Rajputana Stainless Limited engaged in the business of manufacturing of long and flat stainless-steel products comprising of billets, forging ingots, rolled black bar, rolled bright bar, flat & patti and other ancillary products under the brand name of 'RSL'. They offer the products in more than eighty (80) diverse grades of stainless steel reflecting the ability to meet varied technical and application-specific requirements. Presently, they operate exclusively on Business-to-Business ('B2B'), catering to a customer base that primarily comprises manufacturers and traders. The products are used across a diverse range of industries, including bar processing, seamless pipes, forging, wire manufacturing, engineering, casting, fasteners, utensils manufacturing, pump and shaft and auto industry. A majority of the products (around 98.36% in FY25) are primarily sold domestically through direct sales and traders' network. In addition to catering to domestic market, presently the products are being exported to Nine (9) countries, including market of Turkey, UAE, Poland, Portugal, USA, South Africa, South Korea, Czech Republic and Kuwait. During the period ending Fiscal 2025, company catered to over 370 customers, out of which around 167 customers have been associated with them for over a period of 3 years, and such customers contributed Rs 70,684.93 lakhs to total revenue from operations which amounted to 75.83% of total revenue from operations of Fiscal 2025. Company presently sells their products in fourteen (14) states and two (2) union territories through direct sales and through their traders' network. They generate significant revenue from operations from the state of Maharashtra, Gujarat and Uttar Pradesh which amounts to Rs 45,684.91 lakhs, Rs 84,500.50 lakhs, Rs 79,245.58 lakhs and Rs 86,416.05 lakhs constituting 91.09%, 90.65%, 87.10% and 91.19% of total revenue from operations during the 6M FY26 and for FY25, FY24 and FY23, respectively. Company primarily operates through its manufacturing facility, admeasuring approximately 35,196.98 Sq.m (including unutilised area of the land approximately 17,610 Sq. m), located at Halol Kalol Road, Kalol, Panchmahal, Gujarat. Their Manufacturing Facility is equipped with an induction furnace, Argon Oxygen Decarburization ('AOD'), Continuous Casting Machine ('CCM'), heat treatment facilities, Oxygen and Nitrogen Plant, rolling mill and bright bar shop. As on September 30, 2025, they had an installed melting capacity of 48,000 MTPA, rolling capacity of 36,000 MTPA and bright bar capacity of 6,000 MTPA, heat treatment facility of 2,000 MT and Oxygen and Nitrogen plants having installed capacity of 350 cum/hour and 200 cum/hour respectively. Their Manufacturing Facility is also supported by infrastructure for storage of raw materials, finished goods, and quality control measures. They also engage third party manufacturing units on job work basis to cater to the increased demand of their products as per the requirement. During September 30, 2025, and Fiscal 2025, 2024 and 2023, they derived 534.77 MT, 2,990.82 MT, 6,800.27 MT and 3,455.49 MT of stainless-steel products through third party manufacturing units on job work basis. They primarily engage third party manufacturing unit on job work basis for conversion of black bar into bright bars, billets into wire rods, annealing, straightening, etc. as per the requirement. Further, company proposes to expand the manufacturing operations through forward integration and product diversification by utilizing a portion of the vacant land within the premises of their existing manufacturing facility to set up a plant for manufacturing stainless-steel seamless pipes, which is one of the object of Fresh Issue. As per financial performance, Rajputana Stainless Limited has posted total income / net profits of Rs 950.69 Cr / Rs 24.04 Cr (FY23), Rs 915.50 Cr / Rs 31.62 Cr (FY24), Rs 937.48 Cr / 39.85 Cr (FY25) and Rs 502.76 Cr / 24.40 Cr (upto Q2 FY26). So as per previous financials data, company has shown almost static sales, but net profit increased. Company has an average EPS of Rs 5 and average RoNW of 27.44% for last three fiscals. Issue is priced at a P/BV of 4.76 as per NAV of Rs 25.63/- as on 30.09.25. If we attribute latest earnings of FY24, FY25 and annualised FY26 on equity post issue, then asking price is at a P/E of around 32.23, 25.58 and 20.88 respectively. As per RHP, comparison between listed peers are shown in the above market. On BRLM's front, Nirbhay Capital Services Private Limited are associated with this IPO, and has handled 5 IPOs in last three fiscal years. ( As on 02.03.26 ) As per financials, Rajputana Stainless Limited has shown almost static sales, RoNW is 26.23% and P/E is 32.23, 25.58 and 20.88 respectively as per FY24, FY25 and annualised FY26 earnings. So issue looks aggressively priced. Company is in the business of manufacturing of long and flat stainless-steel products, which is highly competitive business segment. So, we give AVOID rating for this IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.
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