PS Raj Steels Limited IPO

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P S Raj Steels Limited is among the fastest-growing manufacturers and suppliers of stainless-steel pipes and tubes in India. The company specializes in producing a wide range of product sizes, making it one of the few manufacturers in India with such extensive offerings.

Diverse Product Portfolio

The company’s stainless-steel product line includes:
i. Outer Diameter (OD) Pipes: Ranging from ½ inch to 18 inches
ii. Nominal Bore (NB) Pipes: Ranging from 3/8 inch to 18 inches
iii. Section Pipes: Available in square, rectangular, and oval shapes
iv. Slotted Pipes

Additionally, the company takes pride in offering over 250 standard sizes while also providing customized solutions tailored to meet customer requirements.

Revenue Diversification & Trading Business

Beyond its core manufacturing operations, P S Raj Steels Limited has a strong presence in the stainless-steel trading segment. As of:
i. March 31, 2024, approximately 29.81% of total revenue was generated from trading stainless-steel coils & strips, sheets & plates, and bars.
ii. September 30, 2024, approximately 25.42% of total revenue was derived from trading stainless-steel coils & strips, sheets & plates, and bars.

The company’s strategic focus on both manufacturing and trading has helped it maintain strong revenue streams and market competitiveness.

Conclusion

With its extensive product range, customization capabilities, and strong trading business, P S Raj Steels Limited is positioned as a key player in India’s stainless-steel pipe and tube industry. The company’s continued expansion and adaptability to market demands underscore its commitment to growth and customer satisfaction.

Objects of the PS Raj Steels Limited IPO:

The company intends to utilize the proceeds of the Issue to meet the following objectives: - i. To meet the working capital requirements of the Company
DRHP of PS Raj Steels Limited IPO
RHP of PS Raj Steels Limited IPO

PS Raj Steels Limited IPO Details:

Open Date: Feb 12 2025
Close Date: Feb 14 2025
Total Shares: 20,20,000
Face Value: ₹ 10 Per Equity Share
Issue Size: 28.28 Cr.
Lot Size: 1000 Shares
Issue Price: ₹ 132 - 140 Per Equity Share
Listing At: NSE Emerge
Listing Date: Feb 19 2025

Promoters And Management:

Mr. Deepak Kumar, 48, Managing Director of P S Raj Steels Limited, brings 28+ years of experience, having joined his father’s business in 1996. Holding an MSc in Applied Psychology (2001) and an LLB (2000), he blends analytical and legal expertise to drive strategic growth. His leadership, marked by innovation and a strong work ethic, has been key to the company's success and market expansion. Mr. Gaurav Gupta, 43, Whole-Time Director of P S Raj Steels Limited, has 20+ years of experience in the stainless-steel industry and has been with the company since 2005. Holding a Bachelor's in Computer Applications, he oversees production, dispatch, and raw material procurement. His technical expertise and strategic approach drive operational efficiency and business growth. Ms. Nikita Gupta, 38, Non-Executive Director of P S Raj Steels Limited, has 7 years of experience in the stainless-steel industry and has been with Sheela Stainless Pvt. Ltd. since 2017. A Fashion Design graduate (2007), she brings creativity, strategic vision, and innovation, contributing to the company's growth and success.

Financials of PS Raj Steels Limited IPO:

(In Crores)
Particulars Sep 30, 2024 March 31, 2024 March 31, 2023 March 31, 2022
Revenue from Operations 139.11 297.74 225.42 179.71
EBITDA 6.35 10.80 6.94 6.70
EBITDA Margins 4.57% 3.63% 3.08% 3.73%
PAT 3.86 6.36 3.65 3.57
PAT Margins 2.78% 2.14% 1.62% 1.99%
ROCE 20.64% 14.56% 15.75%
D/E Ratio 0.49 0.58 0.74 0.83
CFOA 3.44 4.87 2.56 0.41

Comparison With Peers:

Companies Revenue EBITDA Margins PAT Margins D/E Ratio MCap P/E
PS Raj Steels (FY 2024) 297.74 Cr. 3.63% 2.14% 0.49 105.53 Cr. 16.59
Remi Edelstahl Tubular  (TTM) 124 Cr. 6% 2.42% 0.65 93.10 Cr. 30.10
Venus Pipes & Tubes (TTM) 900 Cr. 19% 11.11% 0.37 2,731 Cr. 27.40
Suraj (TTM) 251 Cr. 17% 8.76% 0.39 665 Cr. 30.80

Recommendation on PS Raj Steels Limited IPO:

Review and Recommendation of PS Raj Steels Limited IPO by team IZ is 2/10.

Lead Manager of PS Raj Steels Limited IPO:

  1. Khambatta Securities Limited

Registrar of PS Raj Steels Limited IPO:

  1. Bigshare Services Private Limited

Company Address:

PS Raj Steels Limited V & P.O Talwandi Rukka Hisar-125001 Phone: +91-9812700024 Email: cs@psrajsteels.com Website: http://www.pssrgroup.com/

Discussion on PS Raj Steels Limited IPO:

1 Comment

    It’s advisable to avoid this, as it operates in a commodity business with EBITDA margins of just 3-4%, making it less attractive

    Reply

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