Kheria Autocomp SME IPO

Strengths · 8

• 01Profit has more than tripled in two years, from Rs 3.31 crore in FY2024 to Rs 8.24 crore in FY2025 and Rs 11.42 crore in FY2026.
• 02Sales have almost doubled over the same period, from Rs 62.40 crore to Rs 120.30 crore.
• 03EBITDA has more than doubled, from Rs 9.76 crore in FY2024 to Rs 22.90 crore in FY2026.
• 04Return ratios are strong, with RoNW of 33.72% and RoCE of 26.89%, and a PAT margin of 9.52%.
• 05The issue is priced moderately at about 14.01 times earnings on an EPS of Rs 7.21.
• 06Being located inside the Tata Vendor Park at Sanand puts it right next to its customer base, which cuts logistics cost and helps with just-in-time supply.
• 07It supplies parts for both petrol and electric vehicles, so the shift to EVs does not make its products redundant.
• 08The plant is well equipped with 30 injection moulding machines from 120 to 1,700 tons, and a 636 kW solar system reduces the power bill.

Risks · 9

• 01Being a Tier-II supplier means it sells to Tier-I vendors rather than to the vehicle makers, so it sits one step further from the customer and has less say on price.
• 02Having its plant inside the Tata Vendor Park is convenient but also means heavy dependence on one manufacturer ecosystem. Any change in that relationship would be serious.
• 03Almost the entire issue goes into one project. Rs 39.96 crore of the Rs 46.44 crore raised goes into a new facility at GIDC Sanand, which brings execution risk and a gap before it earns.
• 04Borrowing was Rs 35.03 crore against a net worth of Rs 39.52 crore, a debt to equity ratio of 0.89, and it has nearly doubled in two years.
• 05Demand follows the passenger vehicle cycle. A slowdown in car sales passes straight through to a component supplier.
• 06The raw material is polymer, which is linked to crude oil prices.
• 07The company is small, with about 113 employees and a single facility of roughly 3 acres.
• 08Promoter holding will come down from 100% to 70.99% after the issue.
• 09This is an SME issue. One lot is 1,200 shares, which is about Rs 1.21 lakh at the upper band of Rs 101, and SME shares usually trade in low volume after listing.

Kheria Autocomp Ltd was started in 2009. It is an auto ancillary company working in plastic injection moulding, which means it melts plastic granules and forms them into vehicle parts, and also carries out sub-assembly work on those parts.

It works as a Tier-II supplier. That means it does not sell to the car makers directly but supplies moulded components to Tier-I vendors, who then supply the original equipment manufacturers. Its parts go into passenger vehicles.

Its product range covers interior cabin trims, exterior plastic parts, under-hood components and heating, ventilation and air conditioning ducts, and it supplies these for both internal combustion engine vehicles and electric vehicles, so it is not tied to one type of powertrain. Its manufacturing facility is inside the Tata Vendor Park at Sanand in Gujarat, covering about 3 acres, with 30 injection moulding machines ranging from 120 tons to 1,700 tons of clamping force. The company has also put up a 636 kW solar power system and four groundwater recharge wells at the site. As on 31 March 2026 it had about 113 employees.

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