Lohia Corp Limited (Neutral)

Highlights

Lohia Corp Limited, incorporated in 2023 (with roots tracing back to 1981), is engaged in the business of manufacturing machinery and equipment for the technical textiles industry, establishing a prominent position in the specialized machinery sector.

The company is one of the world’s leading manufacturers of machinery used for polypropylene (PP) and high-density polyethylene (HDPE) fabric production and raffia (sacks), catering to global industries that require specialized equipment built for strength, durability, and high-performance packaging.

Their business is primarily classified as: (i) tape extrusion lines; (ii) circular weaving looms and winding systems (iii) coating, lamination, printing, and conversion machines. (iv) multifilament yarn and monofilament extrusion lines, alongside recycling systems (iv) multifilament yarn and monofilament extrusion lines.

Lohia Corp manufactures and supplies a comprehensive portfolio of advanced textile and plastics processing machinery, serving customers across more than 90 countries. Its equipment is widely used in the production of woven sacks, FIBCs (Flexible Intermediate Bulk Containers), geotextiles, agro-textiles, tarpaulins, container liners, and other industrial packaging and global footprint (including manufacturing facilities in India, the USA, and Italy) have helped establish a strong market position in the global technical textile machinery industry.

They also offer comprehensive end-to-end lifecycle solutions for technical textile manufacturers, with capabilities that include plant layout design, machinery installation, technical training, equipment commissioning, and after-sales support, backed by live experience centers and dedicated R&D facilities.

The IPO is entirely an Offer for Sale of Rs. 11,012 mn. Consequently, the company will not receive any proceeds from the IPO. Company expects that listing of the Equity Shares will enhance their visibility and brand and provide liquidity to its existing Shareholders.

Key Highlights

• In India, the technical textiles market is expected to grow at a CAGR of 10.5 pct between FY25 and FY30, from USD 28.5 bn to USD 47.0 bn. Of this, the Indian woven Raffia market stood at USD 8.4 bn in FY25, with a share of 29.5 pct of the total technical textile market in India.
• The company is well-positioned to capitalize on capital expenditure cycles driven by government initiatives like PLI scheme for textiles and rising export volumes. As of FY25, Lohia Corp commanded a dominant 40.7 pct market share domestically (by value), while also holding a 15.4 pct share of the global market in 2024.
• The company own and operate 6 machine manufacturing facilities, with four in India and one each in USA and Italy, along with one live experience centre in India. Their manufacturing facilities had an installed capacity to produce 240 tapelines, 13,800 circular looms and 108,000 tape winders annually.
• The company believe their existing position as one of the leading global manufacturers of machinery and equipment for technical textiles by sales in 2024, with a strong focus on solutions for producing Raffia, coupled with their customer relationships and continuous efforts towards technological innovations and upgrades, provides them with a competitive advantage.
• Lohia Corp’s key growth strategies include (i) Expand their footprint in international markets through increased exports and strengthen their global market share by leveraging existing overseas presence. (ii) Strengthen capabilities in the conversion and processing machines segment of the Raffia industry. (iii) Strengthen position in the high-performance fibres and monofilament segment. (iv) Focus on recycling machinery and equipment to advance sustainability initiatives. (v) Continue to focus on improving operational efficiencies. (vi) Augment their scale of operations through selective strategic acquisitions and technical alliances.
• Sales of the company has grown 21 pct CAGR over FY24-FY26 while EBITDA and profit registered CAGR of 79 pct and 154.8 pct over Same period due to low base. In FY26, the company’s sales grew 25 pct YoY to Rs. 17,170 mn, due to health growth in tape extrusion lines, Circular looms, Spare parts for machine. EBITDA came at Rs. 3,395 mn, up 48.5 pct YoY and profit increased 64.3 pct YoY to Rs. 1,935 mn.

Key Risk

• The company derives a significant portion of its sales from the woven raffia machinery segment, which contributed 88.2 pct of sales in FY26. Any slowdown in end-user industries can affect their business.

• International markets contributed 42.2 pct of sales in FY26. Any adverse developments such as economic slowdown, geopolitical tensions, trade restrictions, protectionist measures or currency fluctuations in key overseas markets could adversely their business.

Financial Performance

Source: – RHP.

Peer Comparison based on FY26 Financials

Valuation

Lohia Corp delivers end-to-end machinery solutions for the plastic woven fabric industry. From pioneering Circular Looms to building a complete portfolio across extrusion, winding, lamination, conversion, and multifilament, they enable customers to meet global packaging demands. Backed by strong service, R&D, and a global footprint, the company continue to lead the way in reliability, innovation, and scale. At the upper end of the price of Rs. 425, the issue quotes at PE of 22x on FY26 post issue capital. The issue looks fully priced.

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