LAPL Automotive

LAPL Automotive Limited operates a manufacturing facility in MIDC Waluj Aurangabad Maharashtra equipped with state-of-the-art machinery, toolroom facilities and a dedicated testing laboratory, manufacturing three product categories: a Lighting Division producing tail lamps, blinker lamps and headlamps meeting AIS standards; a Motor Division producing starter motors, wiper motors and rotors; and a Mirror Division producing rear-view mirrors for two-wheelers and three-wheelers.

The company operates as both an ODM supplying tailored designs to OEM customers and as an OBM selling branded products under the LAPL name, giving it dual revenue streams across B2B and B2C channels. Revenue grew from ₹61 Cr (FY24) to ₹94 Cr (FY26) alongside PAT tripling from ₹2.17 Cr to ₹8.63 Cr over the same period, though the quantum jump from FY25 onwards has raised reviewer concerns over sustainability. As of June 30, 2026 the company had 73 permanent and 135 contract employees and promoters Anita Neeraj Goyal, Neeraj Satyaprakash Goyal and Shubham Neeraj Goyal hold 96.79% pre-issue stake.

The issue is entirely a fresh issue of 34,46,400 equity shares aggregating ₹32.40 Cr at a price band of ₹88 to ₹94 per share with a lot size of 1,200 shares implying a pre-issue market cap of ₹85.44 Cr and post-issue market cap of ₹117.84 Cr, listing on BSE SME on August 13, 2026.

Proceeds will fund a new manufacturing unit at Auric City Aurangabad (₹19.56 Cr), debt repayment (₹4.79 Cr) and general corporate purposes (₹6.42 Cr). At the upper band, the post-issue P/E of 13.66x FY26 earnings appears reasonable and is broadly in line with recently listed auto component SME peers. Key strengths include proprietary LAPL brand with dual ODM-OBM model, diversified product portfolio across lighting, motors and mirrors, improving margins (EBITDA 8.82% → 16.75% over FY24-26) and near debt-free balance sheet (D/E 0.31 in FY26); key risks include small scale (73 permanent employees, ₹94 Cr revenue), reviewer concerns over sustainability of PAT growth, highly competitive and fragmented auto components segment, customer concentration risk, and the company is fully priced per expert review with recommendation only for cash-surplus medium-term investors.