Neetu Yoshi IPO

Neetu Yoshi claims to operate a fully equipped manufacturing facility in Bhagwanpur, Uttarakhand, with an installed capacity of 8,087 metric tonnes per annum. The facility is Research Designs and Standards Organisation (RDSO) approved, which allows the company to supply over 25 products to Indian Railways.

The company claims its manufacturing facility benefits from a strategic location near the Jagdari railway workshop, providing access to high-quality alloy at reduced transportation costs. The company further states that the facility also enjoys lower electricity tariffs, contributing to operational cost savings and enhanced profit margins.

The company claims to have in-house testing facilities that perform rigorous physical, chemical, and metallurgical testing to ensure that both raw materials and finished products meet the required standards and customer specifications.

The company holds ISO 9001:2015 certification for its quality management systems, ISO 14001:2015 certification for its environmental management systems, and ISO 45001:2018 certification for its occupational health and safety management systems.

The company has reported a consistent increase in revenue from operations and profit after tax (PAT). Revenue from operations increased from Rs 4.59 crore in FY22 to Rs 16.23 crore in FY23 and Rs 47.33 crore in FY24. PAT increased from Rs 0.07 crore in FY22 to Rs 0.42 crore in FY23 and Rs 12.58 crore in FY24.

Neetu Yoshi operates its manufacturing facility in Bhagwanpur, Uttarakhand, and any disruption, breakdown, or shutdown at this location may significantly impact the company's business, financial condition, and cash flow.

The cost of materials consumed accounted for 51.28 percent and 79.84 percent of the company’s revenue in FY24 and FY23, respectively. Any shortage in availability or fluctuations in raw material prices could have a material adverse effect on the company’s business, financial condition, results of operations, and cash flows.

The top five customers accounted for Rs 31.77 crore (62.2 percent) of the company’s revenue in the nine months ended December 31, 2024, Rs 39.82 crore (84.31 percent) in FY24, Rs 13.82 crore (85.17 percent) in FY23, and Rs 4.38 crore (95.40 percent) in FY22. Furthermore, the top customer alone accounted for Rs 13.48 crore (26.38 percent) of the company’s revenue in the nine months ended December 31, 2024, Rs 25.68 crore (54.39 percent) in FY24, Rs 7.53 crore (46.41 percent) in FY23, and Rs 3.36 crore (73.24 percent) in FY22. Any failure to retain these key customers, expand the customer base, or a loss of business from even one of these clients can adversely affect the company’s business and financial standing.

The company, its promoters, and directors are involved in certain ongoing legal proceedings. Any adverse judgments in any of these cases could be detrimental to the company’s business prospects.

Neetu Yoshi relies on third-party transporters, including approximately 20 transporters, to deliver its finished products from the manufacturing facility to customers. Any disruption in transportation services could negatively impact the company’s ability to deliver products on time.

As of FY25, the company had outstanding financial indebtedness amounting to Rs 13.66 crore. Any failure to service or repay these loans can harm the company’s operations and financial position.

The company has been in existence for a short time. Hence, investors will find it difficult to obtain past data to analyse past long-term trends and future prospects.