IPO Analysis of Thaai Casting Ltd

What Thaai Casting Ltd do?

Thai Casting is automobile auxiliary firm that specializes in precision machining of ferrous & non-ferrous materials, induction heating & quenching, & high-pressure die casting.

Thaai Casting Ltd has three Business Verticals:

Thaai Casting Ltd Financial Analysis 

Analysis

Assets

1. Assets of Thaai Casting Ltd have shown substantial growth over period, increasing about 7 fold by September 2023.
2. This indicates robust expansion & investment in company's operations, potentially to support its growth initiatives/acquisitions.

Revenue    

1. Revenue has also witnessed steady growth over period, with significant increase nearly doubled by September 2023.
2. This consistent revenue growth suggests that company's products/services are in demand & that it has been successful in expanding its market presence/improving its sales strategies.

Profit After Tax (PAT)   

1. PAT has shown remarkable growth, rising over and above 20 times by September 2023.
2. This substantial increase in profitability reflects company's ability to effectively manage its costs, improve operational efficiency, & generate higher returns on its investments.

Net Worth   

1. Net worth of Thaai Casting Ltd has experienced significant growth, increasing nearly 10 times by September 2023.
2. This indicates strong financial health & accumulation of retained earnings, which can be reinvested into business for further growth.

Total Borrowing  

1. Total borrowing has increased substantially over period, rising over 5 folds by September 2023.
2. While increased borrowing can provide necessary funds for expansion/investment, it also raises concerns about company's debt levels & its ability to manage debt repayment obligations.

Thaai Casting Ltd ‘s Key Performance Indicator

(source:DRHP)

Analysis

1. Revenue from Operations

Thaai Casting Ltd has demonstrated significant growth in revenue from operations over past few years, indicating strong sales performance & potentially expanding market presence.

2. Growth in Revenue from Operations (%)

Growth rate in revenue from operations fluctuates, with particularly high growth in FY 2021-22 followed by decrease in FY 2022-23. This could suggest varying market conditions/changes in business strategies.

3. Total Income

Total income follows similar trend to revenue from operations, indicating that company's overall income is primarily driven by its operational activities.

4. EBITDA (Earnings Before Interest, Taxes, Depreciation, & Amortization)

EBITDA has shown substantial growth over years, reflecting improved operational efficiency & profitability. Increasing trend is positive sign for investors, indicating better cost management & revenue generation.

5. EBITDA Margin (%)

While EBITDA margin fluctuates, general trend shows improvement over years. Higher EBITDA margins indicate increased profitability relative to revenue, reflecting better operational performance.

6. Net Profit for Year / Period

Thaai Casting Ltd has experienced significant growth in net profit, indicating strong bottom-line performance. This growth suggests effective management of expenses & increased profitability over time.

7. PAT Margin (%)

PAT margin has also improved over years, indicating that company is becoming more efficient in generating profits from its operations.

8. Return on Net Worth

Return on net worth has shown positive trend, indicating that Thaai Casting Ltd is generating higher profits relative to its shareholders' equity. This suggests effective utilization of shareholder funds to generate returns.

9. ROCE

It has increased over years, indicating efficiency improved in creating more profits from capital investments of company.

10. D/E Ratio

D/E ratio has fluctuated but remained relatively high, indicating significant reliance on debt financing. While high leverage can amplify returns, it also increases financial risk for investors.

Conclusion

Thaai Casting has demonstrated strong growth in key financial metrics over past few years, indicating improving operational performance & profitability. However, investors should carefully consider company's high debt levels & fluctuations in growth rates before making investment decisions.

Overall, Thaai Casting Ltd has demonstrated impressive growth in key financial metrics such as revenue, profitability, & net worth over given period. Investors should conduct further due diligence, considering both company's growth potential & its financial leverage, before making investment decisions in IPO.