Hy-Tech Engineers Limited
At a Glance: Fast-Orientation Triage
What The Company Does: Operational & Strategic Architecture
Hy-Tech Engineers manufactures high-pressure hydraulic fittings (DIN-metric, JIC flared, ORFS, and conversion fittings) and forged metal components across 11,000+ SKUs. It operates 6 manufacturing facilities across Maharashtra and Madhya Pradesh, supplying critical fluid-transmission connections to construction equipment, agriculture machinery, automotive, railways, and defence OEMs.
| # | Checkpoint | Your Finding (Prospectus Data) | Status | Page Ref |
|---|---|---|---|---|
| 1 |
What does the company do, in one plain sentence?
|
Hy-Tech Engineers manufactures high-precision hydraulic fittings (DIN-metric, JIC flared, ORFS, and conversion fittings) and forged metal parts across 11,000+ SKUs for construction equipment, agriculture machinery, automotive, railways, and defence OEMs.
|
OK | Cover Page, p. 1; Our Business, p. 172-182 |
| 2 |
Operating history & year of incorporation
|
Established in 1978 as a private company (48+ years operating history), converted to a public limited company on March 23, 2022. Proven long-term operating track record in precision engineering.
|
OK | History and Corporate Matters, p. 195; Annexure V, p. 230 |
| 3 |
Industry / sub-sector & position in the value chain
|
Precision engineered hydraulic fittings and components industry. Operates as a Tier-1/Tier-2 manufacturer with captive backward integration in forging at Nashik supplying fittings plants and external OEMs/distributors.
|
OK | Industry Overview, p. 126; Our Business, p. 172-175 |
| 4 |
Stated competitive strengths - real or generic?
|
Tangible competitive strengths: extensive library of 11,000+ SKUs, backward integration with 3,120 MTPA captive forging facility at Nashik, modular cell-based manufacturing across 6 units, high-barrier IRIS railway certification and DRDO defence approvals, and 95.1% repeat customer revenue.
|
OK | Our Business - Competitive Strengths, p. 172-180 |
| 5 |
Stated growth strategy - concrete or aspirational?
|
Concrete 4-pillar growth strategy: (i) expanding manufacturing capacity by 41-83% across Shirwal, Kavathe, and Pithampur-I units via ₹29.97 cr IPO capex; (ii) product diversification into hydraulic valves; (iii) scaling penetration in railways (IRIS) and defence (DRDO); (iv) expanding export distribution network across North America and Europe.
|
OK | Our Business - Business Strategies, p. 179-181; Objects of the Offer, p. 97-103 |
| 6 |
Industry tailwinds vs headwinds
|
Tailwinds: Global hydraulic fittings market growing at 8-10% CAGR (USD 398.1M in CY25 to USD 725.2M by CY31); domestic infrastructure, Make in India, defence indigenization, and railways modernization (Vande Bharat). Headwinds: Steel input cost volatility, trade policy/tariff shifts in export markets, and high industry fragmentation (>90% unorganized).
|
OK | Industry Overview (CARE Report), p. 126-171; MD&A, p. 278-280 |
| 7 |
Who commissioned the industry report?
|
Industry research report titled 'Industry Research Report on Hydraulic Fittings Industry' was commissioned and paid for by Hy-Tech Engineers Limited from CARE Analytics and Advisory Private Limited (August 2026).
|
OK | Certain Conventions, p. 15; Industry Overview, p. 126; Risk Factor #38, p. 41 |
| 8 |
Is the TAM / market-size claim credible?
|
Credible: Global hydraulic fittings market estimated at USD 398.1M (~₹3,300 cr) in CY25 reaching USD 725.2M by CY31 (CAGR 10.5%); US market at 8.2% CAGR, Europe at 8.6% CAGR. Company's FY26 revenue of ₹189.4 cr represents ~5-6% of global and ~10-12% of organized domestic market.
|
OK | Industry Overview, p. 126-140; Our Business, p. 178 |
| 9 |
Market share and its trend
|
Operates in a highly fragmented industry where >90% of players are unorganized. Within the organized domestic space, Hy-Tech is an established player with revenue expanding from ₹137.71 cr (FY24) to ₹189.40 cr (FY26) (17.3% CAGR), reflecting steady market share gains in high-precision and export segments.
|
OK | Industry Overview, p. 150-160; Our Business, p. 172-176 |
| 10 |
Key competitors named
|
Listed peers named in DRHP: Aeroflex Industries Limited, Dynamatic Technologies Limited, Yuken India Limited. Global/domestic competitors include Parker Hannifin, Eaton, and unorganized domestic precision machine shops.
|
OK | Basis for Offer Price, p. 113; Our Business - Competition, p. 187 |
The IPO Itself: Capital Allocation & Objects Rupee Breakdown
The total issue size is ₹135.73 cr at ₹53 per share, split into a ₹60.00 cr Fresh Issue (44.2%) and a ₹75.73 cr OFS (55.8%) by the founders Hemant and Surekha Mondkar. Fresh proceeds are earmarked for growth capex (₹29.97 cr to expand capacity by 41-83% at Kavathe, Shirwal, and Pithampur-I) and debt deleveraging (₹16.00 cr), leaving the company nearly debt-free post-issue.
Offering Structure & Tranche Breakup
| Offering Parameter / Tranche | Mandate & Allocation | Value & Scale | Strategic Context & Terms |
|---|---|---|---|
| Fresh Issue (Primary Capital) | Growth capital directly reaching balance sheet | ₹315.00 Cr | Primary equity expansion funding capex, working capital & debt |
| Offer for Sale (OFS Liquidations) | Secondary liquidity for existing promoters & early funds | OFS Dilution Tranche | Proceeds go entirely to selling shareholders; zero reaches company |
| Gross Total Issue Size | Aggregate offering scale at upper price band | ₹315.00 Cr | Total book-building size |
| Anchor Investor Allocation | Reserved institutional QIB tranche | ₹40.72 Cr (30.0% of Issue) | Anchor lock-in: 50% for 30 days, 50% for 90 days post-listing |
| Pre-IPO WACA Benchmark | Weighted average cost of acquisition for promoters | Disclosed in Basis for Issue Price | Benchmark for pricing fairness and insider multiple markup |
Capital Allocation & Objects of the Issue
| Object of Offer / Purpose | Allocated Amount | % Share | Execution Timeline |
|---|---|---|---|
| Machinery Capex / Capacity Expansion (Shirwal, Kavathe, Pithampur-I) | ₹29.97 Cr | 49.9% | FY27-FY28 Scheduled |
| Debt Deleveraging (Prepayment of TJSB Bank Term Loans) | ₹16.00 Cr | 26.7% | FY27 Scheduled |
| General Corporate Purposes (GCP) & Issue Expenses | ₹14.03 Cr | 23.4% | Capped at ≤25% (SEBI ICDR) |
| Total Fresh Growth Capital | ₹60.00 Cr | 100.0% | Balance Sheet Inflow |
| # | Checkpoint | Your Finding (Prospectus Data) | Status | Page Ref |
|---|---|---|---|---|
| 11 |
Mainboard or SME issue?
|
Mainboard issue (listing on BSE and NSE pursuant to SEBI ICDR Regulation 6(1)).
|
OK | Cover Page, p. 1; The Offer, p. 58; Other Regulatory Disclosures, p. 322 |
| 12 |
Total issue size (Rs cr)
|
Total Issue Size: ₹135.73 cr (comprising ₹60.00 cr Fresh Issue + ₹75.73 cr OFS of 14,289,450 shares @ ₹53 cap/anchor price).
|
OK | Cover Page, p. 1; The Offer, p. 58; Anchor Report dated Aug 21, 2026 |
| 13 |
Fresh issue amount (Rs cr)
|
Fresh Issue amount: ₹60.00 cr (aggregating up to ₹600.00 million, or ~11,320,754 equity shares @ ₹53).
|
OK | The Offer, p. 58; Objects of the Offer, p. 97 |
| 14 |
OFS amount (Rs cr)
|
Offer for Sale (OFS) amount: ₹75.73 cr (14,289,450 equity shares @ ₹53).
|
Watch | Cover Page, p. 1; The Offer, p. 58; Objects of the Offer, p. 97 |
| 15 |
Fresh : OFS ratio
|
Fresh : OFS ratio = 44.2% Fresh (₹60.00 cr) : 55.8% OFS (₹75.73 cr). OFS is slightly larger than Fresh, but within normal ranges and well below the 70% red-flag threshold.
|
Watch | The Offer, p. 58; Objects of the Offer, p. 97 |
| 16 |
Who is selling in the OFS?
|
Promoter Selling Shareholders only: Hemant Tukaram Mondkar (up to 8,980,961 shares / ₹47.60 cr) and Surekha Hemant Mondkar jointly with Hemant Mondkar (up to 5,308,489 shares / ₹28.13 cr). No institutional PE/VC investors selling.
|
Watch | Cover Page, p. 1; The Offer, p. 58; Objects of the Offer, p. 97 |
| 17 |
How much does the COMPANY actually receive?
|
Company receives gross fresh proceeds of ₹60.00 cr less proportionate issue expenses (~₹6-8 cr estimated) = Net Proceeds of ~₹52-54 cr.
|
OK | Objects of the Offer, p. 97-98, 107 |
| 18 |
Objects: capex - amount & specificity
|
₹29.97 cr (₹299.66 million, 49.94% of gross fresh issue) earmarked for machinery procurement (CNC lathes, VMCs, rotary transfer machines, thread rolling, solar plant) at Kavathe, Shirwal, and Pithampur-I units. 100% backed by vendor quotations, though orders are yet to be placed.
|
Watch | Objects of the Offer, p. 97-103; Risk Factor #10, p. 25 |
| 19 |
Objects: debt repayment amount
|
₹16.00 cr (₹160.00 million, 26.67% of gross fresh issue) earmarked for prepayment/repayment of term loans availed from TJSB Sahakari Bank Ltd, significantly reducing finance costs and debt burden.
|
OK | Objects of the Offer, p. 97, 105-106 |
| 20 |
Objects: working capital amount
|
₹0.00 cr (Nil specific allocation for working capital in the Objects table; ongoing working capital requirements to be funded via internal accruals and general corporate purposes).
|
OK | Objects of the Offer, p. 97-98 |
| 21 |
Objects: acquisition - named target or 'future M&A'?
|
Nil amount allocated from Net Proceeds for acquisitions or M&A. (Company mentions long-term strategic evaluation of hydraulic valves in MD&A, but no IPO funds allocated).
|
OK | Objects of the Offer, p. 97-98; Our Business, p. 180 |
| 22 |
General Corporate Purposes (GCP) as % of fresh issue
|
General Corporate Purposes (GCP) is capped at 25.0% of Gross Proceeds of Fresh Issue (maximum ₹15.00 cr / ₹150.00M, less issue expenses = ~₹14.03 cr). Fully compliant with SEBI 25% ceiling.
|
OK | Objects of the Offer, p. 97-98 |
| 23 |
Issue expenses as % of the issue
|
Total Offer expenses estimated at ~₹8-10 cr (~6-7% of total issue size of ₹135.73 cr), shared proportionately between Company and Selling Shareholders based on shares offered.
|
OK | Objects of the Offer, p. 107-109 |
| 24 |
Overall read: growth / debt-repair / exit / mixed?
|
Mixed read: Balanced growth capex (₹29.97 cr, 50.0% of fresh) and debt deleveraging (₹16.00 cr, 26.7% of fresh), combined with promoter partial liquidity monetization (₹75.73 cr OFS).
|
OK | Objects of the Offer, p. 97-106; The Offer, p. 58 |
| 25 |
Pre-IPO placement done - at what price vs the IPO band?
|
No pre-IPO placement was undertaken. Last secondary transfer occurred on July 24, 2026 at ₹18.00 per share (FV ₹5).
|
OK | Capital Structure, p. 74; Basis for Offer Price, p. 117-118 |
| 26 |
WACA - weighted avg cost of acquisition of promoter/investor shares vs IPO price
|
Promoter WACA: Hemant Mondkar ₹0.22/sh, Surekha Mondkar ₹0.12/sh, Ashwin Mondkar ₹9.43/sh. Certified secondary transaction WACA over last 3 years: ₹15.12/sh. IPO Offer Price of ₹53 is 3.51x secondary WACA.
|
Watch | Cover Page, p. 1; Capital Structure, p. 93-94; Basis for Offer Price, p. 117-118 |
Business Quality: Concentration, Retention & Durability
Business durability is anchored by customer stickiness, recurring volume growth, and disciplined operational execution.
Revenue Breakdown & Product Segment Mix
| Product / Operating Segment | % Share | Revenue Value |
|---|---|---|
| Construction Machinery Hydraulic Fittings | 22.9% | ₹43.46 Cr |
| Agriculture Machinery & Tractors | 22.8% | ₹43.24 Cr |
| Automotive & Commercial Vehicles | 9.1% | ₹17.13 Cr |
| Hydraulic Power Systems & Injection Moulding | 9.1% | ₹17.19 Cr |
| Railways (IRIS Certified) & Defence (DRDO) | 1.5% | ₹2.75 Cr |
| Other Industrial Applications & Distributors | 34.4% | ₹65.09 Cr |
Customer & Geographic Concentration Matrix
| Counterparty / Customer Tier | Revenue Share (%) | Rupee Amount | Strategic Exposure Note |
|---|---|---|---|
| Domestic India Sales (Western & Central OEMs) | 70.6% | ₹133.78 Cr | Core domestic OEM network across MH & MP |
| International Export Sales (11 Countries) | 29.4% | ₹55.62 Cr | Global exports led by USA (21.4%) & Belgium (6.1%) |
| Top 1 Key Client (Tompkins Industries Inc) | 9.3% | ₹17.69 Cr | Largest single customer (<25% risk threshold) |
| Top 5 Key Clients / Accounts | 30.3% | ₹57.31 Cr | Major Tier-1 industrial buyers (<50% benchmark) |
| Top 10 Key Clients / Accounts | 45.3% | ₹85.84 Cr | Institutional tier (95.1% repeat revenue) |
| # | Checkpoint | Your Finding (Prospectus Data) | Status | Page Ref | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 27 |
Revenue breakdown by segment / product
|
End-use segment breakdown (FY26): Construction Machinery ₹43.46 cr (22.9%), Farming ₹43.24 cr (22.8%), Automotive ₹17.13 cr (9.1%), Hydraulic Systems ₹9.65 cr (5.1%), Injection Moulding ₹7.54 cr (4.0%), Railways & Defence ₹2.75 cr (1.5%), Others/Distributors ₹65.09 cr (34.4%). Total ₹189.40 cr. Product lines: DIN, JIC, ORFS, and conversion fittings across 11,000+ SKUs.
|
OK | Our Business, p. 176, 181-182; Restated Financials Note 30, p. 258 | ||||||||||||||
| 28 |
Top customer as % of revenue
|
Top 1 customer (Tompkins Industries Inc): FY26: 9.34% (₹17.69 cr), FY25: 7.82% (₹12.62 cr), FY24: 8.91% (₹12.27 cr). Comfortably below the 25-30% red-flag threshold.
Multi-Period Trend Breakdown
|
OK | Risk Factor #1, p. 17; Our Business, p. 185 | ||||||||||||||
| 29 |
Top 5 customers as % of revenue
|
Top 5 customers: FY26: 30.26% (₹57.31 cr), FY25: 26.00% (₹41.96 cr), FY24: 32.43% (₹44.65 cr). Well below the 50% red-flag benchmark.
Multi-Period Trend Breakdown
|
OK | Risk Factor #1, p. 17-18; Our Business, p. 185 | ||||||||||||||
| 30 |
Are customer relationships recurring/contracted or order-by-order?
|
Customer relationships are conducted purely on an order-by-order basis (short-cycle purchase orders with ~60-day delivery); no long-term take-or-pay or minimum volume contracts. Standard for precision component manufacturing.
|
Watch | Risk Factor #1 & #4, p. 17, 21; Our Business, p. 185 | ||||||||||||||
| 31 |
Recurring / repeat revenue %
|
High repeat customer revenue: FY26: 95.10% (₹180.08 cr from 114 repeat clients), FY25: 95.20% (₹153.64 cr from 128 clients), FY24: 91.20% (₹125.60 cr from 102 clients). Demonstrates strong customer stickiness.
Multi-Period Trend Breakdown
|
OK | Our Business, p. 177 | ||||||||||||||
| 32 |
Supplier concentration (top / top-5)
|
Top 1 Supplier: FY26: 21.62% (₹14.63 cr), FY25: 13.39% (₹8.23 cr), FY24: 20.48% (₹9.72 cr). Top 5 Suppliers: FY26: 47.33% (₹32.02 cr), FY25: 38.49% (₹23.67 cr), FY24: 48.87% (₹23.20 cr). Top 10 suppliers account for 65.61% in FY26.
Multi-Period Trend Breakdown
|
Watch | Risk Factor #6, p. 22-23; Our Business, p. 185-186 | ||||||||||||||
| 33 |
Single-source or single raw-material dependency?
|
Primary raw materials are carbon steel, alloy steel, and stainless steel. No single-vendor lock-in; sourced from multiple domestic steel stockists/mills (Dhand Steel, Goyal Bright, ESP Engineered, Bharti Hydro). Imported raw materials represent <1.0% of purchases.
|
OK | Risk Factor #6 & #15, p. 22-23, 27; Our Business, p. 185-186 | ||||||||||||||
| 34 |
Manufacturing footprint - single-plant dependency?
|
Operates 6 manufacturing facilities across Maharashtra (Thane, Nashik, Shirwal, Kavathe) and Madhya Pradesh (Pithampur-I, Pithampur-II) totaling 32,887 sq. mtrs built-up area. Nashik handles captive forging; machining and fittings spread across 5 units. No single critical plant bottleneck.
|
OK | Our Business - Manufacturing Facilities, p. 182-183 | ||||||||||||||
| 35 |
Current capacity utilisation
|
FY26 Capacity Utilisation: Shirwal 70.83% (102L pcs), Kavathe 60.42% (116L pcs), Pithampur-I 84.62% (44L pcs), Pithampur-II 68.33% (41L pcs), Thane 68.57% (24L pcs); Nashik Forging 67.53% (2,107 MT). Overall aggregate utilization is balanced at ~68-70%, leaving headroom for initial growth while justifying capex.
|
OK | Our Business - Installed Capacity and Capacity Utilization, p. 184 | ||||||||||||||
| 36 |
Geographic concentration of revenue
|
Revenue by Geography (FY26): Domestic 70.63% (₹133.78 cr, primarily Western & Central India); Exports 29.37% (₹55.62 cr across 11 countries, led by USA ₹40.58 cr / 21.42% and Belgium ₹11.63 cr / 6.14%). Balanced domestic and overseas footprint.
|
OK | Our Business, p. 176, 178; Risk Factor #11, p. 26 | ||||||||||||||
| 37 |
Asset-heavy or asset-light?
|
Moderately capital-intensive / asset-heavy manufacturing: Net Property, Plant & Equipment + CWIP = ₹65.18 cr as of FY26; Net fixed asset turnover = Revenue ₹189.40 cr / Net PPE ₹59.43 cr = 3.19x.
|
OK | Annexure I (Assets), p. 224; Note 4, p. 248; MD&A, p. 278 | ||||||||||||||
| 38 |
Working-capital intensity
|
High working capital intensity: Net Working Capital (Current Assets - Current Liabilities) = ₹64.85 cr as of FY26 (34.2% of FY26 revenue), driven by trade receivables (₹49.90 cr / 92 debtor days) and inventory (₹28.37 cr / 150 inventory days).
|
Watch | Annexure I, p. 224; Basis for Offer Price, p. 116; MD&A, p. 298 | ||||||||||||||
| 39 |
Distribution model (direct / dealer / online)
|
Hybrid dual-channel model: Direct sales to OEMs (170 direct customers in FY26, ~65.6% of revenue) + 7 active distributors/distribution partners (~34.4% of revenue, average ₹3.65 cr revenue per distributor). North American exports supported by Hy-Tech USA Inc.
|
OK | Our Business, p. 176, 180; Basis for Offer Price, p. 111 | ||||||||||||||
| 40 |
Order book / backlog (if relevant)
|
Hydraulic fittings are sold primarily on short-cycle purchase orders (60-day delivery schedules) rather than multi-year contract backlogs. No formal long-term order book disclosed in RHP.
|
OK | Risk Factor #1 & #4, p. 17, 21; MD&A, p. 285 | ||||||||||||||
| 41 |
Cyclicality of the business
|
Moderate cyclicality tied to end-user Capex and production cycles in construction machinery (22.9%), agriculture (22.8%), and automotive (9.1%). Diversification across 11,000 SKUs, exports (29.4%), and entry into rail/defence provides counter-cyclical resilience.
|
OK | Our Business, p. 176, 179-180; MD&A, p. 279 | ||||||||||||||
| 42 |
Entry barriers / moat - real or weak?
|
Moderate moat: High customer switching costs due to OEM vendor qualification, IATF 16949 / IRIS railway certifications, DRDO defence approvals, 11,000+ SKU tooling library, and backward integrated captive forging. Low barriers only in generic low-end unorganized machine shop segment.
|
OK | Our Business - Strengths, p. 172-180; Competition, p. 187 | ||||||||||||||
| 43 |
Key licences / regulatory approvals the business depends on
|
Holds essential operating consents (State Pollution Control Board consents under Air & Water Acts, Factory Licenses, MIDC leases, IATF 16949, ISO 9001/14001/45001, IRIS ISO/TS 22163). All material licenses active; routine renewals underway.
|
OK | Government and Other Approvals, p. 318-321; Our Business, p. 187 | ||||||||||||||
| 44 |
Technology / obsolescence risk
|
Low obsolescence risk: Fluid power and hydraulic transmission fittings are foundational mechanical components in heavy equipment, construction, and tractors. Transition to electro-hydraulic systems still requires high-pressure fittings and conversion adapters.
|
OK | Industry Overview, p. 126-135; Risk Factor #37, p. 41 |
Are The Numbers Real? Multi-Year Forensic Quality Audit
The financials are backed by genuine cash flows: 3-year cumulative CFO stands at ₹66.02 cr against cumulative PAT of ₹53.81 cr (CFO/PAT ratio of 1.23x). Free cash flow surged to +₹18.78 cr in FY26. Operating margins have remained stable at ~22.0% EBITDA margin across FY25 and FY26, and total debt decreased from ₹43.53 cr in FY25 to ₹29.76 cr in FY26.
3-Year Audited Financial Performance Summary
| Financial Parameter / Metric | FY24 | FY25 | FY26 | 3-Yr CAGR |
|---|---|---|---|---|
| Revenue from Operations | ₹137.71 Cr | ₹161.38 Cr | ₹189.40 Cr | +17.3% |
| EBITDA (Operating Profit) | ₹22.55 Cr (16.4%) | ₹35.79 Cr (22.2%) | ₹41.69 Cr (22.0%) | +36.0% |
| Profit After Tax (PAT) | ₹11.60 Cr (8.2%) | ₹19.62 Cr (11.8%) | ₹22.59 Cr (11.7%) | +39.6% |
| Operating Cash Flow (CFO) | ₹18.68 Cr | ₹17.02 Cr | ₹30.33 Cr | 1.23x CFO/PAT |
| ROCE (Return on Capital) | 15.24% | 20.46% | 24.40% | +916 bps |
| Debt-to-Equity (D/E) | 0.50x | 0.43x | 0.24x | 0.10x Post-IPO |
| # | Checkpoint | Your Finding (Prospectus Data) | Status | Page Ref | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 45 |
Revenue (3 yrs) and CAGR
|
Revenue from Operations: FY24 ₹137.71 cr → FY25 ₹161.38 cr → FY26 ₹189.40 cr; 2-year CAGR of 17.28%. (Total Income: FY24 ₹141.17 cr → FY25 ₹166.71 cr → FY26 ₹193.44 cr, CAGR 17.06%).
Multi-Period Trend Breakdown
|
OK | Restated Financial Statements, Annexure II, p. 226; Basis for Offer Price, p. 116 | ||||||||||||||
| 46 |
Is growth organic or acquisition-driven?
|
100% organic growth driven by higher production volumes across Shirwal and Kavathe units, addition of new SKUs (880 new SKUs in FY26), new OEM onboarding, and export growth. No acquisitions during the 3-year period.
|
OK | MD&A, p. 278-285; Our Business, p. 172 | ||||||||||||||
| 47 |
Gross margin trend (3 yrs)
|
Gross Margin (Revenue minus Raw Materials & Inventory Change): FY24: 63.90% (₹88.00 cr) → FY25: 65.42% (₹105.58 cr) → FY26: 65.16% (₹123.42 cr). Stable and resilient gross margin profile across 3 years.
Multi-Period Trend Breakdown
|
OK | Annexure II (P&L), p. 226; MD&A, p. 299 | ||||||||||||||
| 48 |
EBITDA and EBITDA-margin trend
|
EBITDA: FY24 ₹22.55 cr (16.38% margin) → FY25 ₹35.79 cr (22.18% margin) → FY26 ₹41.69 cr (22.01% margin). Strong EBITDA margin expansion from FY24 to FY25-26 (+563 bps) driven by operating leverage and captive forging.
Multi-Period Trend Breakdown
|
OK | Basis for Offer Price, p. 116; Other Financial Information, p. 276 | ||||||||||||||
| 49 |
Sudden margin spike right before the IPO?
|
EBITDA margin jumped from 16.38% in FY24 to 22.18% in FY25, then held steady at 22.01% in FY26. PAT margin similarly moved from 8.21% (FY24) to 11.77% (FY25) and 11.68% (FY26). Margin stepped up in FY25 and was sustained in FY26 rather than a one-off FY26 spike.
Multi-Period Trend Breakdown
|
OK | Basis for Offer Price, p. 116; Restated Financials, p. 226 | ||||||||||||||
| 50 |
PAT and PAT-margin trend
|
Restated PAT: FY24 ₹11.60 cr (8.21% PAT margin on total income) → FY25 ₹19.62 cr (11.77% margin) → FY26 ₹22.59 cr (11.68% margin). PAT CAGR of 39.58% over FY24-FY26.
Multi-Period Trend Breakdown
|
OK | Restated Financials, Annexure II, p. 226; Basis for Offer Price, p. 116 | ||||||||||||||
| 51 |
Other income as % of PAT
|
Other Income / PAT: FY24: 29.88% (₹3.47 cr / ₹11.60 cr) → FY25: 27.14% (₹5.33 cr / ₹19.62 cr, included ₹2.69 cr PPE gain) → FY26: 17.84% (₹4.03 cr / ₹22.59 cr, interest income ₹1.04 cr, scrap sales ₹5.52 cr classified in op rev, forex gains). Trend is declining.
Multi-Period Trend Breakdown
|
Watch | Restated Financials Note 31, p. 259; Annexure II, p. 226 | ||||||||||||||
| 52 |
CFO (operating cash flow) trend
|
Cash Flow from Operations (CFO): FY24 ₹18.68 cr (186.77M) → FY25 ₹17.02 cr (170.16M) → FY26 ₹30.33 cr (303.25M). Robust positive CFO across all three years.
Multi-Period Trend Breakdown
|
OK | Restated Financial Statements, Annexure IV, p. 228 | ||||||||||||||
| 53 |
CFO / PAT (cash conversion), multi-year
|
CFO / PAT: FY24: 1.61x (₹18.68 cr / ₹11.60 cr) → FY25: 0.87x (₹17.02 cr / ₹19.62 cr) → FY26: 1.34x (₹30.33 cr / ₹22.59 cr). 3-year cumulative CFO / PAT = ₹66.02 cr / ₹53.81 cr = 1.23x. Exceeds benchmark (>0.70x).
Multi-Period Trend Breakdown
|
OK | Annexure II & IV, p. 226, 228 | ||||||||||||||
| 54 |
Was CFO negative in any year?
|
No. CFO was positive in every fiscal year: FY24 ₹18.68 cr, FY25 ₹17.02 cr, FY26 ₹30.33 cr.
Multi-Period Trend Breakdown
|
OK | Restated Cash Flow Statement, Annexure IV, p. 228 | ||||||||||||||
| 55 |
Free cash flow (CFO minus capex)
|
FCF (CFO minus Payments for PPE & Intangibles): FY24: -₹9.96 cr (18.68 - 28.64) → FY25: +₹1.61 cr (17.02 - 15.41) → FY26: +₹18.78 cr (30.33 - 11.55). 3-year cumulative FCF = +₹10.43 cr. Turned strongly positive in FY26.
Multi-Period Trend Breakdown
|
OK | Restated Cash Flow Statement, Annexure IV, p. 228 | ||||||||||||||
| 56 |
Total debt and net debt
|
Total Borrowings: FY24 ₹40.84 cr → FY25 ₹43.53 cr → FY26 ₹29.76 cr. Cash & Bank Balances (FY26): ₹14.96 cr. Net Debt (FY26): ₹14.80 cr (down sharply from ₹42.22 cr in FY25 and ₹35.34 cr in FY24).
Multi-Period Trend Breakdown
|
OK | Restated Statement of Assets & Liabilities, p. 224-225; Notes 21 & 24, p. 254, 256 | ||||||||||||||
| 57 |
Debt / Equity
|
Debt-to-Equity Ratio: FY24: 0.50x (49.67%) → FY25: 0.43x (42.99%) → FY26: 0.24x (24.39%). Low and declining leverage; comfortably below 1.5-2.0x flag trigger.
Multi-Period Trend Breakdown
|
OK | Basis for Offer Price, p. 116; Financial Indebtedness, p. 311 | ||||||||||||||
| 58 |
Interest coverage (EBIT / interest)
|
Interest Coverage Ratio: FY24: 5.29x (or EBIT 18.68 cr / Int 2.87 cr = 6.50x) → FY25: 5.34x (EBIT 31.01 cr / Int 4.81 cr = 6.44x) → FY26: 6.93x (EBIT 35.03 cr / Int 4.47 cr = 7.84x). Strong debt service capacity (>3x benchmark).
Multi-Period Trend Breakdown
|
OK | Basis for Offer Price, p. 116; Annexure II, p. 226 | ||||||||||||||
| 59 |
ROE and trend
|
Return on Equity (RoNW): FY24: 15.11% → FY25: 21.39% → FY26: 20.24%. Consistent high return on net worth (>20%).
Multi-Period Trend Breakdown
|
OK | Basis for Offer Price, p. 113, 116; Other Financial Information, p. 276 | ||||||||||||||
| 60 |
ROCE and trend
|
Return on Capital Employed (ROCE): FY24: 15.24% → FY25: 20.46% → FY26: 24.40%. Consistently expanding ROCE (+916 bps over 2 years).
Multi-Period Trend Breakdown
|
OK | Basis for Offer Price, p. 116 | ||||||||||||||
| 61 |
ROCE vs cost of capital
|
FY26 ROCE of 24.40% significantly exceeds the company's estimated cost of capital (~10-12%), demonstrating strong economic value creation (+1,240 bps spread).
|
OK | Basis for Offer Price, p. 116; Restated Financials, p. 224-226 | ||||||||||||||
| 62 |
Debtor (receivable) days and trend
|
Trade Receivables Turnover: FY24: 3.47x (105 days) → FY25: 3.91x (93 days) → FY26: 3.96x (92 days). Year-end debtor days = 49.90 / 189.40 * 365 = 96.2 days (improved from 103.4 days in FY25).
Multi-Period Trend Breakdown
|
OK | Basis for Offer Price, p. 116; Annexure I, p. 224 | ||||||||||||||
| 63 |
Inventory days and trend
|
Inventory Turnover Ratio: FY24: 2.28x (160 days) → FY25: 2.48x (147 days) → FY26: 2.44x (150 days). Year-end inventory days vs raw materials = 28.37 / 67.32 * 365 = 153.8 days. Stable inventory holding needed for 11,000 SKU delivery readiness.
Multi-Period Trend Breakdown
|
Watch | Basis for Offer Price, p. 116; Annexure I, p. 224 | ||||||||||||||
| 64 |
Payable days and trend
|
Trade Payables Turnover Ratio: FY24: 4.83x (76 days) → FY25: 6.30x (58 days) → FY26: 7.10x (51 days). Year-end payable days = 14.88 / 65.98 * 365 = 82.3 days. No abnormal stretch of creditors.
Multi-Period Trend Breakdown
|
OK | Basis for Offer Price, p. 116; Annexure I, p. 225 | ||||||||||||||
| 65 |
Cash conversion cycle
|
Cash Conversion Cycle (Debtor + Inventory - Payable days): FY24: 189.7 days → FY25: 182.6 days → FY26: 190.4 days (or year-end basis: FY24: 151.8 days → FY25: 159.6 days → FY26: 167.7 days). Stable ~180-190 days cycle.
Multi-Period Trend Breakdown
|
OK | Basis for Offer Price, p. 116; Restated Financials, p. 224-226 | ||||||||||||||
| 66 |
Contingent liabilities vs net worth
|
Contingent liabilities: FY26: ₹0.00 cr (Nil); FY25: ₹0.00 cr (Nil); FY24: ₹0.15 cr (₹1.51M bank guarantees). Contingent liabilities as % of FY26 Net Worth (₹122.02 cr) is 0.00%.
Multi-Period Trend Breakdown
|
OK | Summary of Contingent Liabilities, p. 65; Restated Financials Note 40, p. 263 | ||||||||||||||
| 67 |
Capex history vs proposed capex
|
Historical Capex (Cash Outflows for PPE & Intangibles): FY24: ₹28.64 cr, FY25: ₹15.41 cr, FY26: ₹11.55 cr (Total 3-yr Capex = ₹55.60 cr). Proposed IPO Capex: ₹29.97 cr over FY27-FY28 (₹5.00 cr in FY27, ₹24.97 cr in FY28). Proposed capex is well in line with historical execution scale.
Multi-Period Trend Breakdown
|
OK | Annexure IV (Cash Flows), p. 228; Objects of the Offer, p. 98 | ||||||||||||||
| 68 |
Dividend history
|
Dividends Paid: FY24: ₹0.56 cr (₹5.59M), FY25: ₹0.56 cr (₹5.59M), FY26: ₹2.09 cr (₹20.88M, dividend of ₹0.40/sh). Board has recommended sustainable dividend payouts.
Multi-Period Trend Breakdown
|
OK | Annexure IV, p. 228; Dividend Policy, p. 221; Note 47.2, p. 268 | ||||||||||||||
| 69 |
Standalone vs consolidated divergence
|
Minimal divergence: Subsidiary Hy-Tech ACR Private Limited was an inactive entity struck off on Jan 20, 2026. Consolidated revenue and PAT are virtually 100% Hy-Tech standalone.
|
OK | Restated Financials Note 1 & 2, p. 230; Note 47.4, p. 270 | ||||||||||||||
| 70 |
Material restatement adjustments?
|
No material restatements to profits or equity. Annexure VII Part A confirms nil adjustments to historical profits or equity; only standard Ind AS grouping and audit trail disclosures under Part B.
|
OK | Restated Financial Statements, Annexure VII, p. 275 | ||||||||||||||
| 71 |
Auditor qualifications / emphasis of matter
|
Unmodified audit report. Only informational non-adjusting remark regarding audit trail (edit log) feature not enabled at Nashik unit till June 24, 2024 and database-level direct logging limitation in ERP. No financial qualification.
|
OK | Auditor's Report, p. 224; Annexure VII Part B, p. 275 | ||||||||||||||
| 72 |
Aggressive revenue-recognition policy?
|
Conservative policy under Ind AS 115: Revenue from sale of goods recognized upon transfer of control/dispatch or PPAP approval by OEM. Job work recognized upon completion/dispatch. Standard 60-day credit period.
|
OK | Material Accounting Policies Note 3.11, p. 238-239; MD&A, p. 285 |
Governance Architecture & Related Party Transactions
Promoters hold 97.99% pre-issue and retain ~71.23% post-issue with zero encumbrance or share pledge. Promoter loans of ₹4.00 cr were fully repaid by the company in FY26. Related party sales (3.62% of revenue) and purchases (0.15% of costs) are low and conducted on an arm's length basis. The Board is balanced with 50% independent directors carrying extensive corporate backgrounds.
Pre & Post-Issue Shareholding Structure
| Shareholder Category / Promoter | Pre-IPO % | Post-IPO % | Pledge Status | Statutory Lock-in |
|---|---|---|---|---|
| - | - | - | Nil | Standard |
| - | - | - | Nil | Standard |
| - | - | - | Nil | Standard |
| - | - | - | Nil | Standard |
| # | Checkpoint | Your Finding (Prospectus Data) | Status | Page Ref |
|---|---|---|---|---|
| 73 |
Promoter background and track record
|
Hemant Tukaram Mondkar (CMD, 78 yrs) has 48+ years experience in precision machining and hydraulic engineering; co-promoters Surekha Mondkar (ED, 78 yrs) and Ashwin Mondkar (NED, US operations lead). No track record of corporate default or bankruptcy.
|
OK | Our Promoters, p. 215-218; Our Management, p. 200-204 |
| 74 |
Promoter holding pre-IPO
|
Promoters collectively hold 97.99% of pre-IPO equity capital (81,851,840 shares out of 83,531,840 shares: Hemant Mondkar 64.81%, Surekha Mondkar 24.83%, Ashwin Mondkar 8.35%).
|
OK | Capital Structure, p. 74, 92-93; Our Promoters, p. 215 |
| 75 |
Promoter holding post-IPO
|
Post-IPO Promoter holding remains strong at ~71.23% (67,562,390 shares out of 94,852,594 post-issue shares @ ₹53). Promoters retain firm controlling majority; high skin in the game.
|
OK | Capital Structure, p. 74, 92-95 |
| 76 |
Promoter share pledge
|
0.00% (Nil promoter shares pledged). Confirmation provided that Promoters' shares are completely encumbrance-free.
|
OK | Capital Structure, p. 91 |
| 77 |
Promoter / KMP remuneration vs PAT and peers
|
FY26 Remuneration: CMD Hemant Mondkar ₹1.48 cr (₹14.81M), ED Surekha Mondkar ₹0.38 cr (₹3.77M). Total Promoter Remuneration = ₹1.86 cr (8.22% of FY26 PAT ₹22.59 cr). Other KMPs (CFO ₹0.35 cr, COO ₹0.47 cr, CS ₹0.10 cr). Reasonable vs sector benchmarks.
|
OK | Our Management, p. 204, 212-213; Note 47.2, p. 268-269 |
| 78 |
Group structure - complex / circular / many entities?
|
Simple group structure: 2 promoter group entities (NR Hy Tech Engineers Pvt Ltd, Hy Tech Fluid Power Pvt Ltd), 1 US affiliate (Hy-Tech USA Inc), and 1 fastner entity (Fasto Engineering). Sole subsidiary Hy-Tech ACR struck off in Jan 2026. No convoluted cross-holdings.
|
OK | Group Companies, p. 219; Note 47.1, p. 268 |
| 79 |
Auditor - reputable? Recent change or resignation?
|
Statutory Auditors: G. M. Kapadia & Co., Chartered Accountants (reputable mid-tier firm with extensive capital markets audit experience). No mid-term resignation prior to IPO.
|
OK | General Information, p. 67; Restated Financials, p. 222 |
| 80 |
CFO / KMP churn before the IPO
|
Stable management team: CFO Sunil Satwani appointed Dec 28, 2024 (associated since Sept 2022); CS Sai Ranadive appointed Feb 5, 2025; COO Sandeep Rane associated since April 2023. Professionalization ahead of listing.
|
OK | Our Management, p. 212-214 |
| 81 |
Board: proportion of independent directors
|
Board consists of 8 Directors: 3 Executive/Promoter (CMD, ED, WTD Sunil Sathe), 1 Non-Executive Promoter Director (Ashwin Mondkar), and 4 Independent Directors (50.0% of Board, including 1 woman Independent Director Nandeeta Wagh). Fully compliant with SEBI LODR.
|
OK | Our Management - Board of Directors, p. 200-203 |
| 82 |
Independent-director credentials - real or token?
|
Real professional credentials: (i) Satish Kulkarni (Ex-Chairman SCIB Paints / Asian Paints 27 yrs exp); (ii) Chetan Sapre (FCA, valuation expert); (iii) Vivek Patwardhan (ex-HR head Asian Paints); (iv) Nandeeta Wagh (ex-L&T / business leader).
|
OK | Our Management - Brief profiles of directors, p. 202-203 |
| 83 |
ESOP / outstanding options - dilution overhang
|
Nil ESOP pool, nil outstanding convertible instruments, warrants, or options. Zero dilution overhang.
|
OK | Capital Structure, p. 96 |
| 84 |
Lock-in: promoter and anchor / pre-IPO investors
|
20% minimum promoter contribution locked in for 3 years (due to capex >50% of fresh issue); balance promoter holding locked for 1 year; pre-IPO non-promoter shares locked for 6 months; Anchor allocation (₹40.72 cr) locked 50% for 30 days and 50% for 90 days.
|
OK | Capital Structure, p. 90-91 |
| 85 |
Past corporate-governance issues / regulatory strictures
|
Nil SEBI, RBI, or Stock Exchange penalties/strictures against Company or Promoters in the last 5 years. Minor administrative/labour compliance notices disclosed and defended.
|
OK | Outstanding Litigation, p. 313-317 |
| # | Checkpoint | Your Finding (Prospectus Data) | Status | Page Ref | ||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 86 |
Sales to related parties (% of revenue)
|
FY26: ₹6.86 cr (3.62% of revenue from operations: Hy-Tech USA Inc ₹6.71 cr, Hy Tech Fluid Power ₹0.12 cr, NR Hy Tech ₹0.03 cr); FY25: ₹5.05 cr (3.13%); FY24: ₹5.67 cr (4.11%). Low and stable percentage (<5%).
Multi-Period Trend Breakdown
|
OK | Note 47.2, p. 268; Our Business, p. 180 | ||||||
| 87 |
Purchases from related parties (% of costs)
|
FY26: ₹0.10 cr (0.15% of raw material cost: NR Hy Tech ₹0.05 cr, Hy Tech Fluid Power ₹0.05 cr); FY25: ₹0.26 cr (0.43%); FY24: ₹0.15 cr (0.29%). Negligible related party procurement (<0.5%).
Multi-Period Trend Breakdown
|
OK | Note 47.2, p. 268 | ||||||
| 88 |
Loans / advances to promoter or related entities
|
Nil loans given to promoters or group entities. In fact, Promoters provided unsecured loans to the company (₹4.00 cr), which were fully repaid by the company during FY26. Outstanding loan balance is ₹0.00 as of March 31, 2026.
|
OK | Note 47.2 & 47.3, p. 268-269 | ||||||
| 89 |
Rent / royalty / brand fees paid to related parties
|
Nil brand royalty or trademark fee paid to promoters. Export commission paid to Hy-Tech USA Inc for North American distributor servicing: FY26: ₹1.86 cr (₹18.57M), FY25: ₹1.71 cr (₹17.05M), FY24: ₹1.41 cr (₹14.07M).
Multi-Period Trend Breakdown
|
Watch | Note 47.2, p. 268; Our Business, p. 180 | ||||||
| 90 |
Outstanding RPT balances (receivable / payable)
|
As of March 31, 2026: Trade Receivables from related parties = ₹2.49 cr (primarily Hy-Tech USA Inc ₹2.40 cr); Payables = ₹0.98 cr (commission payable to Hy-Tech USA ₹0.90 cr, group trade payables ₹0.08 cr); KMP remuneration payable = ₹0.15 cr.
|
OK | Note 47.3, p. 269 | ||||||
| 91 |
RPT trend over 3 years
|
RPTs have remained steady in proportion to business scale: Sales to Hy-Tech USA grew moderately from ₹5.44 cr (FY24) to ₹6.71 cr (FY26) in tandem with US export growth; promoter loans were completely paid off in FY26.
Multi-Period Trend Breakdown
|
OK | Note 47.2 & 47.3, p. 268-269 | ||||||
| 92 |
Disclosed at arm's length? Pricing basis?
|
All related party transactions are disclosed as conducted in the ordinary course of business and on an arm's length basis, supported by audit committee review and Transfer Pricing documentation.
|
OK | Note 47, p. 268; Summary of Related Party Transactions, p. 66 | ||||||
| 93 |
Overall RPT concern level (Low / Medium / High)
|
Low. RPTs are transparent, commercial, and non-extractive. Promoter loans were repaid, purchases are <0.5%, and Hy-Tech USA serves as a genuine US distribution channel accounting for <4% of revenue.
|
OK | Synthesized from Note 47, p. 268-270; Our Business, p. 180 |
Litigation, Tax Disputes & Materiality Sizing
Outstanding legal proceedings represent standard commercial and tax disputes with low aggregate materiality relative to net worth.
Outstanding Legal & Tax Dispute Summary
| Litigation / Regulatory Category | Case Count | Quantifiable Exposure | Materiality & Balance Sheet Risk |
|---|---|---|---|
| Indirect Tax Proceedings (GST Show Cause) | 1 | ₹1.27 Cr | Evaluated |
| Direct Tax Proceedings against Director | 1 | ₹0.24 Cr | Evaluated |
| Labour Court Wage Registers Notices | 1 | ₹0.00 Cr | Evaluated |
| Criminal & Commercial Litigation | 1 | ₹0.00 Cr | Evaluated |
| Statutory Audit Opinion & IFCoFR | 1 | ₹0.00 Cr | Evaluated |
| # | Checkpoint | Your Finding (Prospectus Data) | Status | Page Ref |
|---|---|---|---|---|
| 94 |
Criminal cases against promoters / directors
|
Nil criminal cases against Company or Promoters. 1 historical case involving Director Sunil Sathe (arising from past role as CGM of TJSB Sahakari Bank in a 2014 loan recovery complaint; dismissed by CJM Thane in 2018, criminal revision application pending).
|
OK | Outstanding Litigation, p. 314 |
| 95 |
Material civil / commercial cases - company
|
Nil material civil/commercial cases pending against the Company exceeding the materiality threshold (₹8.97M). Note: Post-DRHP claim by Fedex Securities Pvt Ltd disclosed in Risk Factor #42.
|
OK | Outstanding Litigation, p. 313-314; Risk Factor #42, p. 43 |
| 96 |
Direct + indirect tax disputes and amounts
|
Indirect Tax: 2 matters totaling ₹1.27 cr (₹12.72M), primarily a GST show cause notice dated May 14, 2026 for ₹1.27 cr (₹12.69M) for FY23 GSTR-1 vs 3B and 3B vs 2A mismatch. Direct Tax: 1 case against Director for ₹0.24 cr (₹2.35M).
|
OK | Outstanding Litigation - Tax Proceedings, p. 316 |
| 97 |
Regulatory / statutory actions (SEBI, RBI, environmental, labour)
|
Nil SEBI/RBI or environmental actions. 2 minor labour court complaints by Govt Labour Officer Thane against Promoter Hemant Mondkar & Fasto Engineering under Minimum Wages Act and Payment of Wages Act regarding wage registers/notices.
|
OK | Outstanding Litigation, p. 315 |
| 98 |
Total quantifiable amount involved
|
Total quantifiable exposure across Company and Director tax disputes = ₹1.51 cr (₹15.07 million: Company GST ₹12.72M + Director Direct Tax ₹2.35M).
|
OK | Outstanding Litigation, p. 316 |
| 99 |
Materiality vs PAT and net worth
|
Total quantifiable exposure of ₹1.51 cr represents 6.67% of FY26 PAT (₹22.59 cr) and 1.24% of FY26 Net Worth (₹122.02 cr). Highly manageable and poses zero solvency threat.
|
OK | Outstanding Litigation, p. 313-316; Restated Financials, p. 224-226 |
| 100 |
Any case threatening a key licence or the business model?
|
No. None of the pending tax, labour, or legal proceedings threaten manufacturing licenses, MIDC factory leases, operating approvals, or the core business model.
|
OK | Outstanding Litigation, p. 313-318; Government Approvals, p. 318 |
Valuation: Peer Comparison & Multiples Benchmark
Valuation benchmark indicates competitive pricing relative to listed industry peers and forward earnings power.
Listed Industry Peer Valuation Benchmark
| Company Name / Peer Benchmark | P/E (x) | EV/EBITDA | P/S (x) | ROE (%) | ROCE (%) | YoY Growth | PAT Margin |
|---|---|---|---|---|---|---|---|
| Hy-Tech Engineers Limited (Upper Band) | 22.3x | 11.2x | - | - | 24.4% | - | - |
| Aeroflex Industries Limited | 107.0x | 55.2x | - | - | 19.2% | - | - |
| Dynamatic Technologies Limited | 133.0x | 62.4x | - | - | 9.5% | - | - |
| Yuken India Limited | 82.0x | 22.1x | - | - | 7.2% | - | - |
| Industry Peer Composite | 107.3x | 46.6x | - | - | 12.0% | - | - |
| # | Checkpoint | Your Finding (Prospectus Data) | Status | Page Ref |
|---|---|---|---|---|
| 101 |
IPO P/E (post-issue, upper band)
|
Post-Issue P/E = 22.25x at Offer Price of ₹53 (based on FY26 post-issue diluted EPS of ₹2.38 on 9.49 cr shares; or 19.63x on FY26 pre-issue EPS of ₹2.70).
|
OK | Basis for Offer Price, p. 111-113; Capital Structure, p. 74; Anchor Report |
| 102 |
Peer P/E - and is the peer set fair or cherry-picked?
|
Listed Peer P/E: Aeroflex Industries 107.04x, Dynamatic Technologies 133.00x, Yuken India 82.00x (Peer Average: 107.35x). While Dynamatic and Aeroflex enjoy aerospace/flexible hose scarcity premiums, Yuken (82.0x) is a direct hydraulics peer. Hy-Tech's 22.3x P/E is at a steep 73-83% discount to all three peers.
|
OK | Basis for Offer Price - Peer Comparison, p. 113 |
| 103 |
EV / EBITDA vs peers
|
Hy-Tech Post-Issue EV/EBITDA = ~11.21x (EV ₹467.5 cr / FY26 EBITDA ₹41.69 cr; Pre-issue EV/EBITDA = 12.41x). Peer EV/EBITDA multiples trade between 20x to 65x (Aeroflex ~55x, Dynamatic ~60x+, Yuken ~22x).
|
OK | Basis for Offer Price, p. 116; Restated Financials, p. 224-226 |
| 104 |
Price / Sales (especially if loss-making)
|
Post-Issue Price / Sales = 2.65x (Post-issue MCap ₹502.72 cr / FY26 Revenue from Operations ₹189.40 cr). Company is solidly profitable (11.7% PAT margin), making P/S a secondary metric.
|
OK | Basis for Offer Price, p. 116; Restated Financials, p. 226 |
| 105 |
Price / Book
|
Pre-Issue P/B = 3.63x (₹53 / NAV ₹14.61); Post-Issue P/B = ~2.92x (₹53 / post-issue NAV ~₹18.14). Attractive vs Aeroflex P/B (13.5x) and Dynamatic P/B (9.4x).
|
OK | Basis for Offer Price, p. 113, 116; Other Financial Information, p. 276 |
| 106 |
Implied market cap at IPO
|
Implied Market Capitalization at IPO: ₹502.72 cr (94,852,594 post-issue equity shares @ ₹53 per share).
|
OK | Cover Page, p. 1; Capital Structure, p. 74; Anchor Report |
| 107 |
ROE vs peers
|
Hy-Tech FY26 ROE = 20.24% vs Peer ROEs: Aeroflex 14.06%, Dynamatic Technologies 7.89%, Yuken India 4.27%. Hy-Tech delivers higher ROE than all three listed peers despite trading at a fraction of their multiple.
|
OK | Basis for Offer Price - KPI Comparison, p. 116 |
| 108 |
ROCE vs peers
|
Hy-Tech FY26 ROCE = 24.40% vs Peer ROCEs: Aeroflex 19.15%, Dynamatic Technologies 9.54%, Yuken India 7.21%. Hy-Tech leads the entire peer set in capital productivity.
|
OK | Basis for Offer Price, p. 116 |
| 109 |
Growth vs peers
|
Hy-Tech 2-yr Revenue CAGR (FY24-26) = 17.28% and PAT CAGR = 39.58%. Peers: Aeroflex Rev CAGR 17.9% / PAT CAGR 15.3%; Dynamatic Rev CAGR 6.5% / PAT CAGR -30.0%; Yuken Rev CAGR 4.6% / PAT CAGR -12.5%. Hy-Tech PAT growth significantly outperforms.
|
OK | Basis for Offer Price, p. 116 |
| 110 |
Margins vs peers
|
Hy-Tech FY26 EBITDA Margin = 22.01% (vs Aeroflex 22.50%, Dynamatic 11.27%, Yuken 10.93%); Hy-Tech PAT Margin = 11.68% (vs Aeroflex 12.53%, Dynamatic 3.61%, Yuken 3.09%). Hy-Tech margins match market leader Aeroflex and double Dynamatic/Yuken.
|
OK | Basis for Offer Price, p. 116 |
| 111 |
IPO price vs WACA / pre-IPO placement (the markup)
|
Secondary transaction WACA in last 3 years = ₹15.12 (IPO price ₹53 is 3.51x markup). Promoters' historical cost is ₹0.12 - ₹0.22/sh. Last secondary transfer in July 2026 was at ₹18.00/sh.
|
Watch | Cover Page, p. 1; Capital Structure, p. 93-94; Basis for Offer Price, p. 117-118 |
| 112 |
Is the premium justified by ROCE / ROE / growth / margins?
|
Yes. Hy-Tech is priced at 22.25x post-issue P/E while generating 24.40% ROCE, 20.24% ROE, 22.01% EBITDA margin, and 1.23x cumulative CFO/PAT conversion. The modest 3.5x markup over unlisted transfer WACA (₹15.12) is strongly supported by high return ratios and superior growth vs peers.
|
OK | Synthesized from Basis for Offer Price, p. 113-116; Restated Financials, p. 224-228 |
| 113 |
What growth does the price implicitly assume?
|
At 22.25x P/E with a post-issue D/E of ~0.10x post-debt repayment, the price implicitly assumes moderate earnings growth of 12-15% CAGR, which is well below the historical 39.6% PAT CAGR and easily achievable with 41-83% capacity expansion at Shirwal, Kavathe, and Pithampur.
|
OK | Synthesized from Objects, p. 98-103; Basis for Offer Price, p. 116 |
In The Company's Own Words: Stated Risk Admissions
Management highlights key operational sensitivities including raw material pricing, client concentration, and execution timelines.
| # | Checkpoint | Your Finding (Prospectus Data) | Status | Page Ref |
|---|---|---|---|---|
| 114 |
Top 5 risk factors the company itself lists
|
(1) Customer concentration: Top 10 customers contributed 45.32% (FY26) and 48.72% (FY24) of revenue; (2) Export concentration: 29.37% of revenue from exports (USA 21.42%), exposed to trade tariffs and forex; (3) Supplier concentration: Top 10 suppliers account for 65.61% of raw material purchases; (4) Lack of long-term customer contracts (order-by-order purchase orders); (5) Sectoral dependency on construction (22.9%) and agriculture machinery (22.8%).
|
OK | Risk Factors #1, #2, #3, #4, #8, p. 17-24 |
| 115 |
Any genuine dealbreaker buried in boilerplate?
|
No structural dealbreaker. Key operational risks to track: (i) 100% of capex machinery orders (₹28.54 cr) unplaced as of RHP date (RF #10); (ii) Leased properties for corporate office and several units (RF #20); (iii) Promoter group entity Hy-Tech USA operates in similar business line / exclusive US distributor (RF #14). None constitute existential dealbreakers.
|
OK | Risk Factors #10, #14, #19, #20, p. 25, 27, 30, 31 |
| 116 |
Quantified risks (e.g. 'X would cut revenue by Y%')
|
Quantified exposures: (i) Top 10 customer revenue: ₹85.84 cr (45.32% in FY26); (ii) Top 10 supplier purchases: ₹44.38 cr (65.61% in FY26); (iii) Unplaced machinery orders: ₹28.54 cr (100% of capex); (iv) Leased property count: 4 out of 6 units on lease; (v) Pending indirect tax demand: ₹1.27 cr.
|
OK | Risk Factors #1, #6, #10, #20, #27, p. 17, 22, 25, 31, 35 |
| 117 |
Going-concern or liquidity language anywhere?
|
No going-concern qualification, liquidity warnings, or debt default language anywhere in the RHP or Auditor's Report. Company generated ₹30.33 cr CFO in FY26 and has positive net cash post-IPO.
|
OK | Auditor's Report, p. 222-224; Restated Financials, p. 224-228; MD&A, p. 278 |
Red-Flag Dashboard: 117-Checkpoint Audit Tally
This research report is prepared strictly for educational and informational purposes only and does not constitute financial, investment, legal, tax, or underwriting advice. Neither IPrOspecta nor the author (Tanish Vijayvargiya) is a SEBI-registered Research Analyst or SEBI-registered Investment Adviser under the SEBI (Research Analysts) Regulations, 2014 or SEBI (Investment Advisers) Regulations, 2013.
Nothing in this publication should be construed as an explicit or implicit recommendation, solicitation, endorsement, or offer to buy, sell, subscribe to, or hold any security, IPO application, or financial product. Prospective investors must conduct their own independent due diligence, carefully review the complete Red Herring Prospectus (RHP) / Draft Red Herring Prospectus (DRHP) filed with SEBI and the stock exchanges, and consult a qualified, SEBI-registered financial adviser before committing capital.
Position Disclosure: The author and IPrOspecta maintain zero commercial affiliation with the issuer company, book running lead managers, selling shareholders, or syndicate underwriters. All opinions expressed represent personal analytical frameworks.