- Our view
- May Subscribe
- Market cap then
- ~INR 161.87 Cr.
- Price band
- INR 227 to 239 per share
Admach Systems Ltd designs and manufactures custom industrial machinery, automation systems and non-destructive testing equipment. Minerva Capital Research Solutions assigns a May Subscribe rating to its IPO, citing the order book, planned in-house manufacturing and exports, while noting margin, working-capital and customer-concentration risks.
About Admach Systems
Incorporated in 2008 in Pune, Admach Systems designs and manufactures custom industrial machinery, automation systems and non-destructive testing (NDT) equipment. It builds machines to customer requirements rather than selling standard products. Its integrated manufacturing facility in Nandoshi, Pune, covers 75,347 sq. ft. and includes fabrication, machining, assembly and testing.
Admach Systems IPO Details
| Particulars | Details |
|---|---|
| Price Band (INR) | 227 to 239 |
| Face Value (INR) | 10 |
| Implied M.Cap (INR Cr.) | 161.87 |
| Exchange | BSE SME |
| Min. Lot Size (Retail | HNI) | 1,200 | 1,800 |
| Issue Opens on | 23-Dec’25 |
| Issue Closes on | 26-Dec’25 |
| Listing Date | 31-Dec’25 |
| Fresh Issue of Shares (#) | 17,82,600 |
| Offer for Sale (#) | - |
| Funds Mobilized (INR Cr.) — Fresh Issue of Shares | 42.6 |
Use of IPO Proceeds
- Capital expenditure: INR 16.47 Cr. is allocated to machinery and installation to enhance in-house manufacturing capabilities.
- Working capital: INR 15.50 Cr. is allocated for working capital.
- General corporate purposes: The amount is printed as [●] in the issue summary.
Strengths
- Order book and larger contracts: The order book stood at INR 44.22 cr. as on 14-Nov’25. It included domestic orders for handling systems and an export order for Grinding Automation; the single largest order was worth Rs. 13.45 crores.
- Export contribution: Export revenue rose from ₹0.06 crores in FY24 to ₹6.7 crores in FY25, or 12.6% of total revenue. Export orders made up 26.3% of the current order book.
- Planned in-house processing: The company plans to acquire CNC Laser Cutting and CNC Milling machines. It currently outsources 60-70% of part processing; bringing this work in-house is expected to reduce processing costs by 15–20% and cut lead times from 1–2 months to a few days.
- Management projections: Management projected revenue of INR 80 Cr. and PAT of INR 10 Cr. for FY26E, and revenue of 120-130 and PAT of 22 for FY27E.
- Integrated facility and product range: The Pune facility covers fabrication through testing. Products span steel machinery, pipe industry solutions, NDT equipment, packaging and automation.
Admach Systems Key Financials
| Particulars | FY23 | FY24 | FY25 | Q1FY26 |
|---|---|---|---|---|
| Revenue (excl. other inc.) | 13 | 20 | 53 | 23 |
| Growth Rate Y-o-Y % | 50.2% | 171.1% | ||
| EBITDA (excl. other inc.) | 1 | 6.3 | 10.3 | 4.5 |
| PAT | 0.1 | 3.3 | 6.1 | 3 |
| Gross Margin % | 31.6% | 54.5% | 31.4% | 27.1% |
| EBITDA % (excl. other inc.) | 7.6% | 32.0% | 19.3% | 19.5% |
| PAT % | 0.7% | 16.9% | 11.4% | 13.1% |
| Debt (Short+Long) | 8.4 | 15.6 | 10.7 | 10.2 |
| Debt/Equity | 3.55x | 2.72x | 0.48x | 0.41x |
| NWC | 10 | 21 | 29 | 35 |
| NWC (days) | 270 | 384 | 201 | 136 |
| ROE % | 4.44% | 82.57% | 43.94% | 51.28% |
| ROCE % | 13.18% | 68.59% | 44.00% | 68.49% |
| CFO / EBITDA % | (222.6%) | (126.9%) | 4.4% | 6.7% |
NWC includes Inventory, Receivables & Payables; & NWC days is computed as % of rev.
IPO Valuation and Our View
The issue is valued at a P/E ratio of 26.5x based on FY25 PAT, or 13.5x on annualized Q1FY26 PAT. Minerva Capital Research Solutions weighs the order book, planned vertical integration and export focus against the risk of margin fluctuations, and assigns a May Subscribe rating.
- INR 227 to 239
- IPO price band per share
- ~INR 161.87 Cr.
- Market cap
- May Subscribe
- Recommendation
Key Risks
- Working capital and cash conversion: The report flags high inventory needs arising from long lead times, custom fabrication and complex assembly, as well as poor CFO to EBITDA conversion.
- Customer concentration: The company derives 95% of revenue from its top 10 customers, while the top 3 orders represent 61.5% of the current order book.
- Inventory tracking: Project-wise raw-material inventory is not currently maintained because there is no ERP system; implementation remains a monitorable.
- Segment concentration: Steel Machines accounted for 88.5% of FY25 revenue versus 55.13% in FY24. Diversification across other business segments remains a monitorable.
Business and Order Book
Steel Machines contributed 88.48% of FY25 sales. The order book as on 14-Nov’25 comprised domestic orders of INR 32.59 Cr. and export orders of INR 11.63, for a total of 44.22. The report states that the order book was expected to be executed by March 31, 2026.
Capacity utilisation reached 100% in FY25, with production of 100 units against installed capacity of 100. IPO-funded machinery is intended to bring more component processing in-house. The report also notes that the jump in exports included revenue recognised via China from one order worth Rs. 6.58 crores.
Management
The report identifies Mr. Ajay Chamanlal Longani as Promoter, Chairman and Managing Director, with over three decades (30+ years) of experience in the machine tool and precision engineering industry. Promoter and Executive Director Mr. Mahesh Chamanlal Longani has approximately 27 years of experience in the machine tool and instrumentation industry.
Our View
The IPO case rests on Admach Systems’ order book, export activity and planned expansion of in-house processing. These opportunities come with working-capital, customer-concentration and margin risks; the report’s recommendation is May Subscribe.
Standard disclosures
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For any queries or grievances: Mr. Nishant Gupta | Email: nishant.gupta@mcapital.in or guptanishant.iimi@gmail.com | Contact Number: 8171433387 | Website: www.mcapital.in | Twitter: @Mcapital_In
- Equity Analyst for this report: Mr. Shubham Upadhyay (shubham.upadhyay@mcapital.in)
Rating rationale
Minerva Capital Research Solutions endeavors to provide objective opinions and recommendations. Ratings are assigned to stocks according to their fair value vs current market price and then categorizes them as Buy, Hold, Reduce, Sell. The performance horizon is one year unless specified and fair value is defined as analyst’s valuation for a stock.
- Buy:> 15%
- Hold: -5% to 15%
- Reduce: -15% to -5%
- Sell: <-15%