Patil Automation IPO – Comprehensive Analysis (June 2025)
🏢 Company Overview
Founded: 2015
Headquarters: Pune, Maharashtra
Managing Director: Mr. Manoj Pandurang Patil
Business Model:
Patil Automation Ltd provides industrial automation solutions, particularly for the automotive sector. It specializes in the design, manufacturing, testing, and installation of customized automation systems.
Key Offerings:
- Welding lines (Spot, MIG, TIG)
- Assembly lines
- Material handling systems
- Robotic cells and special-purpose machines
- Inspection systems and auxiliary components
Client Base:
- OEMs, Tier I suppliers, and EV manufacturers
- Operational reach across 10 Indian states
- Repeat orders from top clients; accolades include Best Supplier, Exceptional Performance, and Best Tech-Savvy Partner awards
Certifications:
- ISO 9001:2015 (Quality)
- ISO 45001:2018 (Safety)
- ISO 14001:2015 (Environmental)
Infrastructure:
- Two manufacturing units in MIDC Chakan, Pune (built-up area: 1,09,000 sq. ft.)
- Equipped with CNC machines, laser/plasma cutters, CMMs, etc.
- Advanced software for design: E-PLAN, CATIA V5, AutoCAD, Delmia, Solid Edge
📅 IPO Timeline
| Detail | Information |
|---|---|
| IPO Opening Date | 16 June 2025 |
| IPO Closing Date | 18 June 2025 |
| Allotment Date | June 2025 (Tentative) |
| Listing Date | June 2025 (Tentative) |
| Price Band | ₹114 – ₹120 |
| Lot Size | 1,200 shares |
| Minimum Investment | ₹1,36,800 |
| Issue Size | ₹69.61 Crores |
| Issue Type | 100% Fresh Issue |
📈 Financial Performance (₹ in Crores)
| Financial Year | Revenue | Profit |
|---|---|---|
| FY23 | 77.81 | 4.20 |
| FY24 | 115.00 | 7.84 |
| FY25 | 119.00 | 11.70 |
🔍 Industry & Peer Comparison
Sector: Industrial Automation for Automotive
Niche: Customised Welding & Assembly Automation
Key Competitors:
- Tata AutoComp Systems
- Hi-Tech Robotic Systemz
- Endurance Technologies (indirectly)
Industry Observations:
- Patil Automation is more niche-focused than general automation peers.
- Client dependence on auto sector creates volatility risks.
✅ Strengths
- 🛠 Advanced Automation Expertise: Uses top-tier CAD and process simulation tools like CATIA, Solid Edge, and E-PLAN.
- 🏭 Robust Infrastructure: 1,09,000 sq. ft. of built-up area across two modern plants in Pune.
- 🔁 Strong Client Relations: Repeat orders from key auto OEMs and multiple awards.
- 📈 Revenue Growth: Revenue grew from ₹77.81 Cr in FY23 to ₹119 Cr in FY25.
- 🌐 Diverse Service Portfolio: End-to-end solutions from design to maintenance & manpower support.
⚠️ Risks & Concerns
- 🚗 Automotive Dependence: Over 88% of revenue comes from the auto sector; cyclical by nature.
- 👥 Customer Concentration: Top 10 clients contribute over 70%+ revenue consistently.
- 🔧 Product Dependency: Welding lines alone account for ~65–77% of revenues.
- 🧾 Receivables Risk: High trade receivables of ₹49.93 Cr as of FY25.
- 📍 Single Location: All manufacturing based in Pune; exposes operations to regional disruptions.
- ⚖️ Legal Proceedings: Ongoing cases involving promoters and the company.
- 📉 Capacity Constraints: Production utilization nearing 87%; future scale-up may need significant investment.
- 🧾 Debt Burden: Total financial debt at ₹31.86 Cr (FY25), affecting financial flexibility.
📄 IPO Document
🔗 Refer to the official DRHP/RHP for complete details
📌 Disclaimer
This analysis is based on publicly available information including the Draft Red Herring Prospectus (DRHP), RHP, and filings made with stock exchanges. It is provided for informational purposes only and does not constitute investment advice. Readers are encouraged to perform their own due diligence before making any investment decisions. Read the Disclaimer page for more details.