Roopa Screen
A distinct read of SME-specific danger (liquidity, concentration, forensic flags) — separate from the FinMinutes Score. Higher band = more caution warranted.
- Pre-IPO 6:1 bonus issue in September 2025 expanded promoter equity at nil cost.
- Discontinuation of Narol manufacturing facility in December 2025 due to lack of statutory licenses and consents.
- Demand-repayable promoter unsecured loans represent 45.84% of total company debt.
- Operating cash flow declined 51.47% over two years (from Rs. 5.86 crore in FY24 to Rs. 2.85 crore in FY26) despite PAT expanding 331%.
- Pending GST tax demand intimation of Rs. 0.33 crore for wrong ITC availment.
Educational risk signal grounded in the filing — not a buy/sell call.
First time with SME IPOs? Read the SME IPO guide and the risks before applying.
FinMinutes Deep Business Model & Edge
Roopa Screen Limited is an ISO 9001:2015, ISO 14001:2015 and ISO 45001:2018 certified manufacturer of rotary nickel screens used as stencils in rotary screen-printing machines, primarily for continuous printing on fabrics in the textile industry.
What this company actually does — full breakdown ▾
Incorporated in 2013 and headquartered in Ahmedabad, Gujarat, Roopa Screen Limited is engaged in manufacturing rotary nickel screens (Delta, Penta, Standard, and Nova screens) used as stencils in rotary screen-printing machines for continuous printing on fabrics. The company operates a manufacturing facility at Gallops Industrial Park-II, Sanand, Ahmedabad with an installed capacity of 74,400 screens per annum, achieving 96.51% capacity utilization in FY26 (80.93% in FY25). Manufacturing operations at its Narol, Ahmedabad facility (14,400 capacity) were discontinued with effect from December 15, 2025 due to lack of statutory approvals. In FY26, sales of manufactured rotary nickel screens contributed 82.91% of revenue (Penta screens 38.54%, Standard 21.90%, Delta 16.16%, Nova 6.48%), trading of nickel cathodes contributed 16.91%, and transport/freight revenue contributed 0.18%. The company supplies to over 200 B2B customers across India, with Gujarat generating 58.93% of FY26 operational revenue. Principal raw materials, primarily nickel cathodes and chemicals (nickel sulphate, nickel chloride, boric acid), are sourced from vendors in Gujarat and Maharashtra, with top 10 suppliers accounting for 96.73% of total purchases.
Strategic location in Ahmedabad textile hub, in-house manufacturing facility with integrated quality testing laboratory and ISO certifications, established relationships with over 200 B2B textile customers, and proprietary product variants (Delta, Penta, Standard, Nova).
The Offer
Follow the Money — Use of Proceeds
- Funding of capital expenditure towards setup of a new manufacturing facility — ₹9.90 cr
- Funding of Working Capital Requirements — ₹6.00 cr
- General Corporate Purpose
Valuation at the Offer Price
The filing does not print a single headline multiple, so this one is ours: the upper band divided by the latest restated earnings per share — the same arithmetic the “Basis for the Offer Price” section performs. It is struck on pre-issue earnings; where the issue creates new shares, the post-issue multiple is computed in the workings below. The peer group is the one the filing itself names. A premium is not the same thing as expensive and a discount is not the same thing as cheap — the peer table and the reasons sit further down this page.
FinMinutes IPO Score — How It's Built
Transparent, deterministic, computed from the filing — not an opinion. Open any component below to see exactly what it measures and what it is worth. Components with no disclosed input are dropped from the weighting entirely rather than held at an invented neutral, because a constant inside a weighted average is not neutral — it quietly drags every score toward the middle. Weighted across 4 live components.
88% of the designed weighting had real data behind it on this issue. Not yet scored here: Filing Integrity. A lower coverage figure does not mean a worse company — it means we are standing behind less of the picture, and you should read the findings below rather than the headline number.
How this is measured12%
Whether fresh capital actually enters the business. A predominantly offer-for-sale issue is marked down ONLY when the financials are weak. A profitable, cash-rich company selling down is treated as neutral, not penalised, because it does not need the money.
How this is measured32%
Driven by the models battery run on the filing's own restated numbers: the Piotroski fundamental tests (scored out of those we could actually run), the Altman Z-double-prime solvency zone, and the direction of profit across the disclosed period. It is not a single yes/no on last year's profit.
How this is measured10%
The post-issue earnings multiple against the peer median disclosed in the filing. A discount to the median scores well and a premium scores badly. When the filing does not disclose comparable peer multiples, this component is dropped from the weighting rather than held at a made-up neutral.
How this is measured28%
Starts at 100 and loses points for every material finding: 12 for a flagged finding, 4 for a noted one. Two kinds feed it. DERIVED findings are computed from the filed numbers against stated thresholds — operating cash negative while profit is positive, related-party revenue above 15% of total, revenue rising while profit falls, goodwill above 30% of net worth, receivables growing more than 1.3x faster than sales, cash below half of short-term debt. Those are reproducible: the same filing gives the same answer every time, and the rule is printed beside the finding. READ findings come from the forensic sweep of the notes. Contingent liabilities, related-party intensity, customer concentration, litigation, auditor qualifications, statutory dues, promoter funding. Findings that record the ABSENCE of a problem — no litigation pending, an unmodified audit opinion — deduct nothing. This is the component our forensic read drives directly, and it moves most between companies.
3-Year Financial & Growth Trend
| Metric | FY26 | FY25 | FY24 |
|---|---|---|---|
| Revenue (₹ Cr) | 50.7273 | 45.3412 | 35.7053 |
| Net Profit (₹ Cr) | 6.4833 | 4.6853 | 1.5036 |
| PAT Margin | 12.78% | 10.33% | 4.21% |
Market Context
NOT part of the FinMinutes ScoreThe Score above is what the filing says. Everything in this box is what the crowd says. We keep them apart on purpose — every other site blends the two and calls the result a rating. Demand is real information, but it is information about the market, not about the company, and it changes by the hour while the company does not.
Demand and our read of the filing are broadly in the same territory.
Subscription is low early in a book and high at the end, because most bids arrive in the final hours. A number read on day one says more about the clock than the company — which is precisely why it is not in the Score. GMP is unofficial, unregulated, and easily moved. Neither is a recommendation.
Why the numbers moved, in management’s own words
Taken from the Management’s Discussion and Analysis section of the filing. A number tells you what happened; this is the company’s explanation of why, and whether it calls the cause temporary or structural.
| Metric | Move | Management's stated reason | Type |
|---|---|---|---|
| Purchases of Stock in Trade (FY26 vs FY25) | ↑ 63.5% | Purchases of stock in trade increased significantly due to expanded trading activities in nickel cathodes. | Structural |
| Change in Inventories of Finished Goods (FY26 vs FY25) | ↑ 250.0% | Change in inventories grew due to stocking higher finished rotary nickel screens to meet anticipated customer demand. | Structural |
| Other Expenses (FY26 vs FY25) | ↑ 17.8% | Other expenses increased due to higher power and fuel, factory rent, conveyance, commission, legal and professional fees, and repairs and maintenance. | Structural |
| Finance Costs (FY26 vs FY25) | ↓ 19.6% | Finance costs decreased due to a reduction in interest obligations following scheduled repayments of bank borrowings. | Structural |
| Profit After Tax (FY26 vs FY25) | ↑ 38.4% | Net profit expanded due to higher sales volume, gross margin improvement from favorable nickel prices, and lower finance costs. | Structural |
| Trade Receivables (FY26 vs FY25) | ↑ 24.5% | Trade receivables increased in line with top-line growth and extending calibrated 90-day credit terms to support customer retention. | Structural |
| Inventories (FY26 vs FY25) | ↑ 70.6% | Inventories increased due to higher finished goods and raw material stocking to support anticipated sales requirements. | Structural |
| Operating Cash Flow (FY26 vs FY25) | ↓ 25.4% | Operating cash flow declined as cash was absorbed by working capital increases in trade receivables and inventories. | Structural |
| Long-Term Borrowings (FY26 vs FY25) | ↓ 86.7% | Long-term debt reduced sharply following scheduled repayments of term loans and vehicle loans. | Structural |
| Revenue from Operations (FY25 vs FY24) | ↑ 27.0% | Revenue grew due to full-year benefits of capacity expansion from 60,000 to 88,800 screens and increased nickel cathode trading. | Structural |
| Purchases of Stock in Trade (FY25 vs FY24) | ↑ 1,156.8% | Purchases of stock in trade surged due to the scale-up in nickel cathode trading activities. | Structural |
| Employee Benefits Expense (FY25 vs FY24) | ↑ 21.1% | Employee benefit expenses increased due to operational expansion, wage hikes, and an increase in director remuneration. | Structural |
| Finance Costs (FY25 vs FY24) | ↓ 29.4% | Finance costs decreased due to scheduled repayment of outstanding borrowings. | Structural |
| Profit After Tax (FY25 vs FY24) | ↑ 211.6% | Net profit surged due to top-line volume expansion, improved material cost efficiency from lower global nickel prices, and lower finance costs. | Cyclical |
| Trade Receivables (FY25 vs FY24) | ↑ 46.3% | Trade receivables expanded due to revenue growth and extension of customer credit periods from 72 to 83 days. | Structural |
| Operating Cash Flow (FY25 vs FY24) | ↓ 35.0% | Operating cash flow decreased due to working capital lock-up in trade receivables. | Structural |
| Total Borrowings (FY25 vs FY24) | ↓ 21.8% | Total borrowings decreased due to debt repayments funded from operating cash flows. | Structural |
Headwinds
- Raw material nickel price fluctuations and global supply chain volatility sector persistent
Nickel cathodes represent the primary raw material cost. Volatility in global nickel prices and supply constraints from major exporting nations (e.g., Indonesia) directly impact cost structures and require carrying higher inventory. - Closure of Narol manufacturing unit due to lack of statutory approvals company temporary
Discontinuing manufacturing at the Narol facility (14,400 capacity) on December 15, 2025 due to non-possession of factory licenses/GPCB consents creates potential production bottlenecks until the proposed Sanand expansion is commissioned. - Geographic revenue concentration in Gujarat and the textile industry company
Concentration of sales in Gujarat (58.93% of FY26 revenue) and total dependence on the textile sector exposes operations to localized economic or textile industry slowdowns.
Tailwinds
- Growing domestic and global demand for high-precision rotary nickel screens macro
The Indian rotary nickel screen industry is projected to expand at a CAGR of 12.6% in value from 2020 to 2030, supported by automation in textile printing and growing demand for wide-width fabric printing. - Capacity expansion and product portfolio diversification at Sanand company
Establishing a new manufacturing unit adjacent to the existing Sanand facility will increase capacity from 74,400 to 1,63,200 screens per annum and introduce large-format 1018 mm diameter screens.
| Facility | Period | Utilisation |
|---|---|---|
| Sanand Manufacturing Unit (Sub Plot 189-190, Gallops Industrial Park-II, Sanand) - Installed 74,400 screens | FY26 | 96.5% |
| Sanand Manufacturing Unit (Sub Plot 189-190, Gallops Industrial Park-II, Sanand) - Installed 74,400 screens | FY25 | 80.9% |
| Sanand Manufacturing Unit (Sub Plot 189-190, Gallops Industrial Park-II, Sanand) - Installed 74,400 screens | FY24 | 83.4% |
| Narol Manufacturing Unit (6, Sudama Estate, Narol, Ahmedabad) - Discontinued Dec 15, 2025 | FY26 | 66.7% |
| Narol Manufacturing Unit (6, Sudama Estate, Narol, Ahmedabad) - Installed 14,400 screens | FY25 | 75.8% |
| Narol Manufacturing Unit (6, Sudama Estate, Narol, Ahmedabad) - Installed 14,400 screens | FY24 | 76.7% |
Movements the filing does not explain
- Rapid Scale-Up in Unprocessed Nickel Cathode Trading FY25 & FY26 — Trading in nickel cathodes expanded from Rs. 0.4596 crore in FY24 to Rs. 5.3637 crore in FY25 and Rs. 8.5650 crore in FY26 (16.91% of operational revenue), but MD&A does not explain the strategic rationale for scaling lower-margin raw metal trading alongside manufacturing.
A material movement that management does not address is not a finding on its own. It is a question the filing leaves open, and it is recorded here as one.
Issue Timeline
Dates as carried by the exchange feed. Allotment, refund and credit dates move more often than the open and close dates do.
- Refunds initiated2026-09-30
- Pre Application Start2026-09-23
- Bidding Start2026-09-24
- Bidding End2026-09-28
- Allotment Process Start2026-09-29
- Allotment Finalization2026-09-30
- Listing Day2026-10-01
- Mandate End2026-11-09
Applying, and Who Handles the Allotment
Check allotment status on the registrar’s own portal → We link the registrar directly rather than mirroring the form.
Deep Financials
Revenue, EBITDA and profit are what every listing site prints. Below are the full restated statements as disclosed, the ratios we compute from them, and a DuPont decomposition of the return on equity. A prospectus carries three years, not ten — that is the document’s ceiling, and within it we go as deep as it allows.
Income StatementThe profit and loss as filed, then what we derive from it — kept apart.
Statutory order, exactly as restated in the filing. Finance cost and depreciation sit inside Total Expenses under Ind AS, which is why they are listed among the expense lines here rather than below the total. The expense rows sum to the total. Rows the filing does not disclose separately are omitted rather than left blank.
| Income Statement — as filed (₹ Cr) | FY26 | FY25 | FY24 |
|---|---|---|---|
| Revenue from Operations | 50.73 | 45.34 | 35.71 |
| Other Income | 0.59 | 0.29 | 0.14 |
| Total Income | 51.32 | 45.63 | 35.85 |
| Cost of Materials Consumed | 23.88 | 23.86 | 24.37 |
| Purchases of Stock-in-Trade | 8.26 | 5.05 | 0.40 |
| Changes in Inventories | -1.47 | -0.42 | -0.97 |
| Employee Benefit Expense | 3.93 | 3.54 | 2.92 |
| Finance Cost | 0.73 | 0.91 | 1.29 |
| Depreciation & Amortisation | 1.24 | 1.28 | 1.15 |
| Other Expenses | 6.06 | 5.14 | 4.67 |
| Total Expenses | 42.63 | 39.36 | 33.83 |
| Profit Before Exceptional Items and Tax | 8.69 | 6.27 | 2.01 |
| Profit Before Tax | 8.69 | 6.27 | 2.01 |
| Tax Expense | 2.20 | 1.58 | 0.51 |
| Profit After Tax | 6.48 | 4.69 | 1.50 |
| EPS - Basic | 8.04 | 5.81 | 1.86 |
| EPS - Diluted | 8.04 | 5.81 | 1.86 |
Balance SheetWhat the company owns, owes, and is worth on paper.
| Balance Sheet (₹ Cr) | FY26 | FY25 | FY24 |
|---|---|---|---|
| Share Capital | 8.07 | 1.15 | 1.15 |
| Reserves & Surplus | 8.31 | 8.74 | 4.05 |
| Net Worth | 16.37 | 9.89 | 5.21 |
| Long-term Borrowings | 0.74 | 5.61 | 7.67 |
| Short-term Borrowings | 6.67 | 1.41 | 1.31 |
| Total Borrowings | 7.42 | 7.03 | 8.98 |
| Trade Payables | 4.76 | 4.35 | 4.54 |
| Current Liabilities | 12.48 | 6.69 | 6.59 |
| Total Liabilities | 30.00 | 22.47 | 19.66 |
| Property, Plant & Equipment | 6.73 | 6.57 | 6.77 |
| Capital Work in Progress | 0.00 | 0.00 | 0.00 |
| Intangible Assets | 0.03 | 0.00 | 0.00 |
| Investments | 0.00 | 0.00 | 0.00 |
| Inventories | 6.98 | 4.09 | 4.49 |
| Trade Receivables | 12.78 | 10.26 | 7.02 |
| Cash & Equivalents | 0.30 | 0.24 | 0.29 |
| Current Assets | 21.02 | 14.89 | 11.94 |
| Total Assets | 30.00 | 22.47 | 19.66 |
Cash FlowWhere the cash actually went. Often the most honest statement of the three.
| Cash Flow (₹ Cr) | FY26 | FY25 | FY24 |
|---|---|---|---|
| Net Cash from Operating Activities | 2.85 | 3.81 | 5.86 |
| Capital Expenditure | -1.42 | -1.08 | -2.55 |
| Net Cash from Investing Activities | -2.58 | -1.01 | -2.93 |
| Net Cash from Financing Activities | -0.34 | -2.86 | -2.99 |
| Net Change in Cash | -0.07 | -0.06 | -0.05 |
Ratio AnalysisProfitability, leverage, liquidity, efficiency and earnings quality — computed by us.
Every ratio below is computed by us from the line items the company disclosed — not copied from anywhere. The arithmetic is standard; the point is that somebody actually did it. Blank cells mean the filing did not disclose the inputs, and we would rather show a gap than invent a number.
| Ratio | FY26 | FY25 | FY24 |
|---|---|---|---|
| Profitability | |||
| EBITDA Margin (%) | 20.8 | 18.5 | 12.4 |
| EBIT Margin (%) | 18.3 | 15.7 | 9.2 |
| PAT Margin (%) | 12.8 | 10.3 | 4.2 |
| Return on Equity (%) | 39.6 | 47.4 | 28.9 |
| Return on Capital Employed (%) | 39.6 | 42.4 | 23.3 |
| Return on Assets (%) | 21.6 | 20.9 | 7.6 |
| Leverage | |||
| Debt / Equity (x) | 0.45 | 0.71 | 1.73 |
| Net Debt / EBITDA (x) | 0.67 | 0.8 | 1.95 |
| Interest Coverage (x) | 12.89 | 7.89 | 2.56 |
| Liquidity | |||
| Current Ratio (x) | 1.68 | 2.23 | 1.81 |
| Quick Ratio (x) | 1.12 | 1.61 | 1.13 |
| Efficiency | |||
| Asset Turnover (x) | 1.69 | 2.02 | 1.82 |
| Receivable Days | 92 | 83 | 72 |
| Inventory Days | 50 | 33 | 46 |
| Payable Days | 34 | 35 | 46 |
| Cash Conversion Cycle (days) | 108 | 81 | 72 |
| Quality of Earnings | |||
| Operating Cash Flow / PAT (x) | 0.44 | 0.81 | 3.9 |
| Accruals Ratio (%) | 12.1 | 3.9 | -22.2 |
| Capex / Depreciation (x) | 1.15 | 0.84 | 2.21 |
DuPont DecompositionWhy the return on equity is what it is: margin, efficiency, or leverage.
A headline return on equity tells you what. The DuPont decomposition tells you why — whether the return is earned through margin, through asset efficiency, or simply through leverage. Two companies can post an identical ROE for opposite reasons, and only one of them is safe.
| Component | FY26 | FY25 | FY24 |
|---|---|---|---|
| Net Margin (PAT / Revenue) | 12.8% | 10.3% | 4.2% |
| Asset Turnover (Revenue / Assets) | 1.69x | 2.02x | 1.82x |
| Equity Multiplier (Assets / Net Worth) | 1.83x | 2.27x | 3.78x |
| = Return on Equity | 39.6% | 47.4% | 28.9% |
| Tax Burden (PAT / PBT) | 0.75x | 0.75x | 0.75x |
| Interest Burden (PBT / EBIT) | 0.92x | 0.87x | 0.61x |
| Operating Margin (EBIT / Revenue) | 18.6% | 15.8% | 9.2% |
Computed from the disclosed statements. Where the filing omits an input, the row is left blank rather than estimated.
Quality of EarningsWhat the statements say when you read them against each other.
What the statements say once you read them against each other. These are observations, not verdicts — every one is arithmetic on the numbers the company itself disclosed, and each is stated so you can go and check it in the filing.
- Operating cash flow was only 0.44x reported profit in FY26. Less than half of the profit on the income statement arrived as cash.
- Between FY24 and FY26 revenue grew 42% while profit grew 331%. Profit expanding at several times the rate of revenue is not automatically a concern — operating leverage does exactly this — but it is worth confirming from the filing whether the gap comes from genuine margin expansion or from one-off items.
- Interest coverage was 12.89x in FY26. Debt servicing is comfortably covered by operating profit.
Forensic ModelsBeneish, Altman and Piotroski — plus our own final-year check.
Beneish M-Score
M = -1.42An eight-variable model built to detect earnings manipulation, and built to run on exactly two consecutive years — which is what a prospectus gives us. It belongs here more than anywhere: a company about to list has the maximum possible incentive to have dressed up the very years it is about to show you. A score above −1.78 is the threshold at which the model says the accounts merit a closer look. It is a screening signal, not an accusation, and it was calibrated on listed companies elsewhere. Read the eight components, not just the total.
| Component | Value | What it captures |
|---|---|---|
| DSRI Days Sales in Receivables Index (Receivables_t / Sales_t) / (Receivables_t-1 / Sales_t-1) | 1.113 | Above 1 means receivables grew faster than sales. Revenue may be being recognised ahead of collection. |
| GMI Gross Margin Index GrossMargin_t-1 / GrossMargin_t | 0.895 | Above 1 means margins deteriorated. A firm with worsening prospects has more incentive to manipulate. |
| AQI Asset Quality Index AQ_t / AQ_t-1, where AQ = 1 - (CurrentAssets + PPE) / TotalAssets | 1.676 | Above 1 means a rising share of assets is soft (neither current nor fixed) — capitalised costs can hide here. |
| SGI Sales Growth Index Sales_t / Sales_t-1 | 1.119 | Growth is not manipulation. But high-growth firms face more pressure to keep the streak going. |
| DEPI Depreciation Index DepRate_t-1 / DepRate_t, where DepRate = Dep / (Dep + PPE) | 1.045 | Above 1 means assets are being depreciated more slowly — a quiet way to lift reported profit. |
| SGAI SG&A Index (SGA_t / Sales_t) / (SGA_t-1 / Sales_t-1), SGA proxied as employee cost + other expenses | 1.028 | A proxy, because filings rarely break out SG&A cleanly. Read it as a direction, not a precise figure. |
| LVGI Leverage Index Leverage_t / Leverage_t-1, where Leverage = (CurrentLiab + LongTermDebt) / TotalAssets | 0.806 | Above 1 means leverage rose. Debt covenants create pressure to hit numbers. |
| TATA Total Accruals to Total Assets (PAT - CashFromOperations) / TotalAssets | 0.1212 | The gap between reported profit and cash generated. The single heaviest term in the model — and the one that catches profit that never became cash. |
This score is driven primarily by the sales-growth term (SGI). Growth is the one variable in this model that is not itself a manipulation signal — the model treats rapid growth as pressure to keep the streak going, not as evidence of anything. A company that grew revenue several-fold will read high here for that reason alone. The variable that speaks to manipulation directly is TATA (accruals — profit that did not become cash); read that one, and the receivables trend, rather than the headline M.
M = -1.42, above the −1.78 threshold. On this model the accounts merit closer reading. That is a prompt to go to the filing, not a conclusion about it.
Altman Z″-Score (emerging markets)
Z″ = 8.7 · SafeA distress-prediction model. We use the Z″ variant deliberately: the original Z was calibrated on American manufacturers and misleads badly on Indian services companies. Above 2.6 is the safe zone, 1.1 to 2.6 is grey, below 1.1 is the distress zone. Like every model of its kind it is a screen, not a prophecy.
| X1 — Working Capital / Total Assets | 0.284 |
| X2 — Retained Earnings / Total Assets | 0.277 |
| X3 — EBIT / Total Assets | 0.314 |
| X4 — Net Worth / Total Liabilities | 0.546 |
| Z″ = 3.25 + 6.56·X1 + 3.26·X2 + 6.72·X3 + 1.05·X4 | 8.7 |
Piotroski F-Score (adapted)
5 / 8Nine yes-or-no tests of fundamental strength — except we run eight. One of the original nine asks whether the company issued new shares, which is plainly absurd to ask of a company whose entire purpose at this moment is to issue shares. We drop that test, and we would rather tell you that than quietly fudge it.
- ✓Positive return on assets
- ✓Positive operating cash flow
- ✓Return on assets improving
- ✗Cash flow exceeds profit (quality of earnings)
- ✓Long-term leverage decreasing
- ✗Current ratio improving
- ✓Gross margin improving
- ✗Asset turnover improving
The Final-Year Check
oursNot from any textbook. The hockey stick in the last year before a filing is the oldest pattern in this business, and nobody publishes it. So we measure it: how the final disclosed year compares with the years behind it. Real acceleration looks exactly the same on the page as a flattering one — which is precisely why it is worth naming rather than assuming either way.
- Cash conversion fell sharply in the final year: operating cash flow was 0.44x profit in FY26, against 0.81x in FY25. Profit rose; the cash behind it did not follow at the same rate.
Ratios Nobody Prints
- Contingent liabilities / Net worth: 2%
Contingent liabilities of 0.33 cr against a net worth of 16.37 cr — 2% of what the company is worth on paper. These are obligations that sit off the balance sheet but could land on it. What they consist of matters as much as the size: a corporate guarantee to a subsidiary is a different animal from a disputed tax demand, and the filing says which. - Related-party revenue / Total revenue: 1.4%
1.4% of revenue in FY26 came from entities connected to the promoters. Revenue you sell to yourself is not the same as revenue you won in the market. - Cash / Short-term borrowings: 0.05x
Short-term borrowings of 6.67 cr against cash of 0.30 cr. Debt that must be refinanced within a year is only comfortable while lenders stay comfortable. - Promoter remuneration / PAT: 12.8%
Managerial remuneration to the promoter group was 0.83 cr against a profit of 6.48 cr. This is a legitimate cost — but it is also a route by which value leaves a company before it ever reaches a minority shareholder.
The Formula NotebookEvery number above, with the working shown. Check us.
Every number we publish, with the working shown. The formula, the same formula with this company’s actual figures put into it, the answer, and what it is for. Check us. That is the point.
PAT ÷ Net Worth6.48 ÷ 16.37What the company earned on the money shareholders have in it. The headline measure of return — and the one the DuPont section takes apart.
EBIT ÷ (Net Worth + Total Borrowings)9.42 ÷ (16.37 + 7.42) = 9.42 ÷ 23.79Return on ALL the capital in the business, borrowed as well as owned. Unlike ROE, it cannot be flattered by taking on debt.
EBITDA ÷ Revenue10.66 ÷ 50.73Operating profitability before the effects of debt, tax and depreciation. What the business earns from the act of trading.
Total Borrowings ÷ Net Worth7.42 ÷ 16.37How much the company has borrowed against what it owns. High is not automatically bad — ask whether the borrowing is being serviced comfortably.
EBIT ÷ Finance Cost9.42 ÷ 0.73How many times over operating profit covers the interest bill. Below about 2x, a meaningful share of what the business earns is going to lenders rather than owners.
(Trade Receivables ÷ Revenue) × 365(12.78 ÷ 50.73) × 365How long the company waits to be paid. Rising receivable days mean revenue is being booked faster than it is collected — which is where a great many accounting problems begin.
Inventory Days + Receivable Days − Payable Days50 + 92 − 34How long cash is tied up in the operating cycle before it comes back. The longer it is, the more working capital the business must fund.
Cash from Operations ÷ PAT2.85 ÷ 6.48Did the profit turn into cash? Profit is an opinion; cash is a fact. When this sits well below 1x for long, the two are drifting apart, and the filing is where you find out why.
(PAT − Cash from Operations) ÷ Total Assets(6.48 − 2.85) ÷ 30.00 = 3.64 ÷ 30.00The share of reported profit that exists on paper rather than in the bank. It is also the heaviest single term in the Beneish model, for good reason.
Price × Post-issue Shares₹64.00 × 11,067,500 sharesWhat the whole company is being valued at, if the issue prices at the top of the band.
Market Cap + Total Borrowings − Cash70.83 + 7.42 − 0.30What it would actually cost to buy the whole business: you take on its debt and you get its cash. This is the number a buyer cares about, and it is the reason a P/E on its own can mislead.
Enterprise Value ÷ EBITDA77.95 ÷ 10.66The multiple that includes debt. Two companies on the same P/E — one debt-free, one heavily borrowed — are not the same investment, and only this number tells you so.
Market Cap ÷ PAT70.83 ÷ 6.48The familiar multiple. Useful, but blind to debt — read it alongside EV/EBITDA, never instead of it.
Offer price ÷ EPS, on pre- and post-issue share counts₹8.04 EPS pre → ₹5.86 EPS postThe fresh issue expands the share count by 27.11%, so the same profit is spread across more shares. The multiple quoted in the filing is struck on pre-issue earnings; the one on the right is what a buyer actually holds on listing day. The gap closes only if the new capital earns a return, which has not happened yet.
EBIT × (1 − tax rate) ÷ (Net Worth + Debt − Cash)NOPAT ÷ Invested CapitalWhat the business earns on the capital actually at work in it. We do not compare this to a cost of capital: that would need a beta, an unlisted company has none, and inventing one would be theatre.
P/E ÷ trailing PAT growth (%)10.93 ÷ 38.4%PEG was designed for FORWARD growth. This one uses TRAILING growth, because that is all a prospectus gives us — and the final year before an IPO is very often the best year the company will have for a while. A low PEG here may say more about the timing of the filing than about the price. We show it because it was asked for; we show the growth denominator beside it so it cannot mislead you quietly.
Workspace
The numbers are already loaded. Move the offer price and watch every multiple move with it. Set your own growth and margin and see what they imply two years out. These are your assumptions, not our forecast — we have no view on what this company will earn, and the moment we published one we would be doing something we are not registered to do. What we can do is put the arithmetic in front of you and get out of the way.
Price defaults to the top of the band. Margin defaults to what the company actually reported in FY26.
Projections are arithmetic on the inputs you typed. They are not a forecast, not a recommendation, and not a view on whether this offer is worth taking. Educational only.
Institutional Alpha: DRHP Deep Dive
Closure of Narol Unit Highlighted Past Environmental and Licensing Non-Compliance
Operations at the Narol manufacturing unit (14,400 screens capacity) were discontinued on December 15, 2025 due to non-possession of statutory factory licenses and GPCB consents. Production was shifted to the Sanand facility, which operated at 96.51% capacity utilization in FY26.
Source: p.18, 110, 115Promoter Demand-Repayable Debt Accounts for 45.84% of Corporate Debt
Unsecured loans from promoter family members total Rs. 3.3999 crore out of total borrowings of Rs. 7.4175 crore in FY26. All promoter unsecured loans are repayable on demand, presenting a refinancing risk if recalled.
Source: p.173, 194Decaying Cash Flow Conversion Despite 331% Net Profit Expansion Over Two Years
While restated PAT expanded from Rs. 1.5036 crore in FY24 to Rs. 6.4833 crore in FY26, operating cash flows dropped from Rs. 5.8645 crore to Rs. 2.8464 crore over the same period. Working capital lock-up in trade receivables (Rs. 12.7775 crore, 92 days) and inventories (Rs. 6.9840 crore, 114 days) absorbed operating cash.
Source: p.80, 162, 165, 223Shareholding, Syndicate & Leadership
Leadership & Skin in the Game
Leadership: Ghanshyambhai Ranchhodbhai Thakkar
Litigation: GST DRC-01A intimation dated July 14, 2026 involving Rs. 0.3338 crore (Rs. 33.38 lakhs) against the Company for alleged excess/wrong ITC availment for FY 2022-23. Commercial suit filed by Company against Star Décor Processors involving Rs. 0.1483 crore (Rs. 14.83 lakhs). Direct tax proceeding involving Rs. 0.0004 crore against Promoter/Director.
Peers & Valuation
| Company | P/E | P/B | RoE | Margin |
|---|---|---|---|---|
| Stovec Industries Limited | 50.54 | — | 5.37 | — |
At the ₹64 upper band, the issue is priced at 8.0x earnings — a 84% discount to the peer median of 50.5x. This is the arithmetic of the price band against the peers the filing itself lists; it is not a view on whether the offer is worth taking.
🔍 Forensic Findings — What the Footnotes Say
Findings from across the filing — the notes, MD&A, related-party disclosures, contingent liabilities, CARO and litigation, alongside the risk section itself. Each carries where it was found, so you can see which were buried and which were disclosed. Findings marked derived are computed from the filed numbers against a stated rule, shown beside them.
On September 22, 2025 (12 months prior to the offer filing), the company issued 6,915,000 bonus shares in a 6:1 ratio at Rs. 0.00 per share to promoter group shareholders. This bonus allotment expanded pre-issue capital from 1,152,500 shares to 8,067,500 shares, significantly reducing insider average acquisition cost ahead of the IPO.
p.50, 63, 133Manufacturing operations at the Narol, Ahmedabad facility (14,400 screens per annum installed capacity) were discontinued with effect from December 15, 2025 due to lack of statutory factory licenses and GPCB consents.
p.18, 110, 115Unsecured loans from promoter family members (Ghanshyambhai Thakkar Rs. 1.4357 crore, Kunal Thakker Rs. 0.7796 crore, Preksha Thakkar Rs. 0.5202 crore, Bhartiben Thakkar Rs. 0.6646 crore) total Rs. 3.3999 crore, representing 45.84% of total borrowings (Rs. 7.4175 crore), all repayable on demand.
p.173, 194Restated PAT grew 38.38% in FY26 to Rs. 6.4833 crore (up from Rs. 4.6853 crore in FY25 and Rs. 1.5036 crore in FY24). However, Cash Flow from Operations (CFO) declined 25.35% to Rs. 2.8464 crore in FY26 (from Rs. 3.8131 crore in FY25 and Rs. 5.8645 crore in FY24), absorbed by working capital expansion in trade receivables (Rs. 12.7775 crore) and inventories (Rs. 6.9840 crore).
p.80, 162, 165, 223A GST DRC-01A intimation dated July 14, 2026 involving Rs. 0.3338 crore (Rs. 33.38 lakhs) was issued to the company for alleged excess or incorrect Input Tax Credit (ITC) availment during FY 2022-23.
p.229The company benchmarks its performance against single listed peer Stovec Industries Limited (P/E 50.54x), which is a mainboard-listed company with a broader business model encompassing rotary printing systems, digital printing machinery, and consumables.
p.84, 87, 88Gujarat generated 58.93% of total revenue from operations in FY26 (63.85% in FY25 and 62.42% in FY24), reflecting concentrated exposure to the local Gujarat textile processing cluster.
p.20, 112GST DRC-01A intimation dated July 14, 2026 involving Rs. 0.3338 crore (Rs. 33.38 lakhs) against the Company for alleged excess/wrong ITC availment for FY 2022-23. Commercial suit filed by Company against Star Décor Processors involving Rs. 0.1483 crore (Rs. 14.83 lakhs). Direct tax proceeding involving Rs. 0.0004 crore against Promoter/Director.
p. 9, 10, 49, 158 and 1 moreShort-term borrowings of ₹6.67 cr against cash of ₹0.30 cr. Debt that must be refinanced within a year is comfortable only while lenders stay comfortable.
rule: cash < 0.5x short-term debtCompany's Claims vs Reality
We stress-test each claim against the filing's own data.
Existing Sanand unit operated at 96.51% capacity utilization in FY26 (80.93% in FY25), demonstrating near-full plant utilization that supports physical capacity expansion.
p.76, 78, 115, 116Restated inventory jumped 70.57% to Rs. 6.98 crore in FY26 and trade receivables expanded to Rs. 12.78 crore (92 receivable days), supporting the operational requirement for working capital funding.
p.78, 80, 162Sanand unit capacity was expanded to 74,400 screens per annum, compensating for the 14,400 capacity lost from the Narol shutdown, though Sanand utilization reached 96.51% in FY26.
p.18, 110, 115Live Subscription Status
Allotment Status
Check your allotment on the registrar's portal → Registrar: Bigshare Services
Allotment is decided by the registrar, not by us and not by the exchange. In an oversubscribed retail book, allotment is by lottery, so a large application does not improve your odds beyond one lot. If money stays blocked after the refund date, the mandate expiry (09 Nov 2026) is the date to raise with your bank.
Analyst Q&A: Burning Questions
Facts from the filing. No recommendation — that layer arrives once our Research Analyst registration is live.
How are the fresh issue IPO proceeds allocated across new plant construction, working capital, and general corporate purposes?
Fresh issue proceeds are allocated as: Rs. 9.9046 crore for funding capital expenditure towards setting up a new manufacturing facility at Sanand, Gujarat, Rs. 6.0000 crore for funding incremental working capital requirements, and the balance for General Corporate Purposes (capped at 25%).
p.76, 77, 78What is the promoters' shareholding pre-issue, and what is their acquisition cost history?
Promoters Ghanshyambhai Thakkar, Kunal Thakker, Bhartiben Thakkar, and Preksha Thakkar hold 85.23% pre-issue equity (6,876,250 shares). A 6:1 bonus issue of 6,915,000 shares in September 2025 expanded insider shareholding at Rs. 0.00 per share, following rights allotments between Rs. 17.00 and Rs. 25.00 per share.
p.49, 50, 52, 62What are the key related-party transactions, promoter loans, and commercial dependencies?
Sales of finished goods to promoter entity Roopa Engineers totaled Rs. 0.7340 crore in FY26. Unsecured loans from promoter family members total Rs. 3.3999 crore (45.84% of total borrowings of Rs. 7.4175 crore), all repayable on demand. Rent paid to promoter directors and group entities totaled Rs. 0.0387 crore. Promoters provided personal guarantees covering bank facilities.
p.173, 194, 205How did operating cash flow perform relative to restated net profits over FY24 to FY26?
Restated PAT expanded from Rs. 1.5036 crore in FY24 to Rs. 4.6853 crore in FY25 and Rs. 6.4833 crore in FY26. Operating cash flow (CFO) remained positive across all three years (+Rs. 5.8645 crore in FY24, +Rs. 3.8131 crore in FY25, +Rs. 2.8464 crore in FY26), though declining 51.47% over the period due to working capital absorption in trade receivables (Rs. 12.78 crore) and inventory (Rs. 6.98 crore).
p.80, 162, 165, 223What secretarial, statutory compliance, litigation, and tax findings exist for the company?
The Narol manufacturing unit was shut down in December 2025 due to lack of statutory factory licenses and GPCB consents. A GST DRC-01A intimation involving Rs. 0.3338 crore for wrong ITC availment is pending. Disclosed instances of administrative delays in statutory payments (PF, ESIC, GST). Statutory auditor M/s G M C S & Co., Chartered Accountants, has served continuously without auditor change.
p.18, 158, 229, 232What are the application lot terms, retail ticket requirements, market maker details, and exit constraints for public investors?
The offer is listed on BSE SME with a minimum retail application requirement of 2 lots. Trading occurs strictly in standardized market lots, and because lots are indivisible, partial exit or fractional lot trading is impossible. B.N. Rathi Securities Limited is the Market Maker with 210,000 reserved shares (7.00%) and a mandatory 3-year obligation period. Standard SME 5% price circuit limits apply.
p.1, 7, 59, 172, 175What Earlier Investors Paid
Early capital takes real risk and is fairly rewarded for it — a large multiple built over many years is normal. What deserves a closer look is a steep step-up in a short window: a round priced cheaply only months before the offer.
| Shareholder | Priced at | When | vs IPO price |
|---|---|---|---|
| Kunal Ghanshyambhai Thakker & Kirankumar Vadilal Shah | ₹10.00 | 2013-04-12 | 6.4x |
| An early round from roughly 14 years ago, at roughly 6.4x the offer price. A multiple of that size built over that long reflects the risk taken and the time elapsed. That is the normal reward for early capital, not a red flag. | |||
| Existing Shareholders | ₹17.00 | 2013-08-27 | 3.8x |
| An early round from roughly 13 years ago, at roughly 3.8x the offer price. A multiple of that size built over that long reflects the risk taken and the time elapsed. That is the normal reward for early capital, not a red flag. | |||
| Existing Shareholders | ₹17.00 | 2014-09-23 | 3.8x |
| An early round from roughly 12 years ago, at roughly 3.8x the offer price. A multiple of that size built over that long reflects the risk taken and the time elapsed. That is the normal reward for early capital, not a red flag. | |||
| Existing Shareholders | ₹17.00 | 2016-02-19 | 3.8x |
| An early round from roughly 11 years ago, at roughly 3.8x the offer price. A multiple of that size built over that long reflects the risk taken and the time elapsed. That is the normal reward for early capital, not a red flag. | |||
| Existing Shareholders | ₹17.00 | 2017-09-27 | 3.8x |
| An early round from roughly 9 years ago, at roughly 3.8x the offer price. A multiple of that size built over that long reflects the risk taken and the time elapsed. That is the normal reward for early capital, not a red flag. | |||
| Existing Shareholders | ₹17.00 | 2018-05-15 | 3.8x |
| An early round from roughly 9 years ago, at roughly 3.8x the offer price. A multiple of that size built over that long reflects the risk taken and the time elapsed. That is the normal reward for early capital, not a red flag. | |||
| Existing Shareholders | ₹22.00 | 2019-06-04 | 2.9x |
| An early round from roughly 7 years ago, at roughly 2.9x the offer price. A multiple of that size built over that long reflects the risk taken and the time elapsed. That is the normal reward for early capital, not a red flag. | |||
| Existing Shareholders | ₹25.00 | 2021-07-10 | 2.6x |
| An early round from roughly 5 years ago, at roughly 2.6x the offer price. A multiple of that size built over that long reflects the risk taken and the time elapsed. That is the normal reward for early capital, not a red flag. | |||
| Existing Shareholders | — | 2025-09-22 | — |
Prices are as stated in the filing’s allotment history and are not adjusted for later bonus issues or share splits. Where a company has issued bonus shares, the multiples above understate the true return and can even read as losses. Adjusting for that is on our list; until it is done we would rather show the raw disclosure and tell you its limits than publish a confident number that is wrong.
Lock-in Expiry Calendar
Shares held before the IPO cannot be sold immediately; they unlock in tranches. When a tranche unlocks, more shares become eligible to trade. Retail investors are frequently caught unaware by these dates. The schedule below follows from the listing date; quantities are shown only where the filing discloses them.
- 01 Oct 2029promoter3 years2,220,000 shares (20.06% of total)
- 01 Oct 2028promoter2 years2,327,875 shares (21.03% of total)
- 01 Oct 2027promoter1 year2,327,875 shares (21.03% of total)
- 01 Oct 2027promoter group and public1 year1,191,750 shares (10.77% of total)
An unlock means more shares may be sold — not that they will be, and not that the price will move. We state the dates; what you do with them is your call.
Educational, grounded entirely in the company's filings (DRHP/RHP). Not investment advice. FinMinutes does not provide buy/sell recommendations.