A Sanand-based Tier-II auto-plastics maker opens its Rs 46.44 crore NSE SME issue on September 17
Kheria Autocomp Ltd (KAL) is an auto-ancillary unit specialising in plastic injection moulding and sub-assembly operations, supplying primarily to the automotive sector — a play on India’s passenger-vehicle production and the shift to EVs.
While it earlier also served the white-goods segment, its present focus is squarely on automotive plastic moulded parts. The positioning is as a Tier-II supplier.
KAL produces moulded plastic components to the specifications of Tier-I vendors, who in turn supply original equipment manufacturers (OEMs) in the passenger-vehicle categories. Its product range covers interior cabin trims, exterior plastic parts, under-hood components, and heating, ventilation and air-conditioning (HVAC) ducts — supplied for both internal combustion engine (ICE) and electric vehicles, giving it exposure to both current and future mobility platforms.
Beyond components, KAL undertakes basic sub-assembly operations (bolt assembly, insert fitting) to support integration into larger Tier-I assemblies.
The manufacturing base is modern and strategically located. KAL’s facility sits within the Tata Vendor Park at Sanand, Gujarat, across about 3 acres, equipped with 30 injection-moulding machines (120 to 1,700 tons, mainly from Milacron), supported by automation, robotic systems and vision-measuring equipment for dimensional verification.
Installed capacity was 5,400 MTPA as of FY26. Being inside the Tata Vendor Park is a genuine logistical advantage — most raw-material suppliers and key Tier-I customers are close by, reducing lead times and transport costs.
Quality and sustainability credentials underpin the operation. KAL is certified under IATF 16949, ISO 45001:2018 and ISO 14001:2015, implements lean-manufacturing practices, and has installed a 636 kW solar system to reduce reliance on conventional power.
It operates in a highly competitive and fragmented segment that keeps pressure on cost competitiveness. It had 119 employees as of June 30, 2026, and the promoters are the Kheria family (Tara Chand Kheria, Vinay Kheria, Sushma Kheria and Santosh Devi Kheria).
Issue Details
| Particulars | Details |
|---|---|
| Issue Opens | September 17, 2026 |
| Issue Closes | September 21, 2026 |
| Listing | NSE SME Emerge |
| Listing Date | September 24, 2026 |
| Issue Type | Book Built |
| Price Band | Rs 96 – Rs 101 per share |
| Face Value | Rs 10 |
| Issue Size | Rs 46.44 crore (45,98,400 shares, entirely fresh) |
| Min. Application | 2,400 shares (2 lots; multiples of 1,200 thereafter) |
| Min. Retail Investment | Rs 2,42,400 |
| Post-IPO Market Cap | Rs 160.07 crore |
| IPO as % of Post-IPO Capital | 29.02% |
| Lead Manager | SMC Capitals Ltd. |
| Market Maker | SMC Global Securities Ltd. |
| Registrar | KFin Technologies Ltd. |
The issue is entirely a fresh issue. From the net proceeds, KAL will utilise Rs 39.96 crore for capex on setting up a new manufacturing facility for plastic moulded auto components (at GIDC Sanand Industrial Park), with the rest for general corporate purposes — a clear growth-and-capacity use of proceeds.
Post-IPO, paid-up equity rises from Rs 11.25 crore to Rs 15.85 crore.
Price Band
At the upper band of Rs 101, on FY26 earnings the issue is valued at a P/E of about 14.01x, with a P/BV of 2.88 on the March 31, 2026 NAV of Rs 35.13, easing to 1.86x on the post-IPO NAV of Rs 54.24. On the FY25 base the P/E is about 19.42x — so on recent average earnings, analysts read the issue as fully priced, albeit reasonable for a growing auto-component maker.
GMP Watch
Grey-market interest has been flat-to-minimal. In tracked data, the Kheria Autocomp IPO GMP ranged from ₹0 to about ₹10 in the run-up to opening — implying little to modest listing gain over the Rs 101 upper band.
A flat grey market for a fully-priced SME issue is a lukewarm sign and aligns with the cautious fundamental view.
Financial Performance
| Particulars (Rs cr) | FY24 | FY25 | FY26 |
|---|---|---|---|
| Total Income | 62.40 | 92.31 | 120.30 |
| Net Profit (PAT) | 3.31 | 8.24 | 11.42 |
| PAT Margin (%) | 5.31 | 8.95 | 9.52 |
| RoCE (%) | 20.32 | 25.21 | 26.89 |
The financials show strong, consistent growth. Total income nearly doubled from Rs 62.40 crore in FY24 to Rs 120.30 crore in FY26 (up 30.3% in FY26), and PAT more than tripled from Rs 3.31 crore to Rs 11.42 crore.
PAT margin improved steadily from 5.31% to 9.52%, and RoCE from 20.32% to 26.89% — pointing to operating leverage, automation benefits and a better product mix, rather than a one-off spike. The company reported an average EPS of about Rs 8.01 and an average RoNW of 18.02%.
Peer Comparison
The offer document lists Machino Plastics and PPAP Automotive as peers, trading at P/Es of roughly 16,882x (an outlier, likely reflecting near-zero earnings) and 80.0x (as of September 15, 2026).
These are not meaningful like-for-like comparables — so the peer table offers little valuation anchor, and KAL’s ~14x FY26 P/E stands largely on its own metrics, with its superior margins versus these peers a point to scrutinise.
Risks to Consider
Full valuation is a headline consideration. On average earnings the issue is fully priced (FY25 P/E of ~19x), with no meaningful listed peer to anchor it — so the pricing already reflects the strong growth, leaving limited cushion.
Margin-outperformance surprise. KAL’s margins running ahead of its listed peers, for a Tier-II auto-plastics supplier in a competitive, fragmented segment, is unusual and warrants scrutiny over sustainability.
Customer and Tier-I dependence. As a Tier-II supplier, KAL depends on Tier-I vendors (and ultimately OEMs) for orders, so growth hinges on winning new Tier-I business and maintaining product quality; customer concentration and the loss of a key relationship are real risks.
Auto-cycle and raw-material exposure. Demand is tied to the passenger-vehicle production cycle, and margins are exposed to polymer/resin input-price volatility — both cyclical variables outside the company’s control.
Receivables and single-location risks. Rising trade receivables raise a cash-conversion concern, and all manufacturing runs from Sanand (geographic concentration).
The Rs 39.96 crore new-facility capex must translate into utilised capacity and Tier-I orders to justify the raise; any delay could weigh on returns. SME-platform liquidity and the large Rs 2.42 lakh minimum retail ticket add to the risk profile.
