Scoda Tubes Limited IPO
Scoda Tubes Limited is a leading Indian manufacturer of stainless-steel tubes and pipes, with over 14 years of industry experience. The company offers a wide range of seamless and welded stainless steel tubes and pipes, catering to both domestic and international markets. Its strong backward integration capabilities, robust infrastructure, and adherence to international standards position it as a reliable and quality-driven player in the metal manufacturing sector.
Product Portfolio
The company operates under two broad product categories:
i. Seamless Tubes and Pipes ii. Welded Tubes and Pipes
These are further divided into five key product lines:
i. Stainless Steel Seamless Pipes
ii. Stainless Steel Seamless Tubes
iii. Stainless Steel Seamless “U” Tubes
iv. Stainless Steel Instrumentation Tubes
v. Stainless Steel Welded Tubes and “U” Tubes
All products are marketed under the brand “Scoda Tubes Limited”.
Markets Served
Domestic Market :- Sells through authorized stockists and directly to engineering, EPC, and industrial companies in sectors such as:
i. Oil & Gas ii. Chemicals iii. Fertilizers
iv. Power v. Pharmaceuticals vi. Automotive
vii. Railways & Transportation
International Market :- Exported to 16 countries in FY24, including:
i. United States ii. Germany iii. Netherlands
iv. Italy v. France vi. Spain, and others
Conclusion
Scoda Tubes Limited has established itself as a technologically equipped, quality-focused stainless-steel tube manufacturer with strong global and domestic reach. With its backward integration, certified quality processes, and strategic positioning, the company is well-poised for sustained growth, particularly in sectors requiring precision-engineered stainless steel solutions.
Objects of the Scoda Tubes Limited IPO:
Scoda Tubes Limited IPO Details:
| Open Date: | May 28 2025 |
| Close Date: | May 30 2025 |
| Total Shares: | 1,57,14,286 |
| Face Value: | ₹ 10 Per Equity Share |
| Issue Size: | 220.00 Cr. |
| Lot Size: | 100 Shares |
| Issue Price: | ₹ 130 - 140 Per Equity Share |
| Listing At: | NSE,BSE |
| Listing Date: | Jun 04 2025 |
Promoters And Management:
Financials of Scoda Tubes Limited IPO:
| Particular (In Cr) | 9MFY25 | Mar-24 | Mar-23 | Mar-22 |
| Revenue From Operation | 361 | 400 | 305 | 194 |
| EBITDA | 60 | 59 | 35 | 10 |
| EBITDA Margin | 16.79% | 14.70% | 11.40% | 5.15% |
| PAT | 25 | 18 | 10 | 1.6 |
| PAT Margin | 6.90% | 4.58% | 3.39% | 0.84% |
| ROCE | 13.67% | 15.92% | 12.62% | 5.84% |
| RoE | 17.36% | 28.77% | 22.81% | 4.68% |
Comparison With Peers:
| Name of the Companies | Revenue (Cr) | EBITDA Margin | PAT Margin | P/E | D/E | Mcap (cr) |
| Scoda Tubes Limited | 400 | 14.70% | 4.58% | 47 | 1.4 | 839 |
| Ratnamani Metals & Tubes Limited | 5059 | 18% | 10.4% | 37 | 0.04 | 20167 |
| Venus Pipes & Tubes Limited | 802 | 18% | 10.7 | 31.5 | 0.37 | 2967 |
| Welspun Specialty Solutions Limited | 697 | 8% | 0.94% | 35 | 0.05 | 2181 |
| Suraj Limited | 331 | 12% | 6.14% | 33.3 | 0.39 | 718 |
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Based on annualised FY25 figures, the company is valued at a P/E of ~23x with a Net Profit Margin (NPM) of around 6%.
In comparison:
1. Venus Pipes offers higher NPM (~10%) and a stronger debt profile, yet trades at a P/E of ~30x.
2. Ratnamani Metals & Tubes Ltd delivers superior margins (~10%) and maintains low debt, with a valuation of ~37x P/E.
Additionally, based on the company’s working capital requirements, the projected revenue for:
1. FY26 is expected at ₹525 Cr
2. FY27 is expected to reach ₹680 Cr
These estimates suggest significant top-line growth aligned with the company’s scale-up in operations and capital deployment.
The sharp improvement in gross margins between Fiscal 2022 and Fiscal 2024 can primarily be attributed to cost efficiencies achieved through economies of scale and the successful implementation of a backward integration strategy.
A notable transformation was also observed in the revenue composition during FY2024 compared to the preceding years:
1. Seamless products contributed 78.35% of the total revenue in FY2024, down from 92.86% in FY2023 and 87.58% in FY2022.
2. Welded products made up only 0.39% in FY2024, compared to 2.31% in FY2023 and 6.47% in FY2022.
3. The “Others” category, which includes the sale of mother hollow and scrap, saw a sharp rise, contributing 20.59% of the revenue in FY2024, up from 4.37% in FY2023 and 5.94% in FY2022.
The significant increase in the “Others” segment is directly linked to the company’s backward integration efforts, specifically the commissioning of a hot piercing mill in May 2022. This facility enables the in-house production of mother hollow, a critical raw material for seamless pipe manufacturing. While the primary intent was captive consumption, the company began selling surplus mother hollow in FY2024. This commercial sale of excess capacity played a major role in boosting the revenue contribution of the “Others” category, thereby supporting improved margins.
In summary, the dual impact of internal cost optimization and revenue diversification through backward integration has been central to the company’s enhanced profitability in FY2024.
Scoda Tubes….
Gross Margin has increased from just 17% in Fy22 to 34% in Fy24…
Realisation per kg increased from INR 446 per Kg. to 562 per Kg.
Huge improvement.