Associated Ceramics Ltd. Share Price

Poojaa Precision Engg

• Poojaa Precision Engg is coming out with an initial public offering (IPO) of 53,10,000 shares in a price band of Rs 285-301 per equity share.
• The issue will open on July 28, 2026 and will close on July 30, 2026
• The shares will be listed on SME Platform of BSE.
• The face value of the share is Rs 10 and is priced 28.50 times of its face value on the lower side and 30.10 times on the higher side.
• Book running lead manager to the issue is Hem Securities.
• Compliance officer for the issue is Shalaka Satish Khandelwal.

Profile of the company

The company is a precision engineering company engaged in the manufacturing of aluminium die casting and machining components for use in the automotive sector, including electric vehicle applications and the non-automotive sector, covering agriculture, defence, energy, healthcare and engineering goods industry. Its manufacturing facilities include melting units, casting lines that support gravity die casting (GDC), low-pressure die casting (LPDC), high-pressure die casting (HPDC) and machining capabilities for component finishing processes. The company has over 600 SKUs, which also include certain safety-critical components used in automotive, electric vehicle and non-automotive applications. It endeavours to provide its customers with integrated solutions covering design, engineering, melting, casting, cleaning and value-added processes including machining, assembly and related engineering services.

The company supplies components such as bracket, compressor, intake manifold, cylinder head cover, assembly air intake manifold, camshaft carrier, clutch housing, cover front, oil filter holder (NA), elbow assembly etc. for the automotive sector. For the electric vehicle mobility sector, its supplies include transmission housings, brackets and housing bearing sleeve assembly. For the non-automotive sector, it supplies drive box housing FA5, cast flange, elbow, turbo outlet, external conductor, contact carrier (fertigteil), upper bracket, conductor, carrier, drive box housing (FA1) etc. 

The company has expanded its product portfolio beyond the automotive sector to cater to the electric vehicle and non-automotive sectors, including agriculture, defence, energy, healthcare, engineering goods and other industries. It has recently entered the aerospace segment and have obtained vendor approval from a customer for the supply of its products, reflecting its focus on diversifying its customer base and end-use industries.

Proceed is being used for:

• Funding capital expenditure towards setting up of manufacturing facility in Pune 
• Meeting working capital requirements
• General corporate purpose

Industry overview

India has emerged as the fastest-growing economy in the world in recent years. Rising incomes, higher infrastructure spending, and supportive manufacturing incentives have together accelerated the automobile sector, making it a critical pillar of India’s growth story. The two-wheeler segment, driven largely by the expanding middle class, continues to dominate the market, with sales reaching 19.6 million units in FY25. This surge in demand has also encouraged the expansion of original equipment and auto component manufacturers, helping India build strong expertise in this space and enhancing global demand for Indian vehicles and components. The industry is now witnessing a shift towards electrification, though internal combustion engine (ICE) vehicles continue to dominate. In 2024, India produced 100,000 electric cars and 900,000 electric two-wheelers, alongside 20 million two-wheelers and 5 million cars powered by ICE technology. 

India’s auto components industry has significantly expanded its market share, driven by rising automobile demand from the growing middle class and strong global exports. The sector has attracted both Indian and international players and is broadly classified into organised and unorganised segments. While the unorganised sector primarily caters to the aftermarket with low-value items, the organised sector focuses on supplying high-value precision instruments to Original Equipment Manufacturers (OEMs). India’s automobile production further highlights the scale of demand that supports the component industry. In FY25, domestic sales stood at 1,96,07,332 units for two-wheelers, 43,01,848 units for passenger vehicles, 9,56,671 units for commercial vehicles, and 7,41,420 units for three-wheelers.

The rapidly globalising world is creating new opportunities for the transportation industry, particularly with the shift towards electric, electronic, and hybrid vehicles that are seen as more efficient, safe, and reliable. Over the next decade, this transition will open new verticals for auto component manufacturers, supported by strong government policy measures. The Indian government has already introduced production incentives and is investing heavily in electric vehicle (EV) infrastructure, including the exemption of customs duties on capital goods and machinery used for producing lithium-ion cells.

Pros and strengths

Integrated manufacturing capabilities: It operates out of its two manufacturing facilities located in Pune, Maharashtra, which are equipped with (i) melting furnaces and ladle furnace used in melting activities, (ii) casting machines capable of undertaking different type of casting i.e. gravity die casting (GDC), Low pressure die casting (LPDC) and High pressure die casting (HPDC), (iii) high-precision machining equipment, (iv) heat treatment furnaces and induction hardening equipment & (v) testing equipment like spectro analysis instruments, hardness testing machines, density index units, vacuum analysers, leak-testing systems (dry-cum-wet, hydro-test and wet-type), universal testing machines, coordinate measuring machines (CMM) and 3D scanning and inspection systems. It operates on a purchase order basis, where its customers provide it with estimated order quantities on periodic basis. The final orders received may fluctuate, based on the demand at that time. This helps it aims to keep its manufacturing lines operating at optimum levels. 

Design capabilities with emphasis on customer specifications & quality standards: The company has undertaken several initiatives, including engaging closely with its customers to design and develop products manufactured based on customer specific requirements. It develops components and processes through its precision engineering and its in-house design and manufacturing capability and in adherence to the specifications and requirements of its customers. Its precision engineering capabilities has enabled it to develop and deploy reverse engineered solutions, which help provide it with a competitive advantage in terms of quality, cost and delivery parameters. These capabilities enable it to offer quality products at an optimal cost. Its design team is equipped with software tools such as computer-aided design tools, which further enhance the design and development processes that it utilizes.

Offering precision engineering solutions with a comprehensive product portfolio: The company is a precision engineering company, with a primary focus on manufacturing aluminium die casting components for use in, among others, the automotive sector including electronic vehicle, agriculture, defence, energy, healthcare, engineering goods and certain other industries. Its manufacturing units is equipped with the melting capacity of 13800 MT and casting/machining capacity of 6000 MT capable of undertaking gravity die casting (GDC), Low pressure die casting (LPDC) and High pressure die casting (HPDC). These manufacturing facilities are capable to produce a range of casting products. It manufactures critical parts including bracket, compressor, intake manifold, cylinder head cover, assembly air intake manifold, camshaft carrier, clutch housing, cover front, oil filter holder (NA), elbow assembly etc. for the automotive sector. For the electric vehicle mobility sector, its supplies include transmission housings, brackets and housing bearing sleeve assembly. For the non-automotive sector, it supplies drive box housing FA5, cast flange, elbow, turbo outlet, external conductor, contact carrier (fertigteil), upper bracket, conductor, carrier, drive box housing (FA1) etc. 

Risks and concerns

Revenue dependency on top ten customers: The company derives more than 85% of its revenue from operations from the sale of products to its top ten customers during the last 3 fiscal years. The company’s revenue from its top 10 customers accounted for 88.64%, 90.63% and 96.00% of the total sales for FY 2026, FY 2025 and FY 2024, respectively. It depends and expects to continue to depend on its top ten customers for a substantial portion of itd revenue. The loss of any of these customers for any reason (including due to loss of, or failure to renew existing arrangements; limitation to meet any change in quality specification, change in technology; disputes with a customer; adverse changes in the financial condition of its customers, such as possible bankruptcy or liquidation or other financial hardship) could have a material adverse effect on its business, results of operations and financial condition.

Dependence on third-party suppliers for raw materials: The company depends on third-party suppliers for its raw materials that it procures from them which are typically valid until terminated by either party by giving prior notice. It may be unable to source such commodities from alternative suppliers on similar commercial terms and within a reasonable timeframe. The company’s purchases from its top 10 suppliers accounted for 57.17%, 59.28% and 65.66% of its total purchases for FY 2026, FY 2025 and FY 2024, respectively. Furthermore, as it typically does not have exclusive arrangements with its suppliers, its suppliers could engage with its competitors and prioritize supplies of their other customers, which could adversely impact its ability to procure a sufficient quantity of raw materials at competitive rates. Loss of suppliers may have an adverse effect on its business, results of operations and financial condition.

High concentration of revenue from the automotive sector: Its business is primarily focused on manufacturing and supplying automotive components to customers and OEMs engaged in the automobile sector, and is therefore heavily dependent on the performance of the automotive sector in India. The company’s revenue from the automobile sector accounted for 72.58%, 72.05% and 79.87% of its total revenue for FY 2026, FY 2025 and FY 2024, respectively. A significant portion of its revenue from operations in each of the last three Fiscals is attributable to the automotive sector. Any adverse changes in the automotive sector could adversely impact its business, results of operations and financial condition.

Outlook

Poojaa Precision Engg is a precision engineering company engaged in the manufacturing of aluminium die casting and machining components for use in the automotive sector, including electric vehicle applications and the non-automotive sector. The manufacturing facilities include melting units, casting lines that support gravity casting, low-pressure die casting (LPDC), high-pressure die casting (HPDC) and machining capabilities for component finishing processes. On the concern side, pricing pressure from its customers or its inability to fully pass on costs to its customer, may impact its revenue from operations and profitability and may result in a materially adverse effect on its business, results of operations and financial condition. Further, it is dependent on third parties for the transportation and timely delivery of its products to customers. Any delays, cost fluctuations, and loss or damage of goods may adversely affect its supply chain, profitability and reputation.

The company is coming out with a maiden IPO of 53,10,000 equity shares of face value of Rs 10 each. The issue has been offered in a price band of Rs 285-301 per equity share. The aggregate size of the offer is around Rs 151.34 crore to Rs 159.83 crore based on lower and upper price band respectively. On performance front, its total income has increased by 32.49% to Rs. 29519.93 lakh in fiscal 2026 from Rs 22280.04 lakh in Fiscal 2025. The profit after tax of the company increased from Rs 2393.08 lakh in the Fiscal 2025 to Rs 3090.28 lakh in the Fiscal 2026 representing an increase of 29.13%.

Meanwhile, the company intends to continue expanding its customer base by leveraging existing relationships in India and globally, while pursuing opportunities to develop new relationships. The company aims to strengthen engagement with current customers to enhance existing products and increase the range of products manufactured for each customer. The company also plans to diversify and expand its business operations in line with evolving customer requirements. Its longstanding relationships with key customers are expected to help leverage industry growth trends in the automotive and non-automotive sectors. To achieve these objectives, it plans to actively manage key customer accounts, increase interactions, collaborate in the early stages of product development and assist in optimizing supply chains. It intends to grow revenue from exports by focusing on sales in international markets and expanding offerings in existing geographies where current customers are present.

Pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirement) Regulations, 2015, Sigma Advanced Systems has informed that it attached the Press Note with the title: ‘Sigma Advanced Systems Secures USD 104.9 Million (roughly INR 1,013 Cr.) Export Order for Next-generation Extended Range 155mm Base Bleed Artillery Shells’.

The above information is a part of company’s filings submitted to BSE.