Swastika Castal IPO

Incorporated in 1996, Swastika Castal Limited is a specialized manufacturer in the aluminum casting industry. The company focuses on producing high-quality castings using sand, gravity, and centrifugal casting methods. With expertise in sand casting for complex components up to 250 kg and gravity casting for precision parts up to 80 kg, Swastika Castal delivers products with excellent surface finish and dimensional accuracy. Its in-house heat treatment facility ensures tight control over mechanical properties, enhancing quality, efficiency, and cost-effectiveness.

Swastika Castal serves a diverse range of sectors with its reliable aluminum castings. Key product segments include components for electrical equipment and transmission systems, durable castings for railways and diesel engines, and parts for various industrial applications such as air compressors and insulators. The company’s focus on precision and robust engineering makes it a trusted partner in critical and heavy-duty applications.

Swastika Castal IPO Strengths

• The company possesses advanced machining, inspection, and testing facilities, backed by a skilled team of metallurgists and professionals, ensuring high-quality product output and compliance with industry standards.
• Swastika Castal caters to multinational corporations and large domestic clients across diverse industries such as electrical and railways, reducing dependency on a single sector or client.
• The company exports a portion of its products to Europe and the USA, demonstrating international acceptance and expanding its addressable market.
• Swastika Castal supplies “ready to use” components as original equipment to reputed companies, reflecting its credibility and quality assurance in the supply chain.
• Annualized financials show rising revenues, reaching ₹29.66 crore in FY25, indicating business scalability and growing demand for its products.

Swastika Castal IPO Risks

• The company operates in a manufacturing segment that is working capital intensive. Any delays in receivables or higher inventory needs can strain liquidity and impact day-to-day operations.
• Swastika Castal reported total debt of ₹9.11 crore against a net worth of ₹10.66 crore in FY25. While the debt/equity position is manageable, any deterioration in cash flows or profitability could amplify financial risk.
• The aluminium casting industry is impacted by fluctuations in global aluminium prices and raw material costs. The company’s ability to pass on rising costs to end customers may be limited, impacting margins.
• Though catering to multiple sectors, Swastika Castal may still face sales concentration with a few major customers or sectors. Loss of a significant client or a slowdown in a key sector could impact revenues significantly.
• The Indian casting industry is highly competitive and fragmented, with pressure from both organized and unorganized players. Sustaining growth, profitability, and client retention in such an environment is a persistent challenge.
• As a manufacturer with some export exposure, Swastika Castal is vulnerable to global economic downturns, foreign exchange fluctuations, and geopolitical events that can disrupt supply chains or suppress demand.