1. Who is Narmadesh Brass Industries?
Founded as a partnership in 2019 and converted into a public limited company in 2023, Narmadesh Brass Industries is a key player in Jamnagar, Gujarat—the brass capital of India. The company operates an integrated facility where it handles everything from casting and forging to the final machining of brass products.
Their Product Portfolio includes:
Industrial: Brass Billets, Continuous Casting Rods, and Turning Components.
Infrastructure: Plumbing and sanitary fittings, Ball valves, and Non-return valves (NRVs).
Agriculture: Agricultural sprayer parts and garden fittings.
2. Key IPO Details & Timeline
The IPO is a Fixed Price Issue consisting of both a Fresh Issue (₹36.09 Cr) and an Offer for Sale (₹8.78 Cr).
| Event | Date / Details |
|---|---|
| IPO Open Date | Monday, January 12, 2026 |
| IPO Close Date | Thursday, January 15, 2026 |
| Price Band | ₹515 per share (Fixed) |
| Lot Size | 240 Shares |
| Minimum Investment (Retail) | ₹2,47,200 (for 2 lots/480 shares) |
| Allotment Date | Friday, January 16, 2026 |
| Listing Date | Tuesday, January 20, 2026 |
| Listing Platform | BSE SME |
3. Financial Snapshot
The company has shown a steady upward trend in revenue, though profitability saw a slight dip in the most recent full fiscal year due to rising input costs.
Revenue (FY25): ₹87.72 Crore (up from ₹59.96 Cr in FY23)
Profit After Tax (FY25): ₹5.72 Crore (down from ₹7.10 Cr in FY24)
EBITDA Margin: 10.64%
Return on Net Worth (RoNW): ~50%
4. Objectives of the Issue
Narmadesh intends to use the fresh capital to strengthen its balance sheet and expand capacity:
Debt Repayment (₹14.50 Cr): To reduce interest burdens and improve the Debt-to-Equity ratio.
Working Capital (₹10.20 Cr): Supporting day-to-day operations and raw material procurement.
Machinery Purchase (₹3.29 Cr): To enhance production capabilities at their Jamnagar unit.
5. Strengths & Risks
Strengths:
Integrated Setup: Controlling the entire value chain—from raw material to finished component—allows for better quality control.
Strategic Hub: Location in Jamnagar provides easy access to skilled labor and logistics specific to the brass industry.
Diversified Reach: Serves both domestic wholesalers and international export markets.
Risks:
High Valuation: At ₹515 per share, the P/E ratio is roughly 27x–28x, which is significantly higher than its immediate peer Poojawestern Metaliks.
Customer Concentration: A major portion of revenue depends on the top 10 clients.
Commodity Sensitivity: Profits are highly sensitive to fluctuations in the prices of Copper and Zinc.
6. Conclusion
Narmadesh Brass Industries is a well-established player in a niche industrial segment. While its growth story is backed by a strong "Make in India" tailwind in infrastructure and plumbing, the high entry price (Fixed at ₹515) and high debt-to-equity ratio (before the IPO) are points of caution. Conservative investors may want to watch for subscription numbers and GMP trends before committing.