Advance Technoforge Limited

Advance Technoforge Limited is primarily engaged in the manufacturing of forged steel machined components using Carbon Steel, Alloy Steel, and Stainless Steel. The company specializes in Closed Die Forging, Upset Forging, and Ring Rolling Forging, delivering products in both rough and precision-machined conditions. Its core value proposition lies in its integrated manufacturing capabilities, providing high-quality, custom-engineered components tailored to meet specific customer designs and internationally recognized standards. The company operates on a B2B model, supplying its robust product portfolio to diverse end-use industries, including automotive, general engineering, oil and gas, earth-moving, and heavy machinery sectors. While the domestic market in India contributed 71.35% of its total revenue from operations in FY26, the company also boasts a growing international footprint, with exports to countries like Croatia, Germany, Finland, and the USA accounting for the remaining 28.65% of its revenue. Advance Technoforge operates out of Rajkot, Gujarat, utilizing two distinct facilities to drive its production. Unit 1 is an owned property located at Padavala Road, while Unit 2 is a leased facility situated nearby. Together, these facilities maintain an installed production capacity of 6,000 Metric Tonnes Per Annum (MTPA) for ferrous metals. In terms of capacity utilization, the company recorded a utilization rate of 50.00% in FY24, 46.90% in FY25, and 50.50% in FY26, producing 3,030 MTPA in the latest fiscal year. To ensure defect-free output and strict adherence to technical specifications, the company has implemented a rigorous quality assurance mechanism. Its in-house testing laboratory is equipped with advanced metrology devices such as Coordinate Measuring Machines (CMM), digital height gauges, and contour inspection tools for mechanical and metallurgical testing. The facilities hold prestigious certifications, including ISO 9001:2015, IATF 16949:2016, and ZED Gold. Looking ahead, the company is expanding its infrastructure to install an additional 600 MTPA capacity for machined forging and casting of aluminum metal, primarily targeting the burgeoning Electric Vehicle (EV) segment. As per financial performance, Advance Technoforge Limited has posted total income / net profits of Rs 48.24 Cr / Rs 1.70 Cr (FY24), Rs 51.16 Cr / Rs 2.70 Cr (FY25) and Rs 50.73 Cr / Rs 4.06 Cr (FY26). So as per previous financials data, the company has shown a relatively stagnant top-line with a slight revenue decline in FY26, but has delivered an exceptional surge in bottom-line profitability driven by raw material cost optimization, alongside a moderate reduction in its debt-to-equity ratio from 1.62x in FY24 to 1.29x in FY26. Company has an average EPS of Rs 4.94 and average RoNW of 28.67% for the last three fiscals. Based on the pre-issue book value, the issue is priced at a Pre-Issue P/BV of 4.61x as per NAV of Rs 20.59 as on 31.03.26. Factoring in the fresh issue proceeds, the Post-Issue P/BV stands at 2.27x. If we attribute the latest earnings of FY24, FY25, and FY26 to the expanded equity base post-issue, then the asking price is at a Post-Issue P/E of around 50.26x, 31.77x, and 21.16x respectively. As per RHP, a comparison between listed peers shows the company is priced moderately between Forge Auto International Limited (P/E 9.39x) and Tirupati Forge Limited (P/E 93.56x), but justifies its valuation through a vastly superior RoNW of 30.33% compared to its peers. On BRLM's front, Sun Capital Advisory Services Private Limited are associated with this IPO, and Sun Capital Advisory Services Private Limited has handled 5 IPOs in the last three fiscal years. (as on 22.07.26) As per financials, Advance Technoforge Limited has shown flat revenue growth offset by explosive profit margin expansion, RoNW is 30.33% and the Post-Issue P/E is 50.26x, 31.77x, and 21.16x respectively as per FY24, FY25, and FY26 earnings. So the issue looks fully priced. The company is a precision-engineering manufacturing enterprise offering products starting from Retainer Plates to Valve Bonnets. So, we give a NEUTRAL rating for this IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.

• 1 Nilesh Shambhubhai Moliya
• 2  Pradipbhai Bhikhabhai Vora
• 3  Daxaben Nileshbhai Moliya
• 4 Kajal Alpeshbhai Moliya
• 5 Shraddhaben Pradipbhai Vora