CFF Fluid Control Limited - SME

CFF Fluid Control Ltd is an Engineering Company creating self reliance by Innovating and Manufacturing customized products and solutions for the defense industry of India.

Immediately after inception, a TOT agreement with Coyard SAS France led to the introduction of new-age fluid control and other mechanical equipment on the under-construction Submarine program of the Indian Navy. Subsequently, under a framework agreement with the collaborator and Designer of the Submarine and various partners from around the world, we are able to provide technological solutions ranging from mechanical to electronics power and communication, locally under Make in India.

Industries Served -

  1. Defense
  2. Energy

Sevices provided -
a. Manufacturing (Manufacturing Critical components, Assemblies, Sub-Assemblies, Equipments)
b. Support Services (Repair and Maintenance)
c. Strategic Projects

Products -

  1. Fluid system for submarine
  2. Antenna and navigation System for submarine
  3. Weapon systems(Torpedo, Tubes and Fire Controls)

Revenue Breakup (FY 21-22)

  1. Defense - 89.43%
  2. Non- Defense - 10.57%

Its manufacturing facility is situated at Khopoli,Maharashtra and is spread over 6,000 sq. mtrs. The facility is approved by Indian Navy, MDL & Naval Group (France) and has ISO 9001:2015 certification for quality management systems.

Important Notes -

They have a robust order book as on December 31, 2022 of Rs.9,004.00 lakhs of which
over 90 % pertains to orders from Indian Navy (including its OEMs)

They have entered into additional product line for submarine which is Towed Wire Antenna (TWA) which is used as an underwater communication device. To manufacture this product we have entered Letter of Intent (LoI) with Nereides, France who is engaged in manufacturing TWA, who will over the years transfer us its technology, process, knowhow and product development. They have agreed to remit amount not exceeding Euro 1 million for the transfer

The projects of Submarines in which they have supplied components have also authorized them for Repair and Maintenance of the same - (Life of a submarine is 30 years)

Indian Navy Fleet Plan - From 137 today to 200 by 2027

Raw Materials required are mostly locally procured and easily available(Nickel- Aluminum- Bronze, Copper- Nickel, Copper Aluminum, Titanium). Only around 8% of the raw materials used are imported.

IPO Issue Size - Approx 85 cr
Funding WC requirements - 29.41 cr
Repayment of Loans - 21 cr
Purchase of Plant and MAchinery(Capacity expansion) - 9 cr
Acquire Technology of TWA - 8.5 cr
General Corporate Purpose - 16.71 cr

EBITDA - 24% app, PAT - 14% app, P/E - 45.7 , CMP - Rs.183

Risk Factors -

  1. 74% of the Total Borrowings are unsecured borrowings.
  2. Some Licenses and permits are required to be re-issued from time to time.
  3. As mentioned in the Prospectus - it has Negative cash flow from Operating Activities
  4. High Inventories and Trade Receivables- As at December 31,2022
  5. Very High Working Capital requirements as projected in the prospectus-

Not Invested.
Suggestions and views required.

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There is no information about promoter and shareholding on moneycontrol platform.

The information is in the Prospectus.

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This is on fire now, would be interesting to know your view now

Well this is actually a untested company in the sense that many few people know about this company( not really popular) among investors and analysts.
They are continuously bagging orders and the inclination of the government for defence is getting stronger day by day. Navy is a part of defence- and India is surrounded by water on 3 sides. So, the requirement should definitely be also high.
They make submarine parts and also R&M of the submarine for 30 years. So there is business always.

Disc : Invested.


I have invested in CFF with decent gains, lets know if we can stay invested, prospects, probable targets

I think we should wait for the September results. It will actually bring a clearer picture that whether the company is only receiving orders or is it actually executing them.


It’s not a results story. 3 Submarine P75 repeat order plus 6 sub P75i which is long term

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From Annual Report 2023.


Thanks for creating the thread!!!

CFF is a very unique defence play as it’s the only indigenous submarine component supplier in India with no competition and is going to immensely benefit from government make in india plan as they are going to receive very big orders from new submarines. They already have all tech transfer in place so they are fully ready to make full use of this opportunity.

Also, they keep on getting recurring high margin spares business for maintaining existing submarine fleet which is cash cow for them…

I would strongly suggest to go through the latest AR where the promoter has laid down their plans for upcoming opportunity


Latest order received by the company.
CFF ORDER.pdf (219.6 KB)

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CFF has reported excellent H1 FY24 numbers with H1 PAT equal to FY23 full year PAT. H2 numbers should be much better given the high amount of orders they have won in last 2-3 months.

CFF is a solid defence story with great potential going forward. India is negotiating 3 new scorpene submarines with France for 30,000crs and insisting 60% indigenious content. CFF already has done ToTs for 3-4 technologies for the submarines and should get a decent chunk of 24,000crs pie in next 1-2 years.

Exciting times ahead!!!


Very good results as expected.
But I feel the problem is cash flow.
Considerable increase in Inventories and majorly Trade Receivables. Cash generation is also necessary as much as Increase in Sales and Profits.

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In Defence business, inventories and receivables are always high across the sector.

But definitely needs to be watched during H2 results!!!

They have posted their investor presentation. Worth a look.
cff fluid control.pdf (909.2 KB)


My biggest worry is negative cash flows. What’s your take on that observation? Along with the investor presentation, the management should hold regular con calls for better visibility. Thanks.

@ca.ankitarathi Nice Thread.

Definitely looks good. Have you estimated the Forward Earnings for for FY 24/FY25 based on the order book.

Well, the company performed better in September 2023 results than MArch 2023 half yearly and Sep 2022 half yearly results.
The current order book is 113 cr.
Sep 2023 sales - 59 cr
Even if we consider same sales in Sep 2023 half yearly, i.e., 59cr

Then total sales for FY 2023-24 (Assumption) = 59 *2 = 118 cr
Last year sale FY 2022-23 = 71 cr

Growth (Expected ) = Approx 40%



I personally think H2 will show more growth in terms of Order Book expansion. Expecting 50% growth in financials. The Area in which they are working is very critical and vital areas. (I am very bullish on this Co.)

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