Scoda Tubes is providing between 1.57 crore and 1.69 crore shares and shall be listed on each the NSE and BSE. Retail traders can bid for no less than one lot consisting of 100 shares, amounting to Rs 14,000 on the higher band. The allotment is anticipated to be finalized by June 2, and the inventory is more likely to debut on the exchanges on June 4.
Scoda Tubes IPO: Do you have to subscribe?
Brokerage agency Canara Financial institution Securities has advisable a “SUBSCRIBE” score for long-term traders. It famous that the corporate’s technical experience, rising export share, asset-backed growth, and sector tailwinds place it nicely for scalable progress. Whereas the IPO is priced at a P/E of 30.43x and a P/B of 8.76x — broadly in keeping with business friends — traders needs to be aware of money stream considerations and buyer focus dangers.
In abstract, traders with a long-term view seeking to faucet into India’s industrial and export manufacturing story might think about subscribing to Scoda Tubes IPO.
IPO particulars
The corporate, integrated in 2008, makes a speciality of manufacturing stainless-steel seamless and welded tubes, that are provided to key sectors together with oil & fuel, chemical compounds, energy, railways, and prescription drugs.
It operates out of Mehsana, Gujarat, with backward integration via a scorching piercing mill, and has a rising export presence throughout 11 nations. Within the first 9 months of FY25, export income accounted for over 28% of whole income.
Financially, the corporate has proven strong progress. Income jumped from Rs 194 crore in FY22 to Rs 400 crore in FY24. Revenue after tax rose from Rs 1.63 crore in FY22 to Rs 18.3 crore in FY24. The corporate’s EBITDA margin improved from 5.15% in FY22 to 14.7% in FY24, and the return on fairness (RoE) stood at 28.77% for a similar interval.
Nevertheless, Scoda’s money stream effectivity has been a priority. Regardless of rising revenues and income, money generated from operations stood at simply Rs 2.26 crore in FY24.
Moreover, the corporate is closely reliant on choose stockists for each home and worldwide gross sales, which poses a focus danger. It additionally plans vital capability growth for welded pipes regardless of at the moment low utilization.
(Disclaimer: Suggestions, recommendations, views and opinions given by the consultants are their very own. These don’t characterize the views of Financial Occasions)
