Mr. Naresh Kumar, aged 58 years, is the Promoter of the Company. He is the Director of the Company since Incorporation of the Company. He was further appointed as Chairman and Managing Director of the Company for a period of 3 years w.e.f. October 17, 2022. He has completed his degree in Master of Technology in Mechanical Engineering from Indian Institute of Technology, Madras in the year 1989. He has more than a decade of vast experience in manufacturing, setting up, casting and running of foundry, forging units and manufacturing of cargo containers. He is a visionary entrepreneur and has played a pivotal role in setting up business of the Company. He primarily looks after the overall business operations of the Company Ms. Jayashree Kumar, aged 56 years, is the Whole Time Director of the Company. She was appointed as Additional Executive Director w.e.f. November 09, 2012. She was further appointed as Whole Time Director of the Company for a period of 5 years w.e.f. April 05, 2022. She has completed her Master of Arts from University of Delhi in 1989. She is a self-motivated, very result-oriented, skilled in orchestrating tasks and details to achieve overall social service project goals. Mr. Devender Kumar, aged 48 is the Non-Executive Director of the Company. He was Appointed as Non-Executive Director of the Company w.e.f. October 17, 2022. He has completed his Master of Law from M.J.P. Rohilkhand University, Bareilly. He brings years of business and legal experience to the Board.

Particulars ( In Lakhs )	2021	2022	2023	3M-FY24
Revenue from Operations	1,120	4,945	6,327	2,464
Other Income	15	2	9	4
Total Revenue	1,135	4,947	6,336	2,468
Cost of Materials Consumed	1,366	4,104	5,212	1,768
Change in Inventory	-428	374	-512	173
Employee benefits expenses	39	74	103	58
Other Expenses	61	178	363	55
EBITDA	98	217	1,171	414
Depreciation & Amortisation	54	61	71	15
Finance Cost	27	31	18	2
EBIT	44	157	1,099	399
OPM (%)	8.62%	4.39%	18.47%	16.78%
PBT	17	125	1082	397
Tax	-19	8	278	103
PAT	35	117	804	294
NPM (%)	3.11%	2.37%	12.69%	11.90%
No.of Shares	71.80	71.80	71.80	71.80
EPS	0.49	1.63	11.19	4.08

 

Name of the Company	Revenue (In Crore)	PAT (In Crore)	EPS ( in Rs)	P/E	CMP	Mcap (In Crore)
Kalyani Cast-Tech Limited	63	8	11.19	12.4	139	100
Texmaco Rail & Engineering Limited	2,600	20	0.62	63.2	128	4,122
Titagarh Rail Systems Limited	2,780	126	10.89	47.0	784	9,975

* All the data is as per FY23.

Review and Recommendation of Kalyani Cast Tech SME IPO by IZ team is 6/10 1. Overview and Historical Context: Kalyani Cast Tech Ltd, established in 2012, began its journey in the casting industry with a dedicated unit in Rewari, Haryana. Over the years, the company has expanded its product range and client base, serving sectors such as railways, mining, cement, chemicals, and power. 2. Diversification and Expansion: In 2018, the company strategically diversified into manufacturing cargo containers, responding to market opportunities and extending its product line to include various container types, including specialized models. 3. Technological and Operational Excellence: The company employs advanced technologies, such as the no-bake molding system and an automatic sand plant. Its state-of-the-art facilities underscore its commitment to manufacturing excellence. 4. Export Ventures: Kalyani Cast Tech Ltd has initiated export operations, notably making sales in Russia during the FY 2022-23, which indicates an expansion beyond domestic markets. 5. Leadership and Innovation: Under the leadership of Mr. Naresh Kumar, an alumnus of IIT Madras, the company has made significant strides in product development and innovation, such as the introduction of FRP flooring in containers. 6. Growth Trajectory: The company has shown remarkable growth since its inception, with a nearly decade-long track record of expanding its product portfolio and manufacturing capabilities. 7. Client Relationships: Kalyani Cast Tech Ltd maintains a strong focus on customer satisfaction, which is reflected in its reputed client list and professional services. 8. Business Agility: The company demonstrates a strong ability to adapt to market changes, converting challenges into opportunities. 9. IPO Objectives: The upcoming IPO aims to raise capital primarily for working capital requirements and for other general corporate purposes. 10. Financial Health: The financial data indicates a robust growth in revenue from operations, increasing from INR 1,120 lakhs in 2021 to INR 6,327 lakhs in 2023. The company's EBITDA and PAT have also shown an upward trend, reflecting improved operational efficiency and profitability. 11. Market Position: Comparing Kalyani Cast Tech Ltd with its peers, the company has a competitive edge in terms of revenue and PAT growth. It has a lower P/E ratio than Texmaco Rail & Engineering Limited and Titagarh Rail Systems Limited, which could indicate a potentially undervalued stock or a leaner operation with higher earnings relative to its share price. 12. IPO Details: The IPO is scheduled to open on November 8, 2023, with a total of 2,166,000 shares offered at a price band of INR 137 - 139 per equity share. The listing is planned for the BSE SME platform on November 21, 2023. 13. Management Expertise: The company's management team, led by Mr. Naresh Kumar, Ms. Jayashree Kumar, and Mr. Devender Kumar, brings a wealth of experience in engineering, law, and social service projects, providing robust leadership for the company's operations and strategic direction. 14. Financial Metrics:  The revenue has increased from 11 Cr in Fy21 to 63 Cr in FY23. The EBITDA margins has also increased from  8.62% in FY21 to 18% in Fy23. PAT has also increased from 35 lac in Fy21 to 8 Cr in FY23. In the last 3 years they have generated INR 10 Cr of Cash from Operation. Total debt on books is INR 6 Cr which is manageable. The IPO is priced at P/E of 12.4x which is reasonably priced. Conclusion: Kalyani Cast Tech Ltd has demonstrated a consistent growth trajectory, strategic expansion into new markets, and a strong focus on technological innovation and customer satisfaction. The IPO presents an opportunity for the company to fuel its growth ambitions and enhance its competitive position in the industry. Investors considering the IPO would do well to analyze these factors in light of their individual investment strategies and market conditions.

Kalyani Cast Tech Ltd B-144 Second Floor DDA Shed Phase-1, Okhla Industrial Area Phase-1 New Delhi, South Delhi, 110020 Phone: 011-26444400 Email: info@kalyanicasttech.com Website: https://kalyanicasttech.com/