SJP Ultrasonics SME IPO

Strengths · 7

• 01Margins are high for an engineering business, with a PAT margin of 19.81% and an EBITDA margin of 32.47%.
• 02Revenue has grown every year, from Rs 15.22 crore in FY2024 to Rs 21.15 crore in FY2025 and Rs 26.63 crore in FY2026.
• 03Profit after tax has grown from Rs 3.40 crore in FY2024 to Rs 4.17 crore in FY2025 and Rs 5.24 crore in FY2026.
• 04Return on capital employed is 50.80% and return on net worth is 28.10%.
• 05Debt is very low at Rs 5.78 crore against a net worth of Rs 20.09 crore, a debt to equity ratio of 0.16.
• 06Most of the money goes into the business. Rs 13.22 crore of the Rs 23.45 crore issue buys machinery and Rs 4.92 crore funds working capital, and the whole issue is fresh capital with no offer for sale.
• 07It sells into many industries beyond automotive, including medical, electrical, electronics, textile, FMCG, packaging and defence, which spreads demand.

Risks · 11

• 01Return on equity is shown as 38.86% while return on net worth is shown as 28.10% for the same year, so the two published figures do not agree.
• 02The reserves row does not fit the rest of the table, falling from Rs 5.63 crore in FY2024 to Rs 5.41 crore in FY2025 while net worth more than doubled from Rs 6.73 crore to Rs 14.85 crore.
• 03Rs 3.16 crore of the Rs 23.45 crore issue goes on issue expenses, about 13% of the money raised.
• 04The issue is priced at 16.54 times post issue earnings on an EPS of Rs 4.05, against 12.07 times on a pre issue EPS of Rs 5.55.
• 05The company is small, with revenue of Rs 26.63 crore, a net worth of Rs 20.09 crore and 84 employees.
• 06All manufacturing is at one industrial unit at Vasai East in Palghar, so any disruption there stops production.
• 07The main market is automotive component manufacturing, where a slowdown in vehicle production feeds straight through to orders for welding and automation equipment.
• 08Capital equipment orders are lumpy. Customers defer machine purchases when their own demand is uncertain, so revenue can move sharply quarter to quarter.
• 09Borrowing rose from Rs 2.41 crore in FY2025 to Rs 5.78 crore in FY2026 even though it remains low.
• 10This is a fixed price issue at Rs 67 per share, so there is no price discovery through bidding, and promoter holding falls from 79.51% to 58%.
• 11This is an SME issue. One lot is 2,000 shares, which is about Rs 1.34 lakh at the upper band of Rs 67, and SME shares usually trade in low volume after listing.

SJP Ultrasonics Limited was incorporated in 2012 and provides end-to-end plastic joining and automation solutions.

Its work falls into three parts: plastic joining solutions, industrial automation, and laser technology solutions. Customers are manufacturers, so the business is entirely business to business. The automotive industry is the main market, with further sales to medical, electrical, electronics, textile, FMCG, toys, gift and stationery, food and packaging, defence and educational customers.

The manufacturing unit is at the Shiv Shankar Industrial Complex 2 at Bhutpada, Vasai East, in Palghar district of Maharashtra. The issue money is being used to add machines in house, including milling machines, a CNC lathe, a CNC bandsaw, an overhead crane, a six-axis robot, a CO2 laser cutting unit, a CMM machine, vibration welders and a laser plastic welder, along with design software. As on 31 March 2026 the company had 84 employees.

Interested in this IPO? Check the live subscription status or browse all upcoming SME IPOs.