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

ET Intelligence Group: Lohia Corp, a equipment producer for technical textiles, plans to lift ₹1,102 crore via a proposal on the market. The promoter group’s stake will fall to 75.2% after the IPO from 95.6%. Over 40% of the income comes from abroad. Imported uncooked supplies accounted for about 16% of uncooked materials prices in FY26 and any improve in import duties, tariffs, logistics disruptions or geopolitical points might have an effect on prices and manufacturing timelines. Nevertheless, given sturdy monetary efficiency, traders with the next danger urge for food could think about the IPO for the long run.

Enterprise
Included in 2023, Kanpur-based Lohia Corp presents a variety of machines, together with tape extrusion traces, round looms, coating and lamination traces, printing and conversion machines, multifilament yarn machines, tornado winders, and associated spare components. These machines are used within the manufacturing of polypropylene and high-density polyethylene woven material and sacks amongst different merchandise. It operates six manufacturing facilitie -four in India and one every within the USA and Italy. The corporate’s enterprise is cyclical because it is dependent upon agriculture, textile and building sectors, that are influenced by components equivalent to crop costs, climate situations, fertilizer prices, actual property exercise and general financial situations. In accordance with the Frost & Sullivan report, the corporate is a market chief within the home woven raffia machines market, with a market share of 40.7% by worth, in FY25.

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Financials

On a year-on-year foundation, income from operations grew 24.7% to ₹1,717 crore and web revenue surged 64.2% to ₹193.5 crore. Round 88% of the income comes from woven raffia machines. Working margin earlier than depreciation and amortisation (EBITDA margin) expanded to 19.5% in FY26 from 16.5% a yr in the past. Money move from operations grew 130.1% to ₹325.2 crore in FY26 over FY25. The corporate’s order ebook grew to ₹1,358.5 crore as of 31 March 2026 from ₹828.5 crore as on 31 March 2025. Internet debt to fairness contracted to 0.2 occasions in FY26 from 0.5 occasions in FY25.

Valuation
Contemplating the post-IPO fairness and web revenue for FY26, the corporate calls for a price-earnings (P/E) a number of of 23. It doesn’t have a direct comparable publicly listed peer. A few of the different engineering/capital items equipment producers serving industrial prospects are Jyoti CNC Automation and LMW, whose price-earnings (P/E) a number of works out to be between 53-131.