Sedemac Mechatronics IPO targets high-risk investors with strong growth metrics but significant concentration risk. The Pune-based auto components company plans to raise Rs 1,087.5 crore through an offer for sale. Between FY23 and FY25, revenue grew 24.8% annually to Rs 658.4 crore while net profit surged 134.3% to Rs 47 crore. Ebitda margin expanded to 19% from 12.8%, and return on equity climbed to 22% from 7.8%. However, nearly 75% of revenue derives from TVS Motor Company, creating substantial customer concentration risk. The post-IPO P/E multiple stands at 62.7, comparable to peers like Sona BLW at 54 and ZF Commercial Vehicle at 56. The company manufactures powertrain controllers and electronic control units for leading OEMs. With two operational manufacturing facilities at strong capacity utilization and two upcoming facilities, Sedemac demonstrates expansion ambitions.
Post from MarketNews_en
Log in to interact with content.