Kheria Autocomp IPO

Published: 10 September 2026 | 6.00 AM
Last Updated: 10 September 2026 | 6.00 AM

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Chanakya View

Kheria Autocomp Limited is a growing auto-component manufacturer specialising in injection-moulded plastic parts and sub-assemblies. Its location inside Tata Vendor Park at Sanand, diversified product range for internal-combustion and electric vehicles, and established Tier-II supplier position provide meaningful business advantages. Revenue increased 30% to Rs. 120.30 crore in FY2026, while profit after tax rose 39% to Rs. 11.42 crore.

The company reported a healthy ROCE of 26.89%, ROE of 33.72% and improved EBITDA margin of 19.08%. At the upper price of Rs. 101, the post-issue P/E is 14.01 times. This valuation appears reasonable.

However, total borrowings increased to Rs. 35.03 crore from Rs. 30.90 crore, and the debt-equity ratio stands at 0.89. The company operates as a Tier-II supplier, which creates dependence on Tier-I customers. The IPO is an SME issue, carrying lower liquidity and higher price-volatility risks.

The fresh issue will fund a new manufacturing facility for plastic-moulded automotive components at GIDC Sanand Industrial Park. This capacity expansion can support future growth, but successful execution and utilisation will be important.

The IPO appears suitable for selective investors. The final decision should depend on GMP, subscription response and overall SME market sentiment during the issue period.

Chanakya Recommendation: 🟡 Selective Apply

About the Company

Incorporated in 2009, Kheria Autocomp Limited manufactures injection-moulded plastic components and undertakes sub-assembly operations for the automotive sector. It operates as a Tier-II supplier, producing components for Tier-I vendors serving passenger-vehicle original equipment manufacturers.

Its portfolio includes interior cabin trims, exterior plastic parts, under-hood components and heating, ventilation and air-conditioning ducts. These products serve both internal-combustion vehicles and electric vehicles, giving the company exposure to conventional mobility platforms.

The manufacturing facility is located across three acres within Tata Vendor Park at Sanand, Gujarat. It houses 30 injection-moulding machines with capacities ranging from 120 tonnes to 1,700 tonnes. The company has installed a 636-kW solar power system and four groundwater-recharge wells. As of March 31, 2026, it employed approximately 113 people.

Why This IPO Stands Out

✅ Revenue increased 30% and profit after tax rose 39% in FY2026.

✅ Healthy ROCE of 26.89% and ROE of 33.72%.

✅ Products cater to both conventional passenger vehicles and electric vehicles.

✅ Manufacturing unit is strategically located within Tata Vendor Park, Sanand.

✅ Entire IPO is a fresh issue, supporting capacity expansion and future growth.

✅ Post-issue P/E of 14.01 times appears reasonable against strong growth.