Scoda Tubes IPO Review * by Paresh Gordhandas, CA & Research Analyst.
Scoda Tubes Limited, a trusted name in precision stainless steel tube and pipe manufacturing, has carved a niche for itself over the past 14 years. Headquartered in India, the company specializes in a broad spectrum of stainless steel products, classified into two main categories—seamless and welded tubes/pipes—offered across five distinctive product lines:
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Stainless steel seamless pipes
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Stainless steel seamless tubes
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Stainless steel seamless “U” tubes
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Stainless steel instrumentation tubes
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Stainless steel welded tubes and “U” tubes
These products, proudly marketed under the “Scoda Tubes Limited” brand, serve a wide array of sectors including Oil & Gas, Chemicals, Fertilizers, Power, Pharmaceuticals, Automotive, Railways, and Transportation. Scoda is not just a manufacturer but an enabler of industrial progress.
Strategic Infrastructure & Global Reach
At the heart of Scoda’s operations is its advanced manufacturing facility located on the Ahmedabad-Mehsana Highway in Gujarat—just 200 km from Mundra Port and a mere 23 km from an Inland Container Depot. This strategic location ensures excellent connectivity for exports while optimizing logistics costs.
The company operates a dedicated hot piercing mill, producing mother hollows—key raw materials for its seamless products. As of August 31, 2024, Scoda’s manufacturing capacity stands at:
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20,000 MT/year for mother hollows
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10,068 MT/year for seamless products
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1,020 MT/year for welded products
The facility also includes storage units for raw materials and finished goods, enabling efficient inventory management.
Scoda Tubes caters to both domestic and international markets. Domestically, it serves stockists and industrial giants across major sectors. Internationally, its footprint spans 16 countries including the United States, Germany, Italy, Netherlands, France, and Spain—making it a truly global player.
Robust Financial Growth
Scoda’s financial trajectory speaks volumes about its operational efficiency and market demand. In FY 2023–24, the company’s total income surged to Rs. 399.81 crore, up from Rs. 305.13 crore in the previous year. Despite rising material costs and increased depreciation and interest expenses, Scoda’s bottom line improved, thanks to economies of scale. The growth trend continued through the first 9 months of FY 2024–25, highlighting sustained momentum.
Investment Opportunity
The IPO offers a compelling investment case:
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Valuation: Shares are attractively priced at a PE multiple of 30.40 (based on FY 2023–24 earnings), with potential for upside based on the strong 9-month FY 2024–25 performance.
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Issue Size: The total offer is Rs. 220 crore, with Rs. 33 crore allocated to HNIs and Rs. 77 crore to retail investors.
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High Demand Likely: Given the relatively small issue size and Scoda’s strong fundamentals, significant oversubscription is anticipated.
Verdict: Apply
With proven manufacturing expertise, expanding global reach, strong financials, and a well-priced offer, Scoda Tubes Limited presents a promising opportunity for investors seeking exposure to India’s industrial growth story. The time to invest is now—before the crowd catches on.
+ from fundamental angle: Apply
+ from grey market angle: Apply
Scoda Tubes IPO Review
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