SJP Ultrasonics IPO (30 Sep-05 Oct) Analysis

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SME IPO Analysis | BSE SME Platform | Fixed Price Issue (Fresh Issue Only) | Regulation 229(2) and 253(3)

Based on Prospectus dated September 24, 2026 | Plastic Joining, Industrial Automation and Laser Technology Solutions | Palghar, Maharashtra

SJP Ultrasonics Limited was incorporated as SJP Ultrasonics Private Limited on January 27, 2012. The registered office and manufacturing facility are at Gala No. 1 and Gala No. 2, Shiv Shankar Industrial Complex 2, Bhutpada, Building No. 5, Opposite Golden Chariot Hotel, Highway, Vasai East, Palghar 401208, Maharashtra.

The website is www.sjpultrasonics.in. The promoters are Jignesh Pravinchandra Parekh, Rupal Jignesh Parekh, Parth Jignesh Parekh, Parthvi Jignesh Parekh and Jignesh Pravinchandra Parekh HUF. Jamshed Kokab Khan is Company Secretary and Compliance Officer.

The company is an end to end plastic joining and industrial automation solutions provider, serving the automotive, medical, electrical, electronics, textile, FMCG, toys, defence and education sectors.

Revenue is organised across three segments: Plastic Joining Solutions, Industrial Automation and Laser Technology Solutions, and the company has developed an integrated procurement relationship with international manufacturers of ultrasonic and vibration welding equipment, alongside an in house design and engineering team that develops tools and machinery for customer specific applications.

Industrial Automation grew from 24.53% of FY2025 revenue to 50.48% in FY2026, overtaking Plastic Joining Solutions as the largest segment. The company has expanded its presence with offices and demo centres in Vasai, Pune, Gurgaon and Chennai. As of March 31, 2026, the Order Book stood at Rs.2,118.56 Lakhs across 64 purchase orders. The financial year ends March 31.

Key Basics

This is a fixed price issue on the BSE SME platform, made under Regulation 229(2) and 253(3) of the SEBI ICDR Regulations, at a fixed Issue Price of Rs.67 per share. This is a Prospectus, not a Red Herring Prospectus, reflecting the fixed price structure where the price is already determined rather than discovered through book building.

Field	Value
Document Type	Prospectus dated September 24, 2026. Fixed Issue Price: Rs.67 per Equity Share.
Platform	BSE SME. Designated Stock Exchange: BSE.
Issue Structure	Fresh Issue only, 35,00,000 Equity Shares aggregating Rs.2,345.00 Lakhs. No Offer for Sale.
Face Value	Rs.10 per Equity Share
Lead Manager	Not identified in the extracted document
Registrar	Not identified in the extracted document
Bid Dates	Not identified in the extracted document

What distinguishes this issue is that EPS actually fell even as PAT grew every year: Basic EPS moved from Rs.6.19 in FY2024 to Rs.6.75 in FY2025 to Rs.5.55 in FY2026, purely because share capital jumped from Rs.110.00 Lakhs to Rs.944.00 Lakhs during FY2025, diluting per share earnings on genuinely growing profit.

How Will the IPO Money Be Used?

This is a Fresh Issue only, with no Offer for Sale.

Object	Amount (Rs. Lakhs)	Details
Capital expenditure: purchase of machinery	1,321.64	Milling machines, CNC lathe, compressor, CNC bandsaw, overhead crane, a 6 axis robot, a CO2 laser cutting unit, CMM machine, vibration welders and a laser plastic welder, to expand in house manufacturing capability. Quotations obtained; no orders placed as of the Prospectus date.
Working capital	492.00
General corporate purposes	305.00
Total Net Proceeds	2,118.64	Rs.226.36 Lakhs of Gross Proceeds of Rs.2,345.00 Lakhs goes to Issue related expenses.

As with other fixed price issues in this series, this Prospectus discloses fully quantified figures rather than [TBD] placeholders. Capital expenditure on machinery is by far the largest object, 62.38% of Net Proceeds. None of the objects has been appraised by a bank or financial institution, and no purchase orders have been placed for the machinery.

Financial Performance

Revenue, EBITDA, and Profitability

Rs. Lakhs	FY2026	FY2025	FY2024
Revenue from Operations	2,655.77	2,105.73	1,521.07
EBITDA	823.81	683.68	541.50
EBITDA Margin	31.02%	32.47%	35.60%
Profit After Tax	524.26	417.25	340.20
PAT Margin	19.74%	19.81%	22.37%
EPS, Basic and Diluted (Rs.)	5.55	6.75	6.19
Return on Net Worth	26.10%	28.10%	51.33%
Return on Capital Employed	38.49%	50.80%	80.53%

Revenue grew 26.13% in FY2026 to Rs.2,655.77 Lakhs, and PAT grew 25.65% to Rs.524.26 Lakhs, extending steady growth across all three years. EBITDA margin and PAT margin both eased slightly each year, from 35.60% and 22.37% in FY2024 to 31.02% and 19.74% in FY2026, even as absolute profit grew.

RoNW and RoCE both fell sharply, from 51.33% and 80.53% in FY2024 to 26.10% and 38.49% in FY2026, driven by the large FY2025 equity infusion that expanded share capital from Rs.110.00 Lakhs to Rs.944.00 Lakhs.

Segment mix shifted sharply: Industrial Automation grew from 24.53% of FY2025 revenue to 50.48% in FY2026, overtaking Plastic Joining Solutions, which fell from 74.43% to 46.52%.

Balance Sheet and Cash Flow

Rs. Lakhs	FY2026	FY2025	FY2024
Total Assets	3,520.43	2,706.33	1,697.04
Total Equity	2,008.99	1,484.73	673.49
Total Borrowings	578.09	240.92	200.61
Debt to Equity	0.29x	0.16x	0.30x
Inventories	1,643.03	1,060.25	879.15
Net Cash from Operating Activities	(269.87)	(287.68)	14.94
NAV per Share (Rs.)	21.28	15.73	60.26

Operating cash flow turned negative in both FY2025 and FY2026, Rs.287.68 Lakhs and Rs.269.87 Lakhs used respectively, reversing a small positive Rs.14.94 Lakhs in FY2024, driven by inventory building from Rs.879.15 Lakhs to Rs.1,643.03 Lakhs over the period.

Net Debt to EBITDA rose from 0.17x in FY2024 to 0.64x in FY2026, though it remains at a manageable level. NAV per share after this Issue, at the fixed Issue Price of Rs.67, is Rs.33.65, meaning new investors buy in nearly double the post Issue net asset value.

How Does It Compare to Peers?

The Prospectus states that no listed peer exists for this business, but names two unlisted comparable companies, Rinco Ultrasonics India Private Limited and Unique Circle Automation Private Limited, sourced from their MCA annual filings for Fiscal 2025, since both companies' Fiscal 2026 filings were pending as of the Prospectus date.

Company (Unlisted, FY2025)	Revenue (Rs. Lakhs)	EBITDA Margin	RoNW (%)	Debt to Equity
SJP Ultrasonics Limited (FY2026)	2,655.77	31.02%	26.10%	0.29x
Rinco Ultrasonics India Private Limited	1,220.81	16.65%	12.64%	0.001x
Unique Circle Automation Private Limited	2,628.12	9.57%	22.41%	0.56x

SJP Ultrasonics' EBITDA margin and RoNW are both ahead of these two unlisted comparables, though neither is a listed company and neither has filed Fiscal 2026 results, so this is not a market based valuation reference.

The Prospectus's own quantitative section uses FY2025 EPS of Rs.6.75 in its peer comparison table, rather than the more recent FY2026 EPS of Rs.5.55 used to compute the 12.07x P/E on the fixed Issue Price, an inconsistency worth noting when reading that table.

Key Risks

• No listed peer exists for this business, and because this is a fixed price issue there is no book building process to help discover a market clearing price; the Rs.67 Issue Price is set unilaterally by the company and Lead Manager, with only two unlisted, differently sized companies offered as a rough reference.

• Operating cash flow turned negative in both FY2025 and FY2026, Rs.287.68 Lakhs and Rs.269.87 Lakhs used respectively, as inventory nearly doubled from Rs.879.15 Lakhs to Rs.1,643.03 Lakhs.

• EPS fell from Rs.6.75 in FY2025 to Rs.5.55 in FY2026 despite PAT growing 25.65% that year, because share capital jumped more than eightfold during FY2025; investors should judge the business on absolute profit growth rather than the EPS trend alone.

• Two business segments, Plastic Joining Solutions and Industrial Automation, were 46.52% and 50.48% of FY2026 revenue respectively, and the mix between them shifted sharply within a single year, indicating segment level revenue can swing significantly year to year.

• No purchase orders have been placed for the Rs.1,321.64 Lakhs of machinery funding the core capital expenditure object, the largest use of Net Proceeds at 62.38% of the total.

• NAV per share after this Issue, at Rs.33.65, sits well below the fixed Issue Price of Rs.67, meaning new investors pay close to double the post Issue book value with no listed market benchmark to assess whether that premium is reasonable.

• Both RoNW and RoCE have declined sharply every year shown, from 51.33% and 80.53% in FY2024 to 26.10% and 38.49% in FY2026, primarily reflecting the FY2025 equity infusion diluting returns on a larger capital base.

• The company depends on long standing relationships with international manufacturers of ultrasonic and vibration welding equipment for its integrated procurement model; disruption to these relationships could affect product quality and delivery timelines.

• Net Debt to EBITDA nearly quadrupled from 0.17x in FY2024 to 0.64x in FY2026, still moderate but a clear directional increase in leverage relative to operating earnings.

• This report could not identify the Lead Manager, Registrar or Bid dates from the extracted text; investors should confirm these directly from the final Prospectus.

• As an end to end B2B solutions provider across automotive, medical and industrial sectors, the business is exposed to capital expenditure cycles at its customers, which can be deferred during periods of economic uncertainty.

Positives to Note

• Revenue grew from Rs.1,521.07 Lakhs in FY2024 to Rs.2,655.77 Lakhs in FY2026, and PAT grew from Rs.340.20 Lakhs to Rs.524.26 Lakhs over the same period, both steady multi year growth rather than a single good year.

• The Order Book stood at Rs.2,118.56 Lakhs across 64 purchase orders as of March 31, 2026, providing visibility into near term revenue.

• Debt to Equity has stayed moderate, between 0.16x and 0.30x across all three years shown, despite the recent rise in Net Debt to EBITDA.

• EBITDA margin and RoNW both compare favourably against the two unlisted comparable companies named in the Prospectus, even though those companies are not listed peers.

• The company has diversified its revenue base across three distinct business segments, plastic joining, industrial automation and laser technology, and across multiple end industries including automotive, medical and defence, rather than depending on a single product line.

• The company has expanded its physical presence with offices and demo centres in four cities beyond its Palghar manufacturing base, supporting broader customer reach across India.

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