Altman Z″
Needs current assets and current liabilities.
METALIC · Engineering · INE1II801013
Analyst mean 0.00 · 0 analysts · 0% bullishThis company listed within the last twelve months, so its prospectus is still the primary source. The figures below were extracted from the DRHP and RHP before listing and scored then, and they are shown here as they stand in the IPO record rather than restated.
Each flag is a fact read in the filing, shown with the context that makes it meaningful.
Stated objects, as worded in the offer document. Deployment against them is tracked separately.
Claims made in the offer document, to be read against what the company has reported since.
Metalic Technoforge Limited is engaged in the manufacturing of closed die forged and precision-machined components. The product portfolio includes complex and safety-critical parts such as big rings, small rings, ball studs, gear blanks with broaching, gears, and coupling assemblies. The company caters to customers operating in industries such as automotive, farming equipment, construction machinery, hydraulic applications, commercial vehicles, and general engineering. Operations are conducted through a manufacturing facility located in Rajkot, Gujarat, which comprises four units. Three of these units are currently operational and equipped for forging, heat treatment, machining, and tooling. The fourth unit is currently vacant and proposed for setting up the new Manufacturing Unit IV.
Short: Metalic Technoforge Limited is engaged in the business of manufacturing of closed die forged and precision-machined components.
Source: p.171, p.179
The comparable set the company chose, which is itself a disclosure.
| Name | Margin | Pb | Pe | Roe | Source |
|---|---|---|---|---|---|
| Amic Forging Limited | 66.91 | 13.31 | p.371 | ||
| Tirupati Forge Limited | 135.43 | 4.72 | p.371 | ||
| Paramount Speciality Forgings Limited | 14.93 | 7.57 | p.371 | ||
| Metalic Technoforge Limited | 37 | p.371 |
As presented in the offer document. Post-listing figures are in the statements above.
| Basis | Period | Related party revenue cr | Pat cr | Ebitda cr | Pat margin | Revenue cr | Pat margin derived |
|---|---|---|---|---|---|---|---|
| standalone | FY26 | 0.3988 | 12.3644 | 21.9475 | 12.94% | 95.5475 | yes |
| standalone | FY25 | 0.6661 | 9.0281 | 16.0766 | 12.14% | 74.3722 | yes |
| standalone | FY24 | 4.4525 | 4.2641 | 7.2937 | 8.39% | 50.8509 | yes |
Written before listing, answered from the document itself.
How are the IPO funds being deployed?
The primary allocations are Rs 30.81 Cr for capital expenditure to set up Manufacturing Unit IV and upgrade existing units, and Rs 6.72 Cr for repayment of secured borrowings.
p.327
Who are the promoters and what is their holding?
The promoters hold 83.56% of the pre-issue capital. Their holdings were significantly expanded through a massive 16:1 bonus issue in March 2026.
p.266, p.267, p.283, p.293
Are there material related party transactions extracting value?
Yes, the company utilizes a group entity (M/s. Siddheshwar Technoforge Private Limited) for job work, and relies on heavy unsecured loans taken from its promoters and directors.
p. 176, p. 182, p. 183, p. 184
Does the company's cash flow match its reported profits?
No. Despite reporting a strong PAT of Rs 12.36 Cr in FY26, the company generated negative operating cash flows of Rs -0.96 Cr due to massive buildups in trade receivables (Rs 26.28 Cr) and inventories (Rs 32.30 Cr).
p. 67-73, 134, 160-168
What structural market risks apply to this issue?
As an SME IPO, it carries standing risks including a strictly mandated minimum investment lot size, 5% circuit filters, high dependence on the designated market maker (Shreni Shares Limited) for liquidity, and a thin free float.
p.8, p.9, p.11, p.182, p.237, p.686
What the issue priced at, on the figures in the document.
| Date | Name | Shares | Price per share | Category | Issue type | Source |
|---|---|---|---|---|---|---|
| 2016-10-04 | Mr. Gajipara Keyur Dhirajlal | 2000 | 10 | promoter | initial | p.254 |
| 2016-10-04 | Mr. Trambadiya Dhaval Vrajlal | 2000 | 10 | promoter | initial | p.254 |
| 2016-10-04 | Mr. Vadodariya Satish Rameshbhai | 2000 | 10 | promoter | initial | p.254 |
| 2016-10-04 | Mr. Kapadiya Vipul K | 2000 | 10 | promoter | initial | p.254 |
| 2016-10-04 | Mr. Pankil Chandubhai Padhariya | 2000 | 10 | other | initial | p.254 |
| 2018-05-24 | Mr. Rupapara Jay Rameshbhai | 400 | 10 | promoter | transfer | p.289 |
| 2019-01-30 | Mr. Gajipara Keyur Dhirajlal | 20000 | 10 | promoter | rights | p.256 |
| 2019-01-30 | Mr. Vadodariya Satish Rameshbhai | 15000 | 10 | promoter | rights | p.256 |
| 2019-01-30 | Mr. Trambadiya Dhaval Vrajlal | 20000 | 10 | promoter | rights | p.256 |
| 2019-01-30 | Mr. Kapadiya Vipul K | 20000 | 10 | promoter | rights | p.256 |
| 2019-01-30 | Mr. Pankil Chandubhai Padhariya | 20000 | 10 | other | rights | p.256 |
| 2019-03-29 | Mr. Gajipara Keyur Dhirajlal | 48000 | 10 | promoter | rights | p.258 |
| 2019-03-29 | Mr. Pankil Chandubhai Padhariya | 48000 | 10 | other | rights | p.258 |
| 2019-04-12 | Mr. Vadodariya Satish Rameshbhai | 53000 | 10 | promoter | rights | p.260 |
Ceo: Mr. Gajipara Keyur Dhirajlal
Direct tax proceedings against Company: 0.0577 Crore. Tax proceedings against Directors/Promoters: 0.0022 Crore. Criminal complaints by Promoters: 0.0300 Crore. Tax proceedings against Group Companies: 1.5742 Crore.
Auditor name: M/s. M B Jajodia & Associates
Skin in game: 83.56%
In preceding years, the company did not maintain proper records of quarterly records of inventory. Consequently, discrepancies existed during the year between the inventory statements submitted to the bank and the books of accounts, these were reconciled at year end.
Auditor changed last 3y: Yes
Source: p. 82-86, 211, 234, 523
Numbered markers are corporate actions and, once the filings are read, capital and governance events. Prices are split-adjusted so the series is continuous.
What the numbers mean when read together — computed from the filings, not a score.
The business reported a profit, yet its operations drained cash rather than generating it. Profit that comes with negative operating cash is the single most important thing to understand here.
Why this reading: Flagged on a single year deliberately: negative operating cash alongside a reported profit is plain, material, and hard to explain benignly — exactly the kind of obvious signal that should never be smoothed over.
Operating cash flow ₹-1 cr against trailing net profit ₹12 cr. When operations consume cash while the P&L shows profit, ask whether receivables are ballooning, revenue is booked ahead of collection, or costs are being capitalised.
Free cash flow is negative — the business consumes more than it generates once capex is paid. Fine if it is deliberate growth investment; a problem if it is structural.
Why this reading: Noted with caution — worth watching, but not yet conclusive on its own. Business has ups and downs; one soft reading is not a verdict.
Latest free cash flow ₹-5 cr, negative in 4 of 4 years. Check whether the burn funds expansion (dark stores, plants, ports) or merely sustains operations.
Every score below is calculated here from the reported numbers — none of it is asserted. Open the notebook at the foot of the section to see each formula with this company's figures in it.
Needs current assets and current liabilities.
Piotroski F-Score — fundamental momentum — Joseph Piotroski, University of Chicago, 2000, in a study of whether accounting signals could improve returns among cheap stocks.
Nine yes-or-no tests across profitability, leverage and operating efficiency. Each pass scores one. It asks a narrow question: is this business getting better or worse on its own terms, year over year?
How to read it7 or more suggests improving fundamentals; 3 or fewer suggests deterioration. It measures direction, not quality — a weak company improving can score higher than a strong one holding steady.
Where it failsA single year of comparison, so one unusual year distorts it. Says nothing about valuation, competitive position or management. Piotroski designed it to rank already-cheap stocks, not to judge a company in isolation.
Needs trade receivables, current assets, other expenses.
Accruals are 16.6% of assets. Free cash flow negative in 4 of 4 years.
DuPont decomposition — Devised inside the DuPont Corporation in the 1920s and still the standard way to read a return on equity.
Splits return on equity into its three sources, so the same headline number can be traced to very different businesses.
How to read itA 20% ROE built on margin and turnover is a different proposition from a 20% ROE built on 3× leverage. The first survives a downturn; the second amplifies it.
Where it failsA single year. Negative equity makes it meaningless. Leverage is structural for lenders, so the third term carries no signal there.
Capital is going in far faster than revenue is coming out. For a business mid-build that is expected — the test is whether it converts.
cumulative operating cash flow ÷ cumulative net profit
₹4 cr ÷ ₹26 cr, over 4 years
0.15×
Below 1.0 and persistent means profit is being recognised before the cash arrives.(net profit − operating cash flow) ÷ average total assets
(₹12 − ₹-1) cr ÷ average assets
16.6%
The share of profit that is accounting entries rather than cash. Above ~10% is where accruals start to dominate.net margin × asset turnover × leverage
12.5% × 1.04 × 2.71
35.3%
Splits ROE into whether returns come from operations or from borrowing.EBIT ÷ finance cost
₹20 cr ÷ ₹2 cr
10.00×
How many times operating profit covers the interest bill.borrowings ÷ net worth
₹32 cr ÷ ₹34 cr
0.94×
Read against the sector — infrastructure carries more than software.growth in fixed assets + CWIP, against growth in revenue
capital +340% vs revenue +104%, FY2023 to FY2026
236pp gap
Money going in far faster than revenue coming out. For an incubator this is expected — the test is whether it eventually converts.Needs more balance-sheet detail (only 3 of 6 flags testable).
NOPAT over equity plus debt less cash, at a notional 25% tax. Incremental ROIC is the return on money put in since then — the number that decides whether growth creates value or consumes it.
Return on invested capital, and incremental ROIC — Standard in corporate finance; the incremental form was popularised by Michael Mauboussin as the test of whether growth creates value.
ROIC measures what the business earns on all the capital it employs — equity plus debt, less cash. Incremental ROIC asks a sharper question: what has it earned on the money put in since a chosen year?
How to read itROIC comfortably above the cost of capital — call it 11–13% in India — means growth compounds. Below it, growth consumes. Incremental below headline means recent investment is earning less than the legacy business.
Where it failsDistorted in the year of a large acquisition. Understated for companies mid-build, where capital is deployed but capacity has not yet been commissioned — an incubator will look poor until it does not.
Read downward. Cash can cover EBITDA and still not survive capex — the third rung is where a capital-hungry business shows itself.
The earnings quality ladder — Not a named model — the standard sequence an analyst walks when testing whether reported profit is real.
Three ratios read in order, each stricter than the last.
How to read itRead downward. Each rung failing where the one above passed tells you exactly where the cash is going.
Where it failsA single year of heavy capex depresses the third rung legitimately. Judge it across a cycle.
Against a policy rate near 6%, most sound Indian corporates borrow between 7% and 10%.
Cost of debt — Interest expense over average borrowings — the effective rate the company actually pays.
What the lenders charge, which is a market verdict on credit quality that no rating agency delay affects.
How to read itAgainst a policy rate near 6%, most sound Indian corporates borrow between 7% and 10%. Read the direction over years as much as the level.
Where it failsUnderstated where a large share of interest is capitalised into projects under construction. Not meaningful for lenders, where interest is cost of goods.
Some figures appear twice on this page with different values. That is not an error — they sit on different bases. The live feed reports a rolling twelve months; everything computed here comes from the last audited statements. Both are shown so you can see which is which.
Where the two disagree, every model, screen and ratio computed on this page uses the filed figure, because the rest of the page is on that basis.
Models that need these lines are withheld rather than estimated: net worth, current assets, current liabilities, trade receivables, inventory, net block. Nothing on this page is back-solved from a figure the company did not publish.
Each framework below is a set of stated, mechanical criteria from published work, run against this company's own filed numbers. Passing or failing a screen is not a verdict — different frameworks disagree by design, and that disagreement is itself informative.
Benjamin Graham's stated criteria for a defensive stock, applied to the filed numbers. A company failing several is not disqualified — Graham designed these to be deliberately strict.
Two ratios only: what the business earns on its capital, and what you pay for those earnings. Designed to be ranked across a universe rather than read in isolation.
The fundamental half of William O'Neil's framework. The market and leadership components are judgement calls and are not scored here.
The characteristics long-term holders commonly look for: cash-backed earnings, high returns on capital, and debt that never forces a decision.
Median of the companies we hold in the same sector (Engineering). Every figure on both sides is the live feed's trailing twelve months, so the two are measured the same way whatever depth of extraction this company has had. A number only means something next to something else — expensive against the market and cheap against peers are different facts.
Bars are revenue; the line is net margin. Revenue rising while the line falls is the shape worth noticing.
Operating cash first, then what the business spent and raised.
One year is a snapshot. These are the two lines that matter across a cycle.
Rising debtor or inventory days against flat sales is the earliest visible sign of stress.
Set your own assumptions and watch the numbers move. A scenario calculator — the outputs are the arithmetic of your inputs.
One canonical set of figures — the same numbers used everywhere else on this page and on the screener.
Where cash gets stuck. A rising inventory or debtor line against flat sales is the earliest sign of trouble in the numbers.
| Measure | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|
| Debtor days
How long customers take to pay | 80 | 76 | 72 | 100 |
| Inventory days
How long stock sits before it sells | 48 | 127 | 185 | 257 |
| Payable days
How long the company takes to pay suppliers | 128 | 171 | 181 | 174 |
| Cash conversion cycle
Debtor + inventory − payable days | 0 | 32 | 76 | 183 |
| Working capital days | -9 | -3 | 21 | 64 |
| ROCE %
Return on capital employed | — | 49.0% | 46.0% | 36.0% |
The shape of the business over time (annual) — read the direction, not the single print.
| Line | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|
| Revenue from operations | 47 | 51 | 74 | 96 |
| Other income | 0 | 1 | 1 | 2 |
| Depreciation | 1 | 1 | 3 | 4 |
| Finance cost | 0 | 1 | 2 | 2 |
| Profit before tax | 2 | 6 | 13 | 18 |
| Net profit (owners) | 1 | 4 | 9 | 12 |
| EPS (₹) | 36.00 | 121.71 | 90.30 | 7.06 |
Exceptional items, total income and EBITDA are read from the filed statements.
| Item | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|
| Equity Capital | 0 | 0 | 1 | 18 |
| Reserves | 3 | 7 | 16 | 16 |
| Borrowings | 6 | 11 | 28 | 32 |
| Net block | 5 | 8 | 23 | 22 |
| CWIP | 0 | 2 | 0 | 0 |
| Investments | 0 | 0 | 0 | 0 |
| Total Assets | 21 | 34 | 65 | 92 |
| Line | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|
| Cash from operations | 1 | 2 | 2 | -1 |
| Cash from investing | -2 | -6 | -18 | -4 |
| Cash from financing | 2 | 4 | 16 | 5 |
| Free cash flow | -1 | -4 | -13 | -5 |
| Net change in cash | 0 | 0 | 0 | 0 |
Cash from operations is the number profit has to answer to. Free cash flow is what remains after the business pays for its own growth.
These are coverage counts, not ratings. Each one asks a fixed set of questions of the filings and reports how many the company answered. A company that discloses nothing counts nothing here — that is a statement about the disclosure, not about the business.
The same read, applied to the companies this one competes with.