Scoda Tubes Limited is a stainless-steel tubes and pipes manufacturer based in India having over 14 years of experience. The products are broadly categorised into: (i) seamless tubes/pipes; and (ii) welded tubes and pipes, under five (5) product lines, namely, (i) stainless steel seamless pipes; (ii) stainless steel seamless tubes; (iii) stainless steel seamless 'U' tubes; (iv) stainless steel instrumentation tubes; and (v) stainless steel welded tubes and 'U' tubes. Company markets the Products under the brand, 'Scoda Tubes Limited'. The Products are used by a diverse range of customers like engineering companies, EPC and industrial companies engaged in Oil and Gas, Chemicals, Fertilisers, Power, Pharmaceuticals, Automotive, Railways and Transportation sectors. In addition, they operate a hot piercing mill for the production of mother hollow, which is the principal raw material for the stainless-steel seamless products. Currently, the hot piercing mill has a production capacity of 20,000 MT per annum. Currently, any quantities of mother hollow in excess of the captive consumption are sold in the open market. In addition to our manufacturing business of seamless tubes/pipes and welded tubes and pipes, they also generate revenue from sale of services which consists of revenue earned from job work services like annealing, straightening, pickling and marking provided to other customers. Company has one manufacturing plant which is strategically located at Mehsana, Gujarat in close proximity of around 360 kilometres from the Mundra port, which serves as a key port for exports, and is located 23 kilometres from Inland Container Depot, ensuring sound access and connectivity, and aiding them in reducing the logistics costs. The Manufacturing Facility utilizes a plot of land measuring 21,199 sq. mtrs. and has separate seamless and welded divisions with product-specific equipment and machineries, including hot piercing mill, pilger mills, expanding machine, cold drawing lines, bright annealing furnace, eddy current testing machine, hydro testing machine, Spectro testing machine, tensile testing machine TIG/MIG welded tube mill, etc. As of December 31, 2024, the Manufacturing Facility has a total installed capacity of 20,000 MT per annum of mother hollow, 10,068 MT per annum of seamless products and 1,020 MT per annum of welded products. Company caters to both the domestic as well as the international markets. In the domestic market, they sell the Products to stockists, engineering, EPC and industrial companies engaged in Oil and Gas, Chemicals, Fertilisers, Power, Pharmaceuticals, Automotive, Railways and Transportation sectors. In particular, they have a stockist based in Maharashtra authorised to exclusively sell their products in India. In the United States market, they have a stockist authorised to exclusively sell their products in the United States market. Further, they supply the Products through stockists in Italy, Germany, Austria and Eastern European markets. For the nine months period ended December 31, 2024, they supplied to a total of 26 stockists in the domestic and international markets. In For the nine months period ended December 31, 2024, they have exported to 11 countries including United States, Germany, Netherlands, Italy, Spain and several others. The revenues from exports aggregated to Rs 1,009.96 million, Rs 832.24 million Rs 941.21 million and Rs 592.14 million for nine months period ended December 31, 2024 and for the Fiscals 2024, 2023 and 2022, respectively, and as a percentage of the revenue from operations, were 27.96%, 20.82%, 30.84%, and 30.52%, respectively. As per financial performance, Scoda Tubes Limited has posted total income / net profits of Rs 195.05 Cr / 1.65 Cr (FY22), Rs 307.78 Cr / 10.33 Cr (FY23), Rs 402.49 Cr / Rs 18.30 Cr (FY24) and Rs 363.48 Cr / 24.93 Cr (Q3 FY25). So as per previous financials data, company has shown good growth. Company has an average EPS of Rs 3.28 and average RoNW of 22.77% for last three fiscals. Issue is priced at a P/BV of 4.31 as per NAV of Rs 32.48/- as on 31.12.24. If we attribute latest earnings of FY23, FY24 and annualised FY25 on equity post issue, then asking price is at a P/E of around 81.17, 45.83 and 25.23 respectively. As per RHP, comparison between listed peers is shown in above table. On BRLM's front, Monarch Networth Capital Limited is associated with this IPO, and have handled 2 IPOs in last three fiscals. ( As on 23.05.25 ) As per financials, Scoda Tubes Limited has shown good growth, RoNW is 28.77% and P/E is 81.17, 45.83 and 25.23 respectively as per FY23, FY24 and annualised FY25 earnings. So issue looks fully priced when compared with peers and it needs to be observed if company may maintain same margins in future. Company is a stainless-steel tubes and pipes manufacturer based in India, which is very competitive business segment. So, we give NEUTRAL rating for this IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.
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