CFF Fluid Control Ltd was established to deliver cutting-edge technology and engineering solutions to India’s defence sector.

Notably:
✅ Signed a Technology Transfer (TOT) agreement with Coyard SAS France early on.
✅ Supplies fluid control and mechanical equipment for the Indian Navy's submarine programme.

Their core focus on import substitution and high-spec engineering makes them a strategic player in India’s growing defence manufacturing ecosystem.

Promoter Background

• Mr. Sunil Menon and Mr. Gautam Makker

• 30+ years of business experience

• 20+ years in defence sector-related projects

They have driven the company’s growth with their deep industry knowledge and government contract experience.

IPO Details

Financial Performance (₹ in Lakhs)

✅ Consistent revenue growth ~33% CAGR
✅ EBITDA more than doubled in 3 years
✅ PAT grew ~2.4x over 3 years

Valuation Metrics

⚖️ The IPO is fairly priced relative to its sector, but premium valuation (~51x P/E) limits listing gain potential.

GMP & Listing Prospects

Note: No meaningful grey market activity indicates low demand for short-term flips.

Strengths

✅ Niche supplier to defence, a strategic sector with policy tailwinds
✅ Technology Transfer agreement with French OEM
✅ Strong 3-year revenue and profit CAGR
✅ Experienced promoter team with defence industry relationships

Risks & Concerns

⚠️ High issue price and valuation (51x P/E) limits upside
⚠️ Large minimum investment of ₹2.34 lakh (retail), limits access
⚠️ Dependent on defence contracts, which have long gestation and payment cycles
⚠️ SME listing can mean low liquidity post-listing

Expert Recommendation

Final Verdict

CFF Fluid Control IPO offers credible growth and a defence-sector moat with proven execution.

But at 51x P/E, it is expensive by SME IPO standards. With no grey market premium and a high retail ticket size, listing gain chances are minimal.

✅ Verdict: Avoid for listing gains.
⚖️ Long-term defence-focused investors may consider a small allocation if comfortable with risk.

Disclaimer:

This article is intended for informational and educational purposes only and does not constitute investment advice. Readers are advised to consult their financial advisor before making any investment decisions. Investments in securities are subject to market risks. Please read all related documents carefully before applying for the IPO. The data provided is based on publicly available information and may be subject to change.

The Upcoming IPOs in this week and coming weeks are Asston Pharmaceuticals, CFF Fluid Control, Smarten Power Systems, Glen Industries, Travel Food Services, Anthem Biosciences, Chemkart India.

The Current active IPO are Meta Infotech, Happy Square Outsourcing Services, Cryogenic OGS.

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