Swastika Castal IPO Review

Swastika Castal has been a pioneer in the aluminium casting industry, setting new benchmarks in precision, quality, and innovation. What began as a visionary endeavor has grown into a state-of-the-art manufacturing facility in Gujarat, India, catering to both domestic and international markets.

Varun Sharda and Indra Sharda, as promoters of the company, bring a wealth of experience to the aluminum casting and manufacturing industry. Varun Sharda, with his 18 years of industry experience, has been instrumental in establishing the company as a respected market player through his leadership and vision.

The Revenues from operations for the Fiscals ended on Mar 31, 2025, 2024 and 2023 were ₹ 3,031.28 Lakh, ₹ 2,335.46 Lakh and ₹ 2,441.34 Lakh. The EBITDA for the Fiscals ended on Mar 31, 2025, 2024 and 2023 were ₹ 520.62 Lakh, ₹ 256.51 Lakh and ₹ 240.64 Lakh. The Profit after Tax for the Fiscals ended on Mar 31, 2025, 2024 and 2023 were were ₹ 263.49 Lakh, ₹ 64.98 Lakh and ₹ 58.47 Lakh respectively. This indicates a steady growth in financial performance.

The Company Key Performance Indicates the pre-issue EPS of ₹ 4.39 and post-issue EPS of ₹ 3.32 for FY24. The pre-issue P/E ratio is 14.80x, while the post-issue P/E ratio is 20.14x against the Industry P/E ratio is 23x. The company's ROCE for FY24 is 32.74%, ROE for FY24 is 28.17% and RoNW is 24.70%. These metrics suggest that the IPO is fairly priced.

The Grey Market Premium (GMP) of Swastika Castal showing listing gains of 0.00 %.Given the company's financial performance and the valuation of the IPO, we recommend Investors to Avoid to the Swastika Castal Limited IPO for Listing gain.

Disclaimer: The information provided in this IPO review is for educational and informational purposes only and should not be construed as financial advice or an offer to buy or sell securities. The review must not be used as a singular basis of any investment decision. The views herein are of a general nature and do not consider the risk appetite or the particular circumstances of an individual investor; readers are requested to take professional advice before investing. Nothing in this document should be construed as investment advice. The content is based on publicly available information and market perceptions as of the date of publication and is subject to change. Neither the author nor the website is responsible for any losses or damages arising from the use of this information. 1.“Registration granted by SEBI, membership of a SEBI recognized supervisory body (if any) and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.” 2. “Investment in securities market are subject to market risks. Read all the related documents carefully before investing.” 3. To read the Disclaimers, Disclosures, Investor Charter, Investor Complaints please visit our website abhayvarn.com

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.