Patil Automation IPO Review

Patil Automation is an automation solutions provider serving industrial clients, primarily in the automotive sector. They are engaged in designing, manufacturing, testing and installation of customized automation systems such as welding lines (spot welding, MIG and TIG), assembly lines, material handling machineries and special-purpose machineries, tailored to meet the specific requirements of their clients' production facilities.

The company have an experienced management team led by the Directors and Promoters, including Manoj Pandurang Patil and Prafulla Pandurang Patil. Manoj Pandurang Patil, the Promoter and Managing Director, has over 25 years of experience in the automation industry and has been the driving force behind the Company's growth, playing a pivotal role in strategic decision-making and managing overall business operations.

The Revenues from operations for the period ended on Mar 31, 2025, Fiscals ended 2024, 2023 and 2022 were ₹  12,204.45 Lakh, ₹ 11,871.51 Lakh, ₹  8,235.46 Lakh and ₹ 9,709.33 Lakh respectively. The EBITDA for the period ended on Mar 31, 2025, Fiscals ended 2024, 2023 and 2022 were ₹  1,926.28 Lakh, ₹ 1,594.16 Lakh, ₹  925.65 Lakh, and ₹ 1,095.77 Lakh, respectively. The Profit after Tax for the period ended on Mar 31, 2025, Fiscals ended 2024, 2023 and 2022 were ₹  1,170.21 Lakh, ₹ 783.72 Lakh, ₹  419.84 Lakh, and ₹ 545.91 Lakh respectively. This indicates a steady growth in financial performance.

The Company Key Performance Indicates the pre-issue EPS of ₹ 7.62 and post-issue EPS of ₹ 5.36 for FY24. The pre-issue P/E ratio is 15.74x, while the post-issue P/E ratio is 22.38x. The company's ROCE for FY24 is 21.62%, ROE for FY24 is 27.28% and RoNW is 21.80%. These metrics suggest that the IPO is fairly priced.

The Grey Market Premium (GMP) of Patil Automation showing listing gains of 12.50 %. Given the company's financial performance and the valuation of the IPO, we recommend  Risky In vestors to Apply to the Patil Automation Limited IPO for Listing gain.

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About the Author
CA Abhay Kumar (Also known as  CA Abhay Varn) is a qualified Chartered Accountant by profession and cleared CA at age 21. He is a SEBI Registered Research Analyst with Registration Number - INH300008465. He Possesses 8+ years of experience in the Stock Market Field and has also worked in Big CA firms.