Gallard Steel Limited (BSE SME)

IPO Details

Key Performance Indicators (KPI)

Company Financial (In ₹Crore)

Peer Comparision (Valuation)

About Company

Incorporated in 2015, Gallard Steel Limited specializes in the manufacturing of engineered steel castings, including mild steel, SGCI, and low alloy castings.

The company provides ready-to-use components, assemblies, and subassemblies catering to sectors such as Indian Railways, defense, power generation, and heavy engineering industries. Its focus lies in delivering high-quality, precision-engineered solutions for a wide range of industrial applications.

Key Sectors Served

• Railways: Components for traction motors and bogie assemblies
• Defense: Cradle assemblies, recoiling cylinders, and trunnion housings
• Power Generation: Guide vanes, bush housings, and fork systems for thermal and hydro turbines
• Heavy Engineering: High-temperature resistant liners for industrial machinery and equipment

Product Portfolio

1. Steel Components:
   Production of unmachined and machined steel components for multiple sectors.
2. Traction Motor & Bogie Components:
   Manufacturing precision components for railway traction motors and bogie systems.
3. Defense Components:
   Supplying cradle assemblies, recoiling cylinders, and trunnion housings for defense applications.
4. Thermal & Hydro Turbine Sub-Assemblies:
   Producing guide vanes, bush housings, and fork systems used in turbine operations.
5. Industrial Machinery & Equipment:
   Offering high-temperature resistant liners for heavy industrial use.
6. Rebonded Foam:
   Eco-friendly recycled foam utilized in furniture, mattresses, and industrial products.

Strength

Integrated In-House Manufacturing Facilities: The company operates fully equipped casting and machining units in Pithampur, Madhya Pradesh, enabling complete in-house production. This integration ensures better process coordination, improved planning, reduced external dependency, and efficient inventory management.

Strong Quality Control Systems: Gallard Steel follows a stringent quality assurance process from raw material inspection to final product testing, including spectrometer analysis, destructive and non-destructive tests, ensuring consistent, defect-free, and standardized product quality.

Diversified Customer Base: The company serves a wide range of industries, including defense, power generation, engineering, industrial solutions, and railways, showcasing its ability to meet varied sectoral demands and maintain business stability.

Weakness

High Dependence on Railway Sector: A large share of revenue comes from traction motor and bogie assembly components supplied to the railway sector. Any decline in railway demand could significantly impact the company’s business performance and financial results.

Revenue Concentration Among Few Customers: The company’s top ten customers contribute a major portion of revenue (over 85–90%). The loss or order reduction from any key customer could materially affect cash flows, profitability, and overall operations.

Lack of Long-Term Supplier Contracts: The company does not have fixed agreements with raw material suppliers. Any price rise, shortage, or quality issue in essential materials like steel scrap, casting sand, and resins could adversely impact production costs and business continuity.