Shining Tools IPO

The company claims to maintain high operational efficiency through the use of advanced, machine-based manufacturing tools. This approach minimises human error, enhances precision, and improves productivity, enabling the company to meet production targets and customer requirements efficiently.

Shining Tools claims to have the capability to design and manufacture customised cutting tools as per client specifications. This allows the company to cater to diverse industrial requirements by producing tools with specific dimensions, materials, or functionalities.

The company offers a wide portfolio of solid carbide cutting tools, including end mills, drills, and reamers, designed for use in various industrial applications. This product diversity enables it to serve multiple sectors and provide comprehensive tooling solutions.

The company’s manufacturing facility is located at Pipaliya on the Rajkot–Gondal highway in Gujarat. It is surrounded by several small and medium enterprises (SMEs) and micro, small, and medium enterprises (MSMEs) catering to sectors such as engineering, automobiles, agriculture, auto ancillaries, and die-moulding. Its proximity to industrial belts like Shapar and Vavadi provides logistical advantages for supply and distribution.

Shining Tools claims to have quality inspection systems using two Zoller machines—one Zoller Genius-3s machine that performs five-axis checks and one Zoller Smart Check 450 machine that performs three-axis checks. These machines help ensure that each tool meets the required technical specifications and quality standards.

The company claims to maintain long-standing relationships with its clients, supported by its expertise in tool manufacturing and reconditioning. It also provides clients with technical guidance on tool selection to help improve production efficiency.

Shining Tools claims to maintain reliable relationships with its raw material suppliers and vendors. This network enables it to procure materials on time and at competitive rates, helping to prevent production delays.

The company is ISO 9001:2015 certified for its quality management systems.

The company has witnessed a consistent increase in revenue from operations. It increased from Rs 10.32 crore in FY23 to Rs 10.53 crore in FY24 and Rs 14.73 crore in FY25.

The top customer alone accounted for Rs 0.97 crore (17.95 percent) of the company’s revenue for the period ended July 31, 2025; Rs 2.92 crore (19.85 percent) in FY25; Rs 1.16 crore (11.02 percent) in FY24; and Rs 0.77 crore (7.48 percent) in FY23. The company does not have any long-term agreements with these clients. Any inability to retain these key customers, secure favourable terms, or diversify its customer base could adversely affect the company’s business operations, financial condition, and cash flows.

The top supplier alone accounted for Rs 0.58 crore (32.32 percent) of the company’s total purchase for the period ended July 31, 2025; Rs 1.47 crore (46.11 percent) in FY25; Rs 0.92 crore (56.02 percent) in FY24; and Rs 1.16 crore (59.29 percent) in FY23. The company does not have long-term supply contracts and acquires materials through purchase orders, making it vulnerable to price volatility, supply disruptions, and fluctuations in global demand and trade conditions. Any delay or failure by this vendor to deliver materials on time, or any sharp increase in raw material costs, could hurt the company’s production schedule, profits, and financial performance.

The company reported negative cash flow from operating activities amounting to Rs 0.40 crore for the period ended July 31, 2025. This was primarily due to an increase in inventories, trade receivables, and short-term loans and advances. Additionally, negative cash flow from investing activities amounted to Rs 0.02 crore for the period ended July 31, 2025; Rs 2.97 crore in FY25; Rs 1.40 crore in FY24; and Rs 0.09 crore in FY23. This was mainly on account of machinery acquisitions. Furthermore, the company reported negative cash flow from financing activities amounting to Rs 2.81 crore in FY24 and Rs 2.14 crore in FY23, due to payments of interest and repayment of borrowings. Sustained or significant negative cash flows could adversely affect the company’s liquidity, operations, and ability to implement future expansion plans.

Shining Tools derives a substantial portion of its revenue from customers located in Gujarat. Revenue from this state accounted for 93.50 percent of the company’s total revenue for the period ended July 31, 2025, 92.68 percent in FY25, 88.95 percent in FY24, and 89.96 percent in FY23. Furthermore, the company’s sole manufacturing facility and registered office are located in this state. This dependence on a single geographical region exposes it to local risks, including social unrest, natural disasters, political changes, or economic slowdowns within Gujarat.

Shining Tools operates in an industry with relatively low entry barriers and no specific regulatory body overseeing operations. The company faces intense competition from both domestic and multinational players in the solid carbide cutting tools segment. Since the products are not niche and are widely available, the company’s ability to retain clients and acquire new customers depends on pricing, production lead time, product quality, and after-sales support. Any inability to maintain competitive efficiency, adapt to new technologies, or meet client expectations could adversely impact the company’s market position, revenue, and profitability.

Shining Tools’ business operations are significantly dependent on trade receivables and inventories. As of July 31, 2025, the company’s current assets stood at Rs 10.93 crore, representing 48.54 percent of total assets. This is an increase from 45.78 percent in FY25 and 36.12 percent in FY24. Fluctuations in trade receivables and inventories may indicate slower collection cycles, demand volatility, or inefficiencies in working capital management. Inability to effectively manage receivables, optimise inventory levels, or address liquidity fluctuations could adversely affect the company’s profitability, cash flow, and overall financial position.

As of July 31, 2025, the company had financial indebtedness of Rs 8.87 crore. Any failure to service or repay these loans can hurt the company’s operations and financial position.