Kheria Autocomp Limited's SME IPO opened on September 17, 2024, and closed on September 20, 2024, with shares subsequently listing on NSE Emerge.18 September 2026SME IPO · 6 min read

Kheria Autocomp Ltd. — Pre-IPO Research Report

Kheria Autocomp Limited is an Indian manufacturer of sheet metal components, welded assemblies, and sub-assemblies, primarily serving the automotive industry. The company recently concluded its SME IPO, making its financials and operational details publicly accessible for investor review.

Founded

2010

Headquarters

Gurugram, Haryana, India

Listing Exchange

NSE Emerge

Lead Manager

Gretex Corporate Services Limited (per the DRHP filed with SEBI)

Registrar

Bigshare Services Pvt Ltd (per the DRHP filed with SEBI)

What the company is (and how it makes money)

Kheria Autocomp manufactures a range of sheet metal components, including press parts, fabricated parts, and assemblies.
The company primarily caters to the automotive sector, supplying components for two-wheelers, three-wheelers, and commercial vehicles.
Beyond automotive, it also serves other industries requiring precision sheet metal fabrication.
Revenue is generated through the sale of these manufactured components to original equipment manufacturers (OEMs) and other industrial clients.
The manufacturing process involves various stages like stamping, welding, fabrication, and surface finishing.

Financial snapshot (officially disclosed only)

For the nine months ended December 31, 2023, the company reported revenue from operations of ₹10,210.82 lakhs (per the RHP filed with SEBI).
Profit After Tax (PAT) for the nine months ended December 31, 2023, was ₹592.59 lakhs (per the RHP filed with SEBI).
For the fiscal year ended March 31, 2023, revenue from operations stood at ₹13,445.89 lakhs (per the RHP filed with SEBI).
PAT for the fiscal year ended March 31, 2023, was ₹723.27 lakhs (per the RHP filed with SEBI).
Investors should refer to the full RHP on the SEBI website for detailed financial statements, including balance sheets and cash flow statements, to understand the company's financial health and trajectory.

The moat

Established relationships with automotive OEMs, built over years of consistent supply, can create a barrier to entry for new players.
Specialized manufacturing capabilities and adherence to stringent quality standards required by the automotive industry can foster client stickiness.
Operational efficiency and cost management in a competitive manufacturing sector can provide a competitive edge.
A diversified product portfolio within sheet metal components reduces reliance on a single product line or vehicle segment.

Where it is in the IPO pipeline

Kheria Autocomp Limited filed its Draft Red Herring Prospectus (DRHP) with SEBI in May 2024.
The IPO was a fresh issue of 49,92,000 equity shares, with no Offer For Sale (OFS) component, meaning all proceeds went to the company.
The company intended to utilize the net proceeds from the fresh issue for funding capital expenditure, meeting working capital requirements, and general corporate purposes (per the DRHP filed with SEBI).
The IPO was an SME listing on the NSE Emerge platform, targeting small and medium-sized enterprises.

What most investors miss

**Customer Concentration Risk:** The DRHP often details revenue contribution from top customers. Investors should scrutinize whether a significant portion of revenue comes from a few key OEMs, which could pose a risk if those relationships change.
**Raw Material Volatility:** As a sheet metal manufacturer, Kheria Autocomp's profitability is highly sensitive to the prices of steel, aluminum, and other metals. The company's ability to pass on these costs to customers or its hedging strategies are crucial.
**Working Capital Cycle:** In B2B manufacturing, extended credit periods to customers (debtor days) and inventory management are critical. A detailed analysis of the working capital cycle from the RHP can reveal cash flow efficiency.
**Impact of Automotive Sector Shifts:** The Indian automotive industry is undergoing transitions, including the push for electric vehicles (EVs). Investors should assess how Kheria Autocomp's current product mix and future plans align with these evolving trends.
**Capacity Utilization and Expansion:** The DRHP will contain details on current manufacturing capacity and utilization rates. Understanding planned capital expenditure and its potential impact on future capacity and revenue growth is key.
**Related Party Transactions:** Scrutiny of related party transactions disclosed in the RHP is essential to ensure they are at arm's length and do not disadvantage the company or minority shareholders.

Red flags and what to scrutinise

**Dependency on OEM Cycles:** The company's performance is intrinsically linked to the production cycles and demand from its automotive OEM clients, making it vulnerable to industry slowdowns.
**Intense Competition:** The sheet metal fabrication industry in India is fragmented, with competition from both organized and unorganized players, which can pressure margins.
**Regulatory and Environmental Compliance:** Adherence to evolving environmental norms and manufacturing regulations in India can incur additional costs or require significant operational adjustments.
**Technology Obsolescence:** While traditional, the manufacturing sector requires continuous investment in machinery and technology. Failure to upgrade could lead to inefficiencies or inability to meet advanced client requirements.
**Litigation and Contingent Liabilities:** The RHP lists any ongoing legal proceedings or contingent liabilities, which could potentially impact the company's financial health if they materialize.
**Promoter Shareholding and Lock-in:** While the IPO was a fresh issue, understanding the promoter shareholding pattern pre and post-IPO, and the lock-in periods, is important for assessing long-term commitment and potential future supply of shares.

How to evaluate it (a diligence checklist)

Examine the company's customer contracts and the average tenure of relationships with its top clients to assess customer stickiness.
Analyze the trend of raw material costs versus the company's average selling prices to understand its pricing power and margin resilience.
Review the utilization of IPO proceeds as stated in the RHP, particularly for capital expenditure and working capital, to track future growth drivers.
Assess the company's debt levels and debt-to-equity ratio from the financial statements to gauge its financial leverage and risk.
Study the management discussion and analysis (MD&A) section in the RHP for insights into strategic priorities, risk mitigation, and future outlook.
Compare Kheria Autocomp's key financial ratios (e.g., EBITDA margins, RoE, RoCE) with those of its listed peers in the Indian auto component sector, if available, to benchmark performance.

Official references

SEBI - Draft offer documents & public issues SEBI - Securities and Exchange Board of India NSE India - listings & filings BSE India - listings & filings MCA - company master data & financial filings

The company's Red Herring Prospectus (RHP) on the SEBI website
Kheria Autocomp Limited's official website for product and operational details
NSE Emerge platform's listing documents for Kheria Autocomp Limited

Frequently asked questions

What was the purpose of Kheria Autocomp's IPO?

The IPO was a fresh issue of shares intended to fund capital expenditure, meet working capital requirements, and for general corporate purposes, as stated in the company's RHP.

Is Kheria Autocomp's business primarily dependent on the automotive sector?

Yes, Kheria Autocomp primarily manufactures sheet metal components, welded assemblies, and sub-assemblies for the automotive industry, serving two-wheelers, three-wheelers, and commercial vehicles.

Where can I find the official financial details of Kheria Autocomp?

Official financial details, including revenues, profits, and balance sheet information, are available in the company's Red Herring Prospectus (RHP) filed with SEBI and on the NSE Emerge website.

What kind of components does Kheria Autocomp manufacture?

The company manufactures various sheet metal components, including press parts, fabricated parts, and welded assemblies, used across different industries, with a primary focus on automotive.

Did the IPO include an Offer For Sale (OFS) component?

No, Kheria Autocomp's IPO was entirely a fresh issue of equity shares, meaning the proceeds went directly to the company, and there was no Offer For Sale by existing shareholders.

This report is prepared by Neoma Capital for information and investor-education purposes only. It is not investment advice, a recommendation, or an offer to buy or sell any security. Unlisted and pre-IPO shares are illiquid, high-risk and may never list. Any figures mentioned are only those officially disclosed by the company, SEBI, the stock exchanges or the MCA, and may change. Neoma Capital does not guarantee accuracy or completeness. Verify everything independently from official sources and consult a SEBI-registered adviser before making any decision. Neoma Capital, 18 September 2026.