Poojaa Precision Engg. IPO (28-30 July) Analysis

IPO Analysis | BSE SME | 100% Book Built Issue (Pure Fresh Issue) | Regulation 229(2) and 253(1)

Based on Red Herring Prospectus dated July 22, 2026 | Precision Engineering (Aluminium Die Casting and Machining for Automotive and EV) | Pune, Maharashtra

STATUS: LIVE RHP, ANCHOR BID JULY 27, 2026, BIDDING OPENS JULY 28 AND CLOSES JULY 30, 2026

Pure Fresh Issue of up to 53,10,000 Equity Shares | No Offer for Sale | BSE SME Platform

RoNW of 23.21% (FY26) is well above all 3 listed peers | Formerly Pooja Castings Pvt. Ltd., operating since 1992

 Poojaa Precision Engg. Limited was originally incorporated on August 12, 1992 as Pooja Castings Pvt. Ltd. It was renamed Poojaa Precision Engg. Private Limited in December 2025 and converted to a public limited company on December 12, 2025. Its CIN is U27310MH1992PLC068151, with its registered office at Gat No. 253/1A, Village Kharabwadi, Chakan, Pune.

The Promoters are Anil Shivajirao Kulkarni, Jayshree Anil Kulkarni, Sanket Anil Kulkarni, Rahul Sohanlal Ranka, Vaishali Dakshendra Agrawal, Dakshendra Brijballabh Agrawal, Bhavya Dakshendra Agrawal and Bhavya Financial Services Private Limited.

The Company is a precision engineering business manufacturing aluminium die casting and machining components for the automotive sector, including electric vehicle applications, as well as non-automotive sectors such as agriculture, defence, energy and healthcare. Its manufacturing facilities include melting units and casting lines supporting gravity die casting (GDC), low-pressure die casting (LPDC) and high-pressure die casting (HPDC), together with machining capability for component finishing.

The Company offers more than 600 SKUs as of this RHP, including certain safety-critical automotive and EV components, and positions itself as an integrated solutions provider spanning design, engineering, melting, casting, cleaning, machining and assembly.

Revenue from operations grew from Rs.17,372.22 Lakhs in Fiscal 2024 to Rs.29,385.54 Lakhs in Fiscal 2026, with PAT growing from Rs.1,609.65 Lakhs to Rs.3,090.28 Lakhs over the same period, a materially more mature and larger revenue base than several other companies in this series.

The Company is now expanding with a new manufacturing facility at Gat No. 382, 383, 386, 387 and 312, Village, Taluka Khed, Pune, financed in part by the Fresh Issue and partly already underway through bridge financing from State Bank of India and The Hongkong and Shanghai Banking Corporation Limited.

Key Basics

Particulars	Details
Document Type	Red Herring Prospectus (RHP) dated July 22, 2026. This is a live offer with an unusually compressed timeline: Anchor Investor Bid on Monday, July 27, 2026, Bid or Issue opens Tuesday, July 28, 2026 and closes Thursday, July 30, 2026.
Issue Structure	100% Book Built Issue, Pure Fresh Issue of up to 53,10,000 Equity Shares (no Offer for Sale at all), of which 2,66,000 shares are reserved for the Market Maker and 41,600 shares are reserved for Eligible Employees. Face value Rs.10 per share.
Face Value	Rs.10 per Equity Share.
Promoters	Anil Shivajirao Kulkarni, Jayshree Anil Kulkarni, Sanket Anil Kulkarni, Rahul Sohanlal Ranka, Vaishali Dakshendra Agrawal, Dakshendra Brijballabh Agrawal, Bhavya Dakshendra Agrawal and Bhavya Financial Services Private Limited.
Selling Shareholders	Not applicable. This Issue is entirely a Fresh Issue; there is no Offer for Sale and therefore no WACA disclosure for selling shareholders.
Eligibility Route	Regulation 229(2) and 253(1) of Chapter IX of the SEBI ICDR Regulations, 2018.
Listing Exchange	BSE SME Platform, with in principle approval dated June 23, 2026.
BRLM	Hem Securities Limited.
Registrar	MUFG Intime India Private Limited (formerly Link Intime India Private Limited).
Bid or Issue Dates	Anchor Bid: Monday, July 27, 2026. Opens: Tuesday, July 28, 2026. Closes: Thursday, July 30, 2026.
Listed Peers, One Line	3 listed peers, all larger and more established auto component manufacturers (Alicon Castalloy, RICO Auto Industries, Endurance Technologies), all with materially lower RoNW than the Company.

The most time-sensitive feature of this offer is its bidding window: with Anchor Bid on July 27 and the issue closing July 30, 2026, this is among the most imminent live offers in this report series, leaving only a very short window for prospective applicants to act. Structurally, this is also a pure Fresh Issue with no Offer for Sale, meaning all Net Proceeds (net of Issue expenses) will be retained by the Company rather than partly monetising existing shareholders.

How Will the IPO Money Be Used?

Object	Estimated Amount (Rs. Lakhs)	Substantiation
Capital expenditure for new manufacturing facility at Taluka Khed, Pune	10,633.59	Total facility cost Rs.11,043.08 Lakhs; Rs.2,284.41 Lakhs already deployed as of the RHP, certified by the Statutory Auditor. Advance payment and orders for machinery and installation, including a solar power generation system, have already been placed and financed via bridge term loans from State Bank of India and HSBC, to be repaid from Net Proceeds.
Working capital requirements	3,000.00	A specific rupee figure disclosed as a standalone Object, distinct from general corporate purposes; no further itemisation provided in the summary reviewed here.
General corporate purposes	[TBD]	Capped at 15% of Gross Proceeds or Rs.10 Crore, whichever is lower. No further breakdown provided, as is standard.

This is one of the better substantiated capital expenditure plans in this report series: unlike several peer companies where machinery orders had not yet been placed as of the RHP, here the Company has already placed orders and paid advances for machinery and installation, including a solar power generation system, funded through bridge financing that will be repaid from the Net Proceeds once raised.

The total facility cost is also backed by a Statutory Auditor certificate confirming the amount already deployed. The main residual uncertainty is the standard one for any RHP at this size: the Gross Proceeds, Net Proceeds and General Corporate Purposes figures remain undetermined until the Offer Price is fixed.

Financial Performance

P&L and Key Metrics (Rs. Lakhs unless stated)

Particulars	FY 2026	FY 2025	FY 2024
Revenue from operations	29,385.54	22,199.93	17,372.22
Total income	29,519.93	22,280.04	17,458.72
Profit after tax	3,090.28	2,393.08	1,609.65
PAT margin (%)	10.47	10.74	9.22
Basic and Diluted EPS (Rs.)	21.90	17.48	11.76
Return on net worth / RoNW (%)	23.21	27.76	24.83
Net worth	13,316.21	8,619.79	6,483.41
NAV per equity share (Rs.)	94.36	62.96	47.36

Balance Sheet and Cash Flow Highlights (Rs. Lakhs)

Particulars	FY 2026	FY 2025	FY 2024
Total assets	23,137.67	13,592.27	9,674.69
Total borrowings (long and short term)	4,115.87	1,953.54	1,428.05
Net cash from operating activities	2,379.80	1,587.37	1,626.81
Net cash used in investing activities	(5,734.55)	(1,597.07)	(1,459.41)
Net cash from / (used in) financing activities	3,376.97	13.38	(658.40)
Net increase / (decrease) in cash and cash equivalents	22.22	3.69	(491.01)

This is a larger and comparatively more mature business than most others in this series, with revenue growing at a steadier pace, roughly 27.8% in FY25 and a further 32.4% in FY26 (independently recomputed and reconciling with the RHP's disclosed figures), rather than the multi-hundred-percent single year jumps seen in some smaller SME peers in this report set. PAT margin has been broadly stable in the 9 to 11% range across all 3 years, and RoNW has stayed in a relatively tight 23 to 28% band, a more consistent profile than the wide swings seen in some newer companies in this series.

Cash flow shows a business that is operating cash generative in all 3 years but has stepped up capital expenditure sharply in FY 2026, with investing outflows nearly quadrupling to Rs.5,734.55 Lakhs (largely the new Pune facility build-out, including capital work in progress and advances), funded by a mix of increased borrowings and a fresh equity infusion (Rs.1,862.83 Lakhs of share capital proceeds in FY26).

The Company's own Risk Factors disclose negative net cash flows in certain past periods, consistent with a capital expenditure heavy manufacturing business rather than a standalone liquidity concern, though investors should note the trade receivables and inventory both grew materially in FY26 alongside revenue, which is a normal but worth-watching feature of the working capital cycle in a scaling manufacturer.

How Does It Compare to Peers?

Company	Total Income (Rs. Lakhs)	EPS (Rs.)	Market Price / P/E	RoNW (%)	Book Value/Share (Rs.)
Poojaa Precision Engg. Limited	29,519.93	21.90	N/A (Price TBD)	23.21	94.36
Alicon Castalloy Ltd	1,78,446.89	21.09	661.50 / 31.49	5.48	386.36
RICO Auto Industries Limited	2,48,771.00	3.73	135.36 / 36.29	6.68	57.97
Endurance Technologies Ltd	14,71,985.00	67.66	2,673.60 / 39.52	13.91	486.33

The RHP discloses 3 listed peers, all long established, much larger auto component manufacturers, ranging from roughly 6 times to nearly 50 times Poojaa's total income. On the ratio that is most directly comparable regardless of scale, RoNW, Poojaa's 23.21% is meaningfully higher than all 3 peers (ranging from 5.48% to 13.91%), and the industry average P/E of 35.77% (based on this peer set) suggests the broader auto component sector trades at a premium multiple, though Poojaa's own Offer Price based P/E is not yet determinable.

As with most SME versus large-cap peer comparisons in this series, the scale gap is real: the listed peers are established, diversified suppliers with decades of listed history, while Poojaa is newly public, so the comparison should inform rather than fully substitute for company specific due diligence.

Key Risks

l Customer concentration is significant: the top 5 customers contributed 88.64% of FY 2026 revenue (single largest customer alone 31.75%), and the top 10 contributed the same 88.64%, without long term supply commitments from any of them, so the loss of even one major customer could materially affect results.

l Revenue is heavily automotive sector dependent, and raw material cost (dominated by aluminium, 72.43% of raw material consumed in FY 2026) is a large, volatile input with no long term supplier contracts, exposing margins to commodity price swings.

l The Company has been unable to trace certain historical statutory and corporate records with the Registrar of Companies, including forms relating to past equity allotments, changes in registered office, appointment of directors and pre-2013 bank statements, some dating back to the 1990s and early 2000s; while no penalties or show-cause notices have been received to date, the Company acknowledges this could expose it to future regulatory or penal action.

l One Promoter and Non-Executive Director (Vaishali Dakshendra Agrawal) and one Senior Managerial Personnel (Shekhar Sharadchandra Dravid) previously appeared on SEBI's list of disqualified directors (2016 to 2021) due to unrelated companies being struck off for non-filing; and 2 other Promoters and Directors, along with an Independent Director, were previously associated with separate companies that were voluntarily struck off from the Register of Companies.

l There is a documented history of delayed statutory filings with the Registrar of Companies (forms including DIR-12, AOC-4, CHG-1 and MGT-14), with delays in some instances running as long as 575 days, spanning 2022 through as recently as 2026.

l The Company has experienced negative net cash flows in certain past periods and may do so again, and its new Pune manufacturing facility (the largest Object of this Issue) carries the customary execution risk of any capacity expansion, notwithstanding that machinery orders have, unusually for this series, already been placed.

l The Company's Restated Financial Statements were prepared by a Peer Reviewed Chartered Accountant who is not the Company's Statutory Auditor, a structure the Company itself flags as a risk factor.

l The Company depends on third party suppliers without firm long term commitments or exclusive arrangements for raw material procurement, concentrated among a top 10 supplier base contributing 57.17% of FY 2026 purchases.

l Future growth from the Company's incremental business pipeline is not guaranteed, since customer volume projections and letters of intent are typically non-binding.

l The Company operates in a highly competitive precision components industry and is subject to strict customer quality, delivery and development requirements.

l The Company relies on financing from banks and financial institutions to fund operations and capital expenditure, and any inability to access such financing on favourable terms could constrain growth plans.

Positives to Note

l The Company has a genuinely long operating history, tracing back to 1992, giving it more than 30 years of manufacturing track record ahead of this listing, unlike several newer companies in this report series.

l Return on net worth of 23.21% in FY 2026 is well above all 3 disclosed listed peers (ranging from 5.48% to 13.91%), despite those peers being substantially larger and more established.

l Financial performance has been comparatively steady rather than volatile: PAT margin stayed in a 9 to 11% band and RoNW in a 23 to 28% band across all 3 disclosed fiscal years, a more consistent profile than the sharp swings seen in some smaller, newer SME issuers in this series.

l The largest capital expenditure Object, the new Pune manufacturing facility, is unusually well substantiated for an SME issue: machinery orders and installation advances have already been placed and paid for via bridge financing, backed by a Statutory Auditor certificate, rather than resting on non-binding vendor quotations alone.

l The Company serves both automotive (including electric vehicle) and non-automotive sectors (agriculture, defence, energy, healthcare) across more than 600 SKUs, providing some end market diversification within its core aluminium die casting and machining capability.

l The Company has not received any show-cause notices or material penalties to date in connection with its disclosed historical record-keeping gaps or past director disqualification matters, and management states none of its current Directors, Promoters or KMPs are presently disqualified.

Disclaimer

The content on this website is for informational and educational purposes only and should not be construed as investment advice, a recommendation, or a solicitation to buy or sell any security, mutual fund, or financial instrument. Equity Research India is not a SEBI-registered investment advisor or research analyst, and nothing on this site constitutes personalized financial advice.

Mutual fund investments are subject to market risks. Please read all scheme-related documents carefully before investing. Past performance is not indicative of future returns. NAV, returns, rankings, and other data may change and may not reflect the most current information at the time of reading.

Readers should conduct their own due diligence and consult a SEBI-registered financial advisor before making any investment decisions. Equity Research India and its authors accept no liability for any loss or damage arising from the use of this content.