The India-based small-cap is a critical player, manufacturing and servicing shipboard machinery, critical component systems, and test facilities for submarines and surface ships of the Indian Navy. It is also involved in the designing, manufacturing, and servicing of equipment and systems used in the nuclear and clean energy industries.
The company was incorporated in 2012 to support the growing needs of the Indian Navy, and Mazagaon Dockyard and Shipbuilders Ltd. (MDL). It has its manufacturing unit located in Khopoli.
CFF Fluid Control Limited IPO Details
The CFF Fluid Control IPO, worth Rs. 85.80 crore, will open for bidding on May 30, 2023. The fixed-price IPO shares will be available at Rs. 165 per share. The minimum order size for CFF Fluid Control Ltd. is one lot with 800 shares. Retail investors can bid for the offer from May 30 to June 2, 2023.
CFF Fluid Control Limited IPO Objectives
The following are the main objectives of the CFF Fluid Control Limited IPO.
- To meet the company’s working capital requirements and for general corporate purposes
- To repay specific market borrowing
- To purchase new machines and Towed Wire Antenna (TWA) technology
Should you invest in CFF Fluid Control Limited?
You can evaluate the IPO based on the factors below:
- The company’s promoters have 20+ years of experience in the domain.
- It is a robust book order (around 90% of the total order value) coming from the Indian Navy.
- As the government intensifies efforts to improve self-reliance in defence equipment and machines, the importance of such companies will increase.
Competitive Peers
Other players in the domain recognised in the company’s DRHP are Data Patterns (India) Ltd., MTAR Technologies, Paras Defence and Space Technologies, and Bharat Electronics Ltd.
Highlights of CFF Fluid Control Ltd.
- The company’s revenue from operations had grown at a 21.60% CAGR from FY2020 to FY2022.
- It managed to book continuous profit since its inception and demonstrated a strong financial track record.
CFF Fluid Control Company Financials
| Particulars | Period ending on December 31, 2022 | Year ending on March 31, 2022 |
|---|---|---|
| Revenue from Operations | 5,077.32 | 4,698.77 |
| Profit After Tax (PAT) | 718.11 | 779.51 |
| PAT Margin | 14.12% | 16.54% |
| EBITDA | 1,230.42 | 1,250.90 |
| EBITDA Margin | 24.23% | 26.81% |
| EPS | 5.03 | 5.46 |
Know before investing
Strengths
3Experienced promoters and a team of experienced management.
Robust financial performance and track record.
Visible growth along with a robust order book position.
Risks
3The company promoters are involved in certain legal cases, and the verdicts in these cases might impact the brand image of the company.
It is dependent on Indian Navy projects to keep earning revenue.
It doesn’t enter into long-term contracts with suppliers, which might affect future prices and raw material supply.
