Gala Precision Engineering IPO Review

Gala Precision Engineering specializes in design and manufacturing of precision components like High Tensile Fasteners, Disc & Strip Springs, Coil & Spiral Springs, and Wedge Lock Washers. Their primary clientele consists of major OEMs, Tier-1 & Channel Partners, spanning diverse industries including Renewable Energy, Industrial and Mobility.

The Company is led by the Promoter, Chairman and Managing Director, Kirit Vishanji Gala who has helped expand their operations within India and globally and has been associated with their Company since incorporation. Kirit Vishanji Gala has more than three decades of experience in engineering and manufacturing activities.

Financially, Gala Precision Engineering revenue increased from ₹1,367.35 Millions in FY22 to ₹1,493.84 Millions in FY23 and currently at ₹1,767.90 Millions in FY24. Similarly, EBITDA is increased from ₹1,479.63 Millions in FY22 to ₹1,670.82 Millions in FY23 and currently at ₹2043.77 Millions in FY24. The PAT also increased from ₹66.31 Millions in FY22 to ₹225.63 Millions in FY23 and currently at ₹225.32 Millions in FY24. This indicates a steady financial performance.

For the Gala Precision Engineering IPO, the company is issuing shares at a pre-issue EPS of ₹22.28 and a post-issue EPS of ₹17.78. The pre-issue P/E ratio is 23.74x, while the post-issue P/E ratio is 29.75x against Industry P/E ratio is 31.70x. The company's ROCE for FY24 is 19.91% and ROE for FY24 is 23.59%. These metrics suggest that the IPO is fairly priced.

The Grey Market Premium (GMP) of Gala Precision Engineering potential listing gains of 47% - 50%. Given the company's financial performance and the valuation of the IPO, we recommend only Investors to Apply to the Gala Precision Engineering Limited IPO for Listing gain or long term investment purposes.