INDO SMC Limited

INDO SMC Limited is an ISO 9001:2015 certified company mainly engaged in the design and manufacturing of enclosure box for energy meters, high tension current transformer ('HTCT'), high tension potential transformer ('HTPT'), low tension current transformer ('LTCT'), LT/HT distribution boxes and panels, fiberglass reinforced plastic ('FRP') Grating, junction boxes, feeder pillars and other power distribution and circuit protection switch gears. The products are crafted from materials such as sheet moulding compounds ('SMC'), fiberglass reinforced plastic ('FRP'), copper, mild steel and stainless steel, etc. The business primarily comprises of (i) sheet moulding compound division, under which they manufacture enclosure box for energy meters, SMC sheet and SMC chequered plates, (ii) fiberglass reinforced plastic in which they manufacture grating plates and (iii) electrical component division where they manufacture HTCT, HTPT,LTCT, feeder pillars and other power distribution and circuit protection switch gears. In FRP, products such as FRP pultruded products, FRP moulded gratings and FRP storage tanks, these products are customized to a variety of industrial applications.  Company currently operates through four manufacturing facility, located at Gujarat, Maharashtra and Rajasthan. The manufacturing facility at Ahmedabad where they manufacture SMC and FRP products. As per financial performance, INDO SMC Limited has posted total income / net profits of Rs 7.29 / 0.45 Cr (FY23), Rs 28.05 / Rs 3 Cr (FY24), Rs 138.77 Cr / 15.44 Cr (FY25) and Rs 112.61 Cr / 11.45 Cr (upto Q2 FY26). So as per previous financials data, company has shown exceptional growth. But operating cash flow of company is negative and trade receivables is around 34% for FY25 total sales. Also production capacity and utilisation not matches the revenue increase. As on November 30, 2025, company has an order book of Rs 28,319.25 lakhs, out which they have completed the projects and booked Revenue of Rs 17,152.75 lakhs till November 30, 2025 and out of that they have realized Rs 10,026.38 lakhs. Company has an average EPS of Rs 5.59 and average RoNW of 45.39% for last three fiscals. Issue is priced at a P/BV of 5.27 as per NAV of Rs 28.25/- as on 30.09.25. If we attribute latest earnings of FY24, FY25 and annualised FY26 on equity post issue, then asking price is at a P/E of around 113.38, 22.05 and 14.86 respectively. As per RHP, comparison between listed peers is shown in above table. On BRLM's front, GYR Capital Advisors Private Limited is associated with this IPOs, and has handled 54 IPOs in last three fiscal years. From last 10 IPOs, all opened above issue price or at par, on the day of listing. As of now, from last 10 IPOs, three are trading below issue price and remaining all are trading above issue price or at par. (as on 07.01.26 ) As per financials, INDO SMC Limited has shown exceptional growth, RoNW is 43.27% and P/E is 113.38, 22.05 and 14.86 respectively as per FY24, FY25 and annualised FY26 earnings. So issue looks fully priced, but negative cash-flow and high trade receivables raises concerns. Company is engaged in the design and manufacturing of enclosure box for power distribution, which is very competitive business segment. Performance of BRLM is good post listing. So, we give NEUTRAL rating for this IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.

• 1 Mr. Nitin Jasvantbhai Patel
• 2 Mr. Neel Niteshbhai Shah
• 3 Mr. Chaitanya Patel
• 4 Mrs. Riktaben Pranay Sonawala
• 5 Mr. Rachit Jain