Flow Statement
Particular (In Lakhs) Mar-20 Mar-21 Mar-22 Mar-23
Cash From Operating Activity 1,967 -742 920 -216
Cash from Investing Activity 14 8 10 -1,245
Cash from Financing Activity -1,902 655 -727 1,137
Net Cash Flow 80 -79 203 -324

Comparison With Peers:

Name of the Company Revenue (Cr) Profit (Cr) EPS P/E CMP MCap (Cr)
CFF Fluid Control Limited 68 10 4.92 33.56 165 321
Data Patterns (India) Limited 453 124 22.15 74.90 1,659 9,287
MTAR Technologies Limited 573 104 33.84 55.7 1,886 5,802
Paras Defence and Space Technologies Limited 214 36 9.21 54.3 500 1,949
Bharat Electronics Ltd 17,734 2,986 4.08 27.3 112 81,614
*All the data is as per FY23.

Recommendation on CFF Fluid Control Limited IPO:

Review and Recommendation of CFF Fluid SME IPO by IZ team is 4/10 1. Company specialises in manufacturing and servicing shipboard machinery, critical component systems, and test facilities for submarines and surface ships for the Indian Navy. 2. They design, manufacture, and service mechanical equipment and systems for industries like nuclear and clean energy. Incorporated to meet the requirements of the Indian Navy and Mazagaon Dockyard and Shipbuilders Limited (MDL) for the Scorpene submarine program. 3. Signed Transfer of Technology (TOT) agreement with Coyard SAS France for design, manufacture, and supply of mechanical components for the Scorpene submarine program. Facilities located in Khopoli and approved by the Indian Navy, MDL, and Naval Group (France). ISO 9001:2015 certified for quality management systems. 4. Completed orders worth Rs. 18,678.79 lakhs from the Indian Navy with a robust order book of Rs. 9,004.00 lakhs, over 90% from Indian Navy. 5. Worked on projects like SSK Class Submarine, Kalveri Class Submarine, and Kilo Class Submarine. Employ 33 on-payroll employees, also hire industry professionals on a project-specific basis. 6. Competitive strengths: experienced promoters and management team, visible growth with robust order book, strong financial performance, technical capabilities, and strategic partnerships. 7. Strategies: expand business, maintain well-funded balance sheet, build professional organisation with qualified personnel, focus on innovation, technological advancements, and cost improvements. 8. The Revenue has Increased from Rs.31.7 Crore in FY20 to Rs.67.7 Crore in FY23. 9. The EBITDA has Increased from 5.17 Crore in FY20 to 16.4 Crore in FY23. 10. The PAT has Increased from 1.3 Crore in FY20 to 9.5 Crore in FY23. 11. As per FY23, CFO/EBITDA is 0.99 and Debtors Days is 150. 12. As per FY23, EPS is 4.92, Market Capitalization is 321.3 Crore & P/E is 33.56X .

Lead Manager of CFF Fluid Control Limited IPO:

  1. Aryaman Financial Services Limited

Registrar of CFF Fluid Control Limited IPO:

  1. Cameo Corporate Services Limited

Company Address:

CFF Fluid Control Limited Plot No 01, Survey No 96, Kumbhivli Madap Khopoli, Khalapur, Raigarh-410203 Phone: +91-2246086806 Email: Website:

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