Kross Limited IPO Review
Neutral240-240 · Mainboard
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Analyst Verdict
Kross Limited IPO
Neutral
IPO at a Glance
Price Band
240-240
Issue Size
500cr
Min. Investment
₹14,880
Opens
2024-09-07
Closes
2024-09-09
Listing
2024-09-14
Category
Mainboard
Key Strengths
✓In over three decades of its operations, The company has established long-standing relationships with several well-established Indian and global customers like Ashok Leyland, Tata International DLT, and other marquee domestic and global OEMs in the M&HCV segment.
✓The company has a strong track record of sustained growth and robust financial performance in the last three financial years.
✓The company’s five manufacturing facilities in Jamshedpur have obtained ISO 9001:2015 for the manufacture of the axle shaft, PTO shaft, rock shaft, ring gear, hubs, and other ferrous parts from TÜV NORD CERT GmbH and IATF 16949:2016 quality certifications for the manufacture of axle shafts, universal joints, propeller shaft parts, etc.
✓The company has a diversified product portfolio with a focus on continuous value addition and has offered a diverse suite of products to over 200 customers across M&HCV and farm equipment segments, domestic dealers, and fabricators for its trailer axle and suspension business in the last three fiscals.
Key Risks
⚠The company faces customer concentration risk with its top five customers contributing more than 66% in each of the previous three Fiscal) of its revenues. The loss of a major customer or reduction in demand for its products from any of the major customers may adversely affect the business.
⚠The company may face end-user industry risk if the demand for its products is linked to growth and trends in sales of vehicles by the company’s customers.
⚠It does not have firm commitment agreements with its customers. If the customers choose not to source their requirements from the company, there may be a material adverse effect on its business.
⚠The company may face pricing pressure from its customers which may adversely affect the company’s gross margin, profitability, and ability to increase prices.
⚠If the company fails to accurately predict the demand for its products or if customers vary or cancel production orders, it may incur costs associated with excess inventory, including raw material charges, elongated working capital cycle, and storage costs.
Frequently Asked Questions
Should I apply for Kross Limited IPO?
Based on our analysis, our rating for Kross Limited IPO is: Neutral. Review the full analysis including strengths, risks, and financials on CheckIPO before making a decision.
What are the key risks of Kross Limited IPO?
The company faces customer concentration risk with its top five customers contributing more than 66% in each of the previous three Fiscal) of its revenues. The loss of a major customer or reduction in demand for its products from any of the major customers may adversely affect the business. The company may face end-user industry risk if the demand for its products is linked to growth and trends in
What are the strengths of Kross Limited IPO?
In over three decades of its operations, The company has established long-standing relationships with several well-established Indian and global customers like Ashok Leyland, Tata International DLT, and other marquee domestic and global OEMs in the M&HCV segment. The company has a strong track record of sustained growth and robust financial performance in the last three financial years. The compan
What is the price band of Kross Limited IPO?
The price band for Kross Limited IPO is 240-240. The IPO has closed.
Full Analysis Available
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