Kheria Autocomp

Established in 2009, Kheria Autocomp has evolved into a significant player in the auto ancillary space, specifically focusing on high-precision plastic injection moulding. The company operates as a Tier-II supplier, providing critical components to Tier-I companies which then supply the final original equipment manufacturers (OEMs).

Its product portfolio is diverse, catering to various vehicle segments. Key offerings include interior cabin trims, exterior plastic components, under-hood parts, and heating, ventilation, and air-conditioning (HVAC) ducts. Notably, the company has positioned itself to serve both traditional internal combustion engine (ICE) vehicles and the growing electric vehicle (EV) market.

Operationally, the company is headquartered in Gujarat with a manufacturing facility located in Sanand. This facility spans 3 acres and is equipped with 30 injection moulding machines ranging in capacity from 120 to 1,700 tons, allowing for a wide range of component sizes.

The business model relies on the scalability of the automotive sector and the ability to maintain quality standards required by Tier-I partners. By diversifying its product line across different vehicle types, the company mitigates the risk of a decline in any single automotive segment.

The company is led by its promoters, Tara Chand Kheria, Vinay Kheria, Sushma Kheria, and Santosh Devi Kheria, who have steered the firm's growth from a local unit to a professionalized corporate entity.

The Kheria Autocomp IPO is a book-built issue aimed at raising approximately ₹46.44 Crores. The entire proceeds are coming from a fresh issue of shares, with no Offer for Sale (OFS) component, indicating that the promoters are not offloading their stakes but rather raising capital for growth. The price band is set between ₹96 to ₹101 per share, with a minimum lot size of 2,400 shares requiring an investment of ₹2,42,400. The issue is scheduled to open on September 17, 2026, and close on September 21, 2026, with listing on the NSE SME platform on September 24, 2026.

The primary object of the issue is the utilization of ₹39.95 Crores for part funding of capital expenditure to set up a new manufacturing facility for plastic moulded auto components at the GIDC Sanand Industrial Park, with the remainder for general corporate purposes.

Financially, the company has shown impressive growth. Revenue increased from ₹62.40 Crores in FY24 to ₹92.31 Crores in FY25 and reached ₹120.30 Crores in FY26. Similarly, the Profit After Tax (PAT) surged from ₹3.31 Crores in FY24 to ₹11.42 Crores in FY26, demonstrating strong operational scaling and improving margins.

In terms of valuation, the company reports a high ROE of 33.72% and ROCE of 26.89%. While a specific P/E ratio is not explicitly listed for the IPO price, the basic EPS for FY26 stands at ₹10.15. Compared to peers like Machino Plastics and PPAP Automotive, Kheria shows competitive growth metrics.

Key investment strengths include the 100% fresh issue structure, strong profitability trends, and exposure to the EV segment. However, risks include the reliance on Tier-I suppliers and the inherent volatility of the automotive industry.

From a balanced perspective, the strong financial growth and capital infusion for expansion are positive indicators. However, the low institutional subscription (QIB 1.05x) suggests a cautious approach from professional investors, which may limit an aggressive listing pop.