In an SME IPO landscape where manufacturing-heavy firms often blur into one another, Neetu Yoshi sets itself apart with a sharply defined customer focus — Indian Railways. This foundry and CNC machining company, specializing in customized ferrous metallurgical components, is making its public debut on the BSE SME platform via a 100% fresh issue IPO priced at INR 71–75 per share.
Let’s unpack Neetu Yoshi IPO review and break down the key elements of this offer.
Industry & Business Overview
Operating in the niche space of railway-grade ferrous casting, Neetu Yoshi’s core specialization spans spheroidal graphite iron, manganese steel, and cast iron components. As of March 2025, it caters almost exclusively to Indian Railways — supplying components vital to braking, suspension, and propulsion systems, particularly for LHB coaches and wagons.
Their single-location manufacturing facility in Bhagwanpur, Uttarakhand, has scaled impressively: from 4,493 MTPA capacity in FY24 to 8,087 MTPA by FY25. The company is RDSO-certified for over 25 products, making it a strategic vendor within India’s national transport backbone.
Objects of the Offer
The IPO comprises a fresh issue of 1.03 crore shares, aiming to raise INR 72.93–77.04 crore. There’s no Offer for Sale, suggesting promoters are retaining their full stake — typically a vote of confidence.
Key allocations from the IPO proceeds include:
- Installation of modern machinery including high-capacity CNC systems
- Expansion of in-house heat treatment and ladle pre-heating systems
- Purchase of new VMC and lathe systems to reduce third-party dependence
- Working capital to support scaled raw material procurement
- General corporate purposes and brand visibility
Nearly INR 30 crore is planned for capital expenditure, further validating their high-growth manufacturing intent.
Financial Performance and Operational Efficiency
| Metric | FY22 | FY23 | FY24 | 9M FY25 |
|---|---|---|---|---|
| Revenue | 4.59 | 16.23 | 47.33 | 51.36 |
| Net Profit | 0.00 | 0.42 | 12.58 | 11.99 |
| EBITDA Margin (%) | 3.81 | 7.43 | 36.31 | ~33 |
| ROCE (%) | 4.76 | 6.28 | 43.74 | — |
The financials show a dramatic scale-up. Revenue has increased over 10x in two years, while EBITDA margins jumped from 3.8% to 36.3%. Profit after tax surged from virtually nil in FY22 to INR 12.58 crore in FY24.
Net worth rose to INR 40.14 crore as of 9M FY25 from INR 5.57 crore in FY23, powered by high retention and equity infusions. The debt-to-equity ratio declined from 1.48x in FY23 to 0.88x in FY24, implying improved capital structure post-expansion.
Neetu Yoshi IPO Review: Strengths
- In-House Manufacturing: Neetu Yoshi manufactures castings, machined, and fabricated products internally, enabling quality control, faster delivery, and reduced third-party dependence.
- Diversified Industry Reach: The company serves railways, steel, cement, power, and OEMs, lowering exposure to sector-specific downturns and supporting stable revenue.
- Custom Engineering Solutions: It specializes in client-specific designs, allowing entry into high-value, low-competition segments with strong client retention and pricing power.
- Proven OEM & Govt Track Record: Regular supply to OEMs and Indian Railways reflects compliance, capacity, and credibility in meeting strict standards.
- Dedicated Facilities: An onsite foundry and OEM-specific facility support efficient, customized production with cost-effective logistics for key clients.
- Value-Added Processes: Machining, assembly, and fabrication services enhance margins and create a one-stop manufacturing solution, strengthening business scalability.
- Technical Capability: Expertise in complex, high-precision materials and jobs—especially for power and heavy industries—gives a competitive edge and raises entry barriers.
Neetu Yoshi IPO Review: Risks
- Customer Concentration: Up to 99.94% of revenue in FY 2022 came from top 10 customers, mostly linked to Indian Railways. Any disruption in these accounts could significantly impact revenue and operations.
- Infra Dependency: Business growth depends on government investments in railway infrastructure. Any slowdown or policy shift may adversely affect future revenues and order flow.
- Cash Flow Volatility: The company had negative operating cash flow of INR 1.95 crore in FY 2023. Continued shortfalls may hinder operations, debt repayment, and investment capacity.
- Legal Proceedings: Three pending tax cases totaling INR 4.33 lakhs exist as of 31 March 2025. Unfavorable outcomes may result in financial liabilities and reputational risk.
- High Debt Needs: Secured borrowings of INR 13.60 crore (as of 31 March 2025) reflect high capital needs. Debt dependency may affect flexibility and increase financial risk.
- Unsecured Loans Risk: INR 6.00 lakhs in unsecured loans are repayable on demand. Sudden recall could disrupt cash flow and impact business stability.
- Promoter Guarantee Risk: Promoters’ personal guarantees back key loans. Defaults may trigger these guarantees, affecting shareholding, reputation, and financial access.
Neetu Yoshi IPO Review: Valuation and Peer Comparison
At an issue price of INR 75 per share, Neetu Yoshi is valued at a P/E multiple of 10.15x, based on FY24 EPS (INR 7.39). This multiple is conservative given the firm’s high return ratios and sector-specific operating strengths.
Here is a comparison with direct listed peers in the ferrous casting and metallurgy space:
| Company | Revenue (INR Cr) | P/E (TTM) | EPS (INR) | RoNW (%) | NAV/Share (INR) |
| Neetu Yoshi | 47.33 | 10.15x | 7.39 | 99.28% | 7.29 |
| Gujarat Intrux | 57.20 | 23.24x | 21.42 | 12.26% | 180.46 |
| Nelcast | 1,266.94 | 21.41x | 6.25 | 10.99% | 59.68 |
| Steelcast | 409.81 | 28.83x | 37.06 | 30.71% | 133.21 |
Despite being smaller in revenue scale, Neetu Yoshi delivers a significantly superior return on net worth — a direct reflection of capital efficiency and internal accruals. Its P/E valuation stands at a discount to these peers, suggesting upside potential if growth sustains post-listing.
Verdict
Neetu Yoshi IPO is attractively priced, with standout growth metrics, expanding capacity, and premium margin profile. Its certified status with Indian Railways gives it an entry barrier advantage, and the capex-funded scaling plan offers runway for future revenue growth.
However, the IPO comes with a narrow customer base and single-location risk, which makes it more vulnerable to policy or operational shocks.
For investors comfortable with SME liquidity and sector-specific exposure, this is a compelling high-risk/high-reward opportunity.
For more details related to IPO GMP, SEBI IPO Approval, and Live Subscription stay tuned to IPO Central.