Scoda Tubes IPO Review

Scoda Tubes is a stainless-steel tubes and pipes manufacturer based in India having over 14 years of experience. Their 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 (“Products” or “Stainless Steel Products”).

The promoters and senior management team is well experienced in this industry both from marketing and distribution of products in this sector. The Promoters, Samarth Patel, Jagrutkumar Patel, Ravi Patel, Saurabh Patel, Vipulkumar Patel have an average experience of approximately 08 years in stainless steel seamless and welded tubes and pipes industry in addition to expertise across marketing, procurement, finance, accounting and customer relationship management.

The Revenues from operations for the period ended on Dec 31, 2024, Fiscals ended 2024, 2023 and 2022 were ₹ 3,634.80 Million, ₹ 4,024.88 Million, ₹ 3,077.85 Million and ₹ 1,950.53 Million respectively. The EBITDA for the period ended on Dec 31, 2024, Fiscals ended 2024, 2023 and 2022 were ₹ 629.37 Million, ₹ 614.18 Million, ₹ 374.41 Million, and ₹ 110.14 Million, respectively. The Profit after Tax for the period ended on Dec 31, 2024, Fiscals ended 2024, 2023 and 2022 were ₹ 249.14 Million, ₹ 183.00 Million, ₹ 103.36 Million, and ₹ 16.36 Million respectively. This indicates a steady growth in financial performance.

The Company Key Performance Indicates the pre-issue EPS of ₹ 4.6 and post-issue EPS of ₹ 3.05 for FY24. The pre-issue P/E ratio is 30.43x, while the post-issue P/E ratio is 45.83x against the Industry P/E ratio is 31x. The company's ROCE for FY24 is 15.92%, ROE for FY24 is 28.77% and RoNW is 28.77%. The Annualised EPS based on the latest financial data is ₹ 8.10 and PE ratio is 17.26x. These metrics suggest that the IPO is fairly priced.

The Grey Market Premium (GMP) of Scoda Tubes showing listing gains of 10.71 %. Given the company's financial performance and the valuation of the IPO, we recommend  Risky  Investors to Apply to the Scoda Tubes Limited IPO for Listing gain.

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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.