Can Lohia Corp IPO deliver long-term growth for high risk investors?

Business

Incorporated in 2023, Kanpur-based Lohia Corp offers a wide range of machines, including tape extrusion lines, circular looms, coating and lamination lines, printing and conversion machines, multifilament yarn machines, twister winders, and related spare parts. These machines are used in the production of polypropylene and high-density polyethylene woven fabric and sacks among other products. It operates six manufacturing facilitie -four in India and one each in the USA and Italy. The company's business is cyclical as it depends on agriculture, textile and construction sectors, which are influenced by factors such as crop prices, weather conditions, fertilizer costs, real estate activity and overall economic conditions. According to the Frost & Sullivan report, the company is a market leader in the domestic woven raffia machines market, with a market share of 40.7% by value, in FY25.

Read more: Can Indo-MIM IPO deliver long-term growth for high risk investors?

Financials

Valuation

Considering the post-IPO equity and net profit for FY26, the company demands a price-earnings (P/E) multiple of 23. It does not have a direct comparable publicly listed peer. Some of the other engineering/capital goods machinery manufacturers serving industrial customers are Jyoti CNC Automation and LMW, whose price-earnings (P/E) multiple works out to be between 53-131.

(What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today.

Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today.

Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price