Subscribe for Gala Precision Engineering Ltd; Anand Rathi

Anand Rathi, has come out with its report on Gala Precision Engineering Ltd. The research firm has recommended to “ Subscribe” the ipo in its research report as on August 31 2024.

Broker Research

September 02, 2024 / 11:53 IST

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Anand Rathi, IPO report on Gala Precision Engineering Ltd

Gala Springs Private Limited was incorporated on April 14, 1988. Subsequently it was converted to a Limited Liability Partnership named, Gala Springs LLP under the Limited Liability Partnership Act, 2008. They are a precision component manufacturer of technical springs like disc & strip springs (“DSS”) including wedge lock washers; coil & spiral springs (“CSS”) and special fastening solution (“SFS”) supplying to original equipment manufacturers (“OEMs”), Tier 1 and channel partners; used in sectors like renewable energy including wind turbine and hydro power plants, various industrial sectors such as electrical, off highway equipment’s, infrastructure and general engineering, mobility segments such as automotive and railways. Their technical springs and high tensile fasteners have been supplied to customers in countries such as Germany, Denmark, China, Italy, Brazil, USA, Sweden, Switzerland etc. Accordingly, they are a key link in the global supply chain for OEMs.

Valuation and Outlook

The company's P/E ratio is 30.0 times based on its FY24 earnings, with a market capitalization of ₹6,702 million after the issuance of equity shares and a market cap-to-sales ratio of 3.3 times its FY24 earnings. We believe that the issue is fairly priced, therefore we recommend “Subscribe – Long Term” rating to the IPO.

For all IPO report, click here