Skip to content
InnerKore IPO

SJP Ultrasonics Limitedbusiness model

MARKET DOMAININDUSTRY DOMAINMACRO LEVELMICRO LEVEL1Macro-market+83Industry−12Micro-market+54Competitiveadvantage+47Connections06Execution−35Aspirations+8TeamDOMAINS

Tap any area to jump to its detail.

Is it a good business, and why? We read the Prospectus through the seven domains of John Mullins' framework: the market, the industry, the company's edge and the team behind it. Every rating follows a stated rule, with the evidence shown.

Each domain has its own score; there is no overall score and no buy or sell verdict. Based on the filing dated 23 Oct 2026. This is not investment advice.

The SJP Ultrasonics Limited IPO pageSource filing
1

Macro-market

Is the overall market big, growing and supported by trends?

Market domain · macro level

+8

The filing states India's industrial automation market is projected to grow from USD 8.4 billion in FY 2020 to USD 19.4 billion in FY 2026.

How it was scored: +8: 11 favourable, 2 neutral and 0 unfavourable among 13 statements and outside facts.

Outside facts: 3 facts found about its market and industry that the filing does not give.

Evidence (10 from the filing, 3 independent)

What the company says

  • +Global economic growth is projected to settle at approximately 3.2% in 2027.p.103
  • +India's economic growth for 2025 was revised upward to 7.6%.p.104
  • +The services sector retained its position as the largest contributor to GVA, rising to 52.7% in FY 2026.p.104
  • 0The industrial sector's contribution to GVA increased marginally from 29.4% in FY 2025 to 29.5% in FY 2026.p.104
  • +India recorded a 7% surge in industrial robots installation in FY 2025-26, making it the 6th largest installer worldwide.p.104
  • +The Indian industrial automation market is expected to grow from USD 8.4 billion in FY 2020 to USD 19.4 billion in FY 2026.p.106
  • +India's industrial automation solutions industry is expected to grow from USD 19.40 billion in FY 2026 to USD 29.43 billion by FY 2029, registering a CAGR of 14.9%.p.110
  • +The PLI Schemes have generated cumulative production of ₹11.31 lakh crore, cumulative investment of ₹20,972.00 crore, and cumulative direct employment of 1.79 lakh persons as of March 31, 2026.p.112
  • +The National Policy on Electronics, 2019, envisions positioning India as a global hub for Electronics System Design and Manufacturing.p.154
  • 0The industrial automation and plastic welding solutions market in India is experiencing a transformation driven by Industry 4.0, IoT integration, and the adoption of advanced laser welding technologies.p.118

What credible outside sources say

  • Found independently, about India

    +FDI equity inflows in India's manufacturing sector increased by 69% from Rs. 8,37,191 crore (US$ 97.7 billion) during 2004-14 to Rs. 14,14,742 crore (US$ 165.1 billion) during 2014-24.

    “The government reports indicate a 69% increase in FDI equity inflows in the manufacturing sector from Rs. 8,37,191 crore (US$ 97.7 billion) during 2004-14 to Rs. 14,14,742 crore (US$ 165.1 billion) during 2014-24.”
    IBEF · Primary source · checked 2026-10-31

  • Found independently, about India

    +India has 133 unicorn startups as of October 2026, with eight new entrants in 2026.

    “India has 133 unicorn startups as of October 2026, with eight new entrants in 2026, marking a 25% increase over the same period last year.”
    IBEF · Primary source · checked 2026-10-31

  • Found independently, about India

    +Indian exports are expected to reach US$ 1 trillion by 2030.

    “According to Minister of Commerce and Industry, Consumer Affairs, Food and Public Distribution and Textiles Mr. Piyush Goyal, Indian exports are expected to reach US$ 1 trillion by 2030.”
    IBEF · Primary source · checked 2026-10-31
2

Micro-market

Is the target customer segment attractive, and does the product beat the alternatives?

Market domain · micro level

+5

The filing states top five customers contributed 59.41% of revenue and a significant portion comes from Maharashtra, indicating concentration risk.

How it was scored: +5: 4 favourable, 1 neutral and 2 unfavourable among 7 statements and outside facts; measured figures count double: 2 healthy, 0 to watch, 0 weak.

Outside facts: No facts about its market and industry have been found from outside sources yet.

Worked out from its numbers

Sales growth
+26.1%

FY26 on the year before

Sales CAGR, 2 years
+32.1%

FY24 to FY26

What could go wrong

  • The Company's top ten customers contributed 55.28% of total revenue in the fiscal year ended March 31, 2026.
  • The Company's top five customers contributed 59.41% of total revenue in the fiscal year ended March 31, 2026.
Evidence (7 from the filing, 0 independent)

What the company says

  • +The Company's top ten customers contributed 55.28% of total revenue in the fiscal year ended March 31, 2026.p.143
  • +The Company's top five customers contributed 59.41% of total revenue in the fiscal year ended March 31, 2026.p.143
  • 0The company operates through a marketing and sales network comprising 14 personnel to serve clients across multiple industries and geographies.p.151
  • −A significant portion of the company's revenue is generated from a limited number of large customers.p.20
  • −A significant portion of the company's revenue comes from the state of Maharashtra, where the manufacturing unit is located.p.22
  • +The company has expanded its geographical presence by setting up offices and demo centres in Vasai, Pune, Gurgaon, Haryana, Chennai, and Tamil Nadu.p.126
  • +The issuer has expanded its state-wise presence by setting up offices or demo centres in Gurgaon, Haryana; Chennai, Tamil Nadu; and Vasai and Pune, Maharashtra.p.147
3

Industry

Is the industry structurally attractive: suppliers, buyers, rivals, new entrants and substitutes?

Industry domain · macro level

−1

The filing states the company operates in a niche segment with no peers and serves mainly the automotive industry via Tier 1 suppliers.

How it was scored: -1: 2 favourable, 5 neutral and 3 unfavourable among 10 statements and outside facts.

Outside facts: No facts about its market and industry have been found from outside sources yet.

What could go wrong

  • The Company's top ten suppliers contributed 55.28% of total revenue in the fiscal year ended March 31, 2026.
  • The Company's top five suppliers contributed 59.41% of total revenue in the fiscal year ended March 31, 2026.
  • The company's purchase of raw materials and equipment is heavily concentrated with just two top suppliers, representing 38.25% and 46.32% of total purchases respectively for the years ended March 31,
Evidence (10 from the filing, 0 independent)

What the company says

  • −The Company's top ten suppliers contributed 55.28% of total revenue in the fiscal year ended March 31, 2026.p.143
  • −The Company's top five suppliers contributed 59.41% of total revenue in the fiscal year ended March 31, 2026.p.143
  • −The company's purchase of raw materials and equipment is heavily concentrated with just two top suppliers, representing 38.25% and 46.32% of total purchases respectively for the years ended March 31, 2024 and 2025.p.22
  • +The National Policy on Electronics, 2019, seeks to create an enabling environment for the industry to compete globally.p.154
  • 0The company procures and distributes fiber, UV, and Co2 laser marking and cutting machines.p.136
  • +The company operates in a niche and highly specialised segment with no directly comparable peer companies.p.21
  • 0The company serves mainly the automotive industry by supplying machines to leading Tier 1 suppliers engaged in automotive manufacturing.p.127
  • 0The company manufactures plastic tools and machines used across small and medium scale industries in China.p.129
  • 0The company provides installation, training, and support services for its machines and tools.p.128
  • 0The company operates in the Industry Automation and Plastic Joining Solutions sector.p.148
4

Competitive advantage

Can the company keep an edge, and does the business model make economic sense?

Industry domain · micro level

+4

The filing states the company claims strong ROE and ROCE, but computed figures show a -52% cash conversion, indicating a shortfall in cash generation relative to profit.

How it was scored: +4: 5 favourable, 4 neutral and 1 unfavourable among 10 statements and outside facts; measured figures count double: 3 healthy, 1 to watch, 1 weak (Cash conversion).

Worked out from its numbers

Operating margin
31.1%

FY26; -1.3 points on the year before

Net profit margin
19.7%

FY26

Return on equity
13.0%

FY26

Debt to equity
0.14x

FY26

Cash conversion
-52% of profit

operating cash flow ₹-2.7 Cr against net profit ₹5.2 Cr, FY26

What could go wrong

  • The company's brand protection may be affected if there is a delay or inability to secure trademark registration.
Evidence (10 from the filing, 0 independent)

What the company says

  • +The company's Return on Equity (ROE) for the year ended March 31, 2026, is 30.01%.p.97
  • +The company's Return on Capital Employed (ROCE) for the year ended March 31, 2026, is 38.49%.p.97
  • 0The company proposes to purchase 12 machines across three verticals, including Milling Machines, CNC Lathe Machines, Compressors, Robots, and Software, with a total estimated cost of ₹24.69 lakhs.p.77p.78p.79p.80
  • 0Unique Circle Automation Pvt Ltd was founded in Pune in 1995 by Parag Shah and operates a 53,000 sq ft facility in India with in-house capabilities for CAD/CAM design, CNC machining, and welding.p.121
  • +The company develops 3-axis and 6-axis pick and place automation systems with payload ranges from 5kg to 35kg.p.134
  • 0The company's installed capacity is 650 units, with actual production reaching 579 units in the fiscal year ending March 31, 2024.p.150
  • +Laser welding enables hermetic sealing and clean joints without introducing contaminants, meeting strict hygiene and performance requirements set by regulatory bodies like the FDA and ISO 13485.p.116
  • 0The company manufactures servo and stepper motor rotary machines with cavities ranging from 4 to 16 stations.p.135
  • −The company's brand protection may be affected if there is a delay or inability to secure trademark registration.p.20
  • +The proposed acquisition equipment is new and has not been previously owned or utilized by any party.p.83
5

Team: aspirations

What do the promoters want from this IPO: to sell down or to grow the company?

Team domain

+8

The filing states the net proceeds will fund debt repayment, capital expenditure, working capital, acquisitions, and general corporate purposes.

How it was scored: +8: 2 favourable, 1 neutral and 0 unfavourable among 3 statements and outside facts; measured figures count double: 1 healthy, 0 to watch, 0 weak.

Worked out from its numbers

Promoter holding before the IPO
79.5%
Proceeds used to repay debt
-0%

₹13.2 Cr of ₹21.2 Cr for growth (capex, acquisitions, technology, marketing)

What could go wrong

  • The Company intends to utilize ₹492.00 lakhs from Net Proceeds to fund working capital requirements of its Company in Fiscal 2027.
  • The use of IPO proceeds is categorized into three specific line items: incurring capital expenditure for machinery, funding working capital requirements, and general corporate purposes.
Evidence (3 from the filing, 0 independent)

What the company says

  • +The Company intends to utilize ₹492.00 lakhs from Net Proceeds to fund working capital requirements of its Company in Fiscal 2027.p.86
  • 0The use of IPO proceeds is categorized into three specific line items: incurring capital expenditure for machinery, funding working capital requirements, and general corporate purposes.p.83
  • +The net proceeds from the issue will be used for debt repayment, capital expenditure, working capital, acquisitions, and general corporate purposes.p.96
6

Team: execution

Can the team deliver what the industry demands?

Team domain

−3

The filing states the team's remuneration is disclosed, but the company faces financial exposure and legal proceedings involving its directors and promoters.

How it was scored: -3: 2 favourable, 3 neutral and 5 unfavourable among 10 statements and outside facts.

What could go wrong

  • The company faces financial exposure from direct tax matters involving its directors, with an amount of 1.65 lakhs.
  • The company faces financial exposure from criminal matters involving its directors and promoters, with an amount of 20.20 lakhs.
  • The company has outstanding criminal and direct tax legal proceedings involving its directors and promoters.
Evidence (10 from the filing, 0 independent)

What the company says

  • +Jignesh Pravinchandra Parekh received ₹18.00 lakhs in remuneration as of March 31, 2026.p.51
  • +Rupal Jignesh Parekh received ₹15.01 lakhs in remuneration as of March 31, 2026.p.51
  • −The company faces financial exposure from direct tax matters involving its directors, with an amount of 1.65 lakhs.p.24
  • −The company faces financial exposure from criminal matters involving its directors and promoters, with an amount of 20.20 lakhs.p.24
  • −The company has outstanding criminal and direct tax legal proceedings involving its directors and promoters.p.24
  • 0The Board of Directors includes Jignesh Parekh as Chairman and Managing Director.p.54
  • 0The Chief Financial Officer is Chirag Natvarlal Barot.p.54
  • 0The Lead Manager is responsible for appointing a replacement Market Maker upon termination.p.60
  • −The company is involved in a civil dispute regarding a loan agreement where it is the defendant.p.305
  • −The company is involved in a tax-related legal proceeding.p.305
7

Team: connections

Does the team have the ties across the value chain: customers, suppliers, partners?

Team domain

0

The filing states the company relies on subsidiaries and joint ventures to deliver services and notes that business will be materially adversely affected if key customer relationships are lost.

How it was scored: +0: 1 favourable, 3 neutral and 1 unfavourable among 5 statements and outside facts.

What could go wrong

  • The company's business, results of operations, and financial condition will be materially and adversely affected if it is unable to maintain relationships with its key customers.
Evidence (5 from the filing, 0 independent)

What the company says

  • 0We have in the past entered into related party transactions and may continue to do so in the future.p.30
  • +The Company has established long-standing relationships with several customers on a pan-India basis.p.143
  • 0The company maintains banking relationships with Saraswat Co-Operative Bank Limited for working capital management.p.148
  • 0The company relies on its subsidiaries and joint ventures to deliver its services across India.p.153
  • −The company's business, results of operations, and financial condition will be materially and adversely affected if it is unable to maintain relationships with its key customers.p.20

How to read this

What the ratings mean, where the evidence comes from, and what this page is not.

Three kinds of evidence, always labelled

What the company says comes from its own offer document, with the page it came from. It is a claim, not a finding. Worked out from its numbers is arithmetic on the filing's own financial statements and issue terms. Independent sources are outside publications we trust, with the name, tier and date.

How a rating is set

  • Every piece of evidence points one way: favourable (+1), neutral (0) or unfavourable (-1). The score is the average of those, times ten, so it runs from -10 to +10.
  • It is an average, not a total: twelve favourable facts score the same as four. Only their balance counts.
  • Figures worked out from the filing's numbers count double: healthy is +1, to watch is -0.5, weak is -1. A figure and its peer comparison count once.
  • The company's own statements and the outside facts about its market and industry are each read by the model, which only says which way a sentence points; every sentence stays visible.
  • “Not enough evidence” appears only when nothing at all was found for the domain.

Which outside sources count

Facts about a company's market and industry come from a fixed list: regulators and exchanges (SEBI, NSE, BSE, MCA, RBI), government and industry bodies, credit-rating agencies, and established business press. Blogs, forums, social media and Wikipedia are excluded. Each is kept with the exact sentence it rests on. We do not check what the offer document itself says against the web: that is SEBI's job.

About the framework

The seven domains come from John Mullins' The New Business Road Test, written for new ventures. We adapt each domain to what an IPO document can show. The author has not reviewed or endorsed this analysis. Read it with the filing, not instead of it.