PS Raj Steels IPO Review

PSSR Group is one of India’s most trusted names in the Stainless Steel Pipes & Tubes Industry. The Group was established in the year 1996 and P S Raj Steels Limited (Formerly Known As P S Raj Steels Private Limited) in Corporated in the year 2004 with a vision to manufacture and provide Stainless Steel Tubular solutions to the industry.

The Promoters, Mr. Raj Kumar Gupta, Mr. Deepak Kumar, Mr. Vishal Gupta and Mr. Gaurav Gupta are qualified professionals with an individual cumulative experience of more than 5 decades in the Steel Pipes & Tubes industry and have been instrumental in driving the growth since inception of the business.

The Revenues from operations for the period ended on Sep 30, 2024, Fiscals ended 2024, 2023 and 2022 were ₹ 13,911.59 Lakh, ₹ 29,776.39 Lakh, ₹ 22,544.28 Lakh and ₹ 17,989.39 Lakh respectively. The EBITDA for the period ended on Sep 30, 2024, Fiscals ended 2024, 2023 and 2022 were ₹ 635.67 Lakh, ₹ 1,081.56 Lakh, ₹ 696.36 Lakh, and ₹ 688.30 Lakh, respectively. The Profit after Tax for the period ended on Sep 30, 2024, Fiscals ended 2024, 2023 and 2022 were ₹ 386.62 Lakh, ₹ 636.29 Lakh, ₹ 365.19 Lakh, and ₹ 357.08 Lakh respectively. This indicates a steady growth in financial performance.

The Company Key Performance Indicates the pre-issue EPS of ₹ 11.53 and post-issue EPS of ₹ 8.444 for FY24. The pre-issue P/E ratio is 12.14x, while the post-issue P/E ratio is 16.59x against the Industry P/E ratio is 49x. The company's ROCE for FY24 is 20.64%, ROE for FY24 is 20.79% and RoNW 20.79%. The Annualised EPS based on the latest financial data is ₹ 14.02 and PE ratio is 9.98x. These metrics suggest that the IPO is fairly priced.

The Grey Market Premium (GMP) of PS Raj Steels showing listing gains of 0.00 %. Given the company's financial performance and the valuation of the IPO, we recommend Investors to Avoid to the PS Raj Steels Limited IPO for Listing gain.

Disclaimer: The information provided in this IPO review is for educational and informational purposes only and should not be construed as financial advice or an offer to buy or sell securities. The review must not be used as a singular basis of any investment decision. The views herein are of a general nature and do not consider the risk appetite or the particular circumstances of an individual investor; readers are requested to take professional advice before investing. Nothing in this document should be construed as investment advice. The content is based on publicly available information and market perceptions as of the date of publication and is subject to change. Neither the author nor the website is responsible for any losses or damages arising from the use of this information. 

About the Author
 CA Abhay Kumar (Also known as  CA Abhay Varn) is a qualified Chartered Accountant by profession and cleared CA at age 21. He is a SEBI Registered Research Analyst with Registration Number - INH300008465. He Possesses 8+ years of experience in the Stock Market Field and has also worked in Big CA firms during the training period. He is good at Technical analysis and Fundamental Analysis and uses both Technical and Fundamental analysis along with five other important factors that affect the movement of the Market namely Global Market Analysis, Upcoming Event Analysis, Institutional Money Analysis, Derivative Data Analysis, and Emotions and Sentiment of Traders and Investors in his Framework called - Technical Fundamental GUIDE to find the winning Trades.