Revenue CAGR (FY23-25): 25%
EBITDA CAGR: 52%
PAT CAGR: 134%
ROE (FY25): 22.01%
ROCE (FY25): 33.79%
Net Debt to Equity improved from 1.16x (FY23) to 0.21x (FY25)
EBITDA Margin (9MFY26): 20.9%
PAT Margin (9MFY26): 9.28%
The company has delivered strong growth over the last three years.
Valuation Analysis
Post issue market cap: ₹5,971 Cr
P/BV: 14.38x (NAV ₹94.02 as of Dec 31, 2025)
Annualised FY26 P/E: ~63x
Industry average P/E: ~58x
The IPO appears aggressively priced compared to industry valuation levels.
Key Strengths
First-to-market advantage
Integrated design and manufacturing
Cross-market synergies
Technology differentiation
Strong quality and traceability systems
Key Risks
High revenue concentration risk
Dependence on mobility segment
Regulatory and environmental risks
Technological transition risks
Counterparty credit risk
Dependence on top 10 suppliers
Supply chain and geopolitical risks
Dependence on automotive cycle
Margin sustainability risk
Indebtedness and covenant risks
Who Should Consider This IPO?
Investors with high risk appetite who understand automotive technology businesses and are comfortable with higher valuation multiples may evaluate the opportunity cautiously.
Who Should Avoid?
Conservative investors seeking margin of safety or lower valuation entry points may avoid the issue at current pricing.
Our Final View – Cautious
Sedemac Mechatronics is a high-growth, specialized ECU manufacturer with strong market positioning and technological capability. However, aggressive valuation and multiple business risks make the IPO suitable only for selective investors. We maintain a Cautious view on the issue.
Frequently Asked Questions (FAQs)
Is Sedemac Mechatronics IPO good?
The IPO has strong business fundamentals but appears aggressively priced. Investors should approach cautiously.
What is the lot size?
The minimum lot size is 11 shares.
Is this a fresh issue?
No, this is entirely an Offer For Sale and the company will not receive proceeds.
Brief Financials
| PARTICULARS |
₹ in Million |
As at
Dec 30, 2025 |
FY ‘25 |
FY ‘24 |
FY ‘23 |
| Total Income |
7,753.06 |
6,625.36 |
5,358.96 |
4,298.66 |
| Total Expenditure |
6,670.36 |
5,948.37 |
5,270.83 |
4,218.59 |
| EBITDA |
1,610.71 |
1,250.68 |
831.24 |
542.40 |
| Profit/(Loss) before Tax |
1,082.70 |
676.99 |
88.13 |
80.07 |
| Profit/(Loss) after Tax |
714.98 |
470.45 |
58.78 |
85.73 |
| E.P.S. (Diluted) |
16.35* |
10.82 |
1.39 |
2.04 |
| P/E (x) (Diluted) |
- |
127 |
- |
- |
| RONW (%) |
17.39* |
15.48 |
4.72 |
7.44 |
*Not Annualised
PRICE CHART (@ ₹ 1,352) (Retail Category)
| LOT SIZE |
| Amount |
| 11 |
14,982 |
| 22 |
29,744 |
| 33 |
44,616 |
| 44 |
59,488 |
| 55 |
74,360 |
| 66 |
89,232 |
| 77 |
104,104 |
| 88 |
118,976 |
| 99 |
133,848 |
| 110 |
148,720 |
| 121 |
163,592 |
| 132 |
178,464 |
| 143 |
193,336 |
HNI Payment Chart
| Category |
| No. of Shares |
Minimum Bid Lot Amount (Rs.) |
| Small HNI |
154 |
208,208 |
| Big HNI |
748 |
1,011,296 |
Indicative Time Table
| Tentative Events |
| Indicative Dates |
| Finalisation of Basis of Allotment with the Designated Stock Exchange |
9/3/2026 |
| Initiation of refunds/unblocking ASBA Fund |
10/3/2026 |
| Credit of Equity Shares to demat accounts of Allottees |
10/3/2026 |
| Commencement of trading of the Equity Shares on the Stock Exchanges |
11/3/2026 |
Disclaimer:
The content provided in this blog is for informational and educational purposes only and should not be construed as investment, legal, or tax advice. While Sushil Finance makes reasonable efforts to ensure accuracy and reliability of the information, we do not guarantee its completeness or timeliness. Readers are advised to consult with their financial advisor before making any investment decisions. Sushil Finance shall not be held responsible for any direct or indirect loss arising from use of this content. Investments in securities are subject to market risks. Read all scheme-related documents carefully before investing.
