Poojaa Precision

Founded in August 1992, Poojaa Precision Engg. Limited has evolved into a sophisticated player in the precision engineering landscape. The company leverages integrated capabilities in gravity die casting (GDC), low-pressure die casting (LPDC), and high-pressure die casting (HPDC), alongside advanced machining and assembly services to deliver over 600 distinct products.

The business model is centered on providing safety-critical components for a diverse range of high-growth industries. Their expertise extends across the automotive spectrum, including commercial and passenger vehicles, two-wheelers, and the rapidly expanding Electric Vehicle (EV) powertrain market, as well as specialized needs for agriculture, defense, energy, and healthcare.

Operationally, the company maintains a robust manufacturing facility equipped with melting units, casting lines, and quality assurance infrastructure. This allows them to serve a global clientele, with major Original Equipment Manufacturers (OEMs) and international customers located in Germany, the United States, Italy, and Switzerland.

The company's scale is reflected in its ability to manage complex engineering services and high-precision machining. By catering to diverse sectors like aerospace and engineering goods, they have effectively diversified their revenue streams and mitigated industry-specific volatility.

The promoter group consists of Anil Shivajirao Kulkarni, Jayshree Anil Kulkarni, Sanket Anil Kulkarni, Rahul Sohanlal Ranka, and others, including Bhavya Financial Services Pvt. Ltd., who have steered the company from a local engineering firm to an export-oriented precision component manufacturer.

Poojaa Precision is launching a book-built IPO to raise approximately ₹159.83 crore, consisting entirely of a fresh issue. The price band is set between ₹285 and ₹301 per share, with a minimum lot size of 800 shares requiring an application amount of ₹2,40,800. The issue opened on July 28, 2026, and closed on July 30, 2026, with listing on the BSE SME platform on August 4, 2026.

The proceeds from the fresh issue are strategically allocated toward growth, with ₹106.34 crore dedicated to funding capital expenditure for a new manufacturing facility and ₹30.00 crore earmarked for meeting working capital requirements. This indicates a focus on expanding operational capacity rather than promoter exits.

Financial performance shows a strong upward trajectory. Revenue grew from ₹174.59 crore in FY24 to ₹295.20 crore in FY26. Similarly, Profit After Tax (PAT) increased from ₹16.10 crore in FY24 to ₹30.90 crore in FY26, demonstrating consistent profitability and scaling efficiency.

From a valuation perspective, the company boasts a strong Return on Equity (ROE) of 28.18% and a Return on Capital Employed (ROCE) of 26.38% for FY26. While the P/E ratio is not explicitly provided, the Basic EPS stands at ₹21.90. Comparison with peers like Alicon Castalloy and Endurance Technologies suggests the company is operating in a high-multiple sector.

Key investment strengths include the 100% fresh issue structure, low debt-to-equity ratio of 0.31, and a diversified international customer base. The absence of an Offer for Sale (OFS) indicates strong promoter confidence in the future growth of the business.

Potential risks include the concentration of business in the automotive sector and the challenges associated with scaling manufacturing facilities. Investors should view this as a growth-oriented SME play with strong fundamentals, though liquidity in the SME segment can be lower than in mainboard listings.