Scoda Tubes Shares Jump 4.6% amid Expansion Plans

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The stainless-steel tube maker’s stock closed at ₹162 after outlining major capacity expansion, robust earnings growth, and rising export potential.

By S JHA

Mumbai, October 27, 2025 — Shares of Scoda Tubes Ltd surged 4.6% on Monday to close at ₹162, buoyed by investor confidence in the company’s expansion plans and improving financial outlook.

The Gujarat-based stainless-steel tube and pipe manufacturer produces seamless and welded products used across industries including oil and gas, chemicals, fertilizers, power, pharmaceuticals, automotive, and railways. Scoda operates a hot piercing mill to produce “mother hollows,” a key raw material for seamless tubes.

Currently, the company’s Mehsana facility per company disclosure in its IPO document has a production capacity of 10,068 MTPA of seamless products, 1,020 MTPA of welded products, and 20,000 MTPA of mother hollows. Roughly 75% of revenues come from domestic markets, while exports account for 25%. Seamless products contribute about 85% of total revenue.

In October 2024, Scoda raised ₹55 crore in a pre-IPO round from Malabar India and Carnelian Bharat Amritkaal Fund (Vikas Khemani). The funds were earmarked for capacity expansion, with revenues from new seamless operations expected in the second half of FY26.

Financially, Scoda’s revenue growth and margin expansion have strengthened its balance sheet, though the company carries around ₹200 crore in debt, largely due to working capital needs. Its FY25 PAT is projected to show strong growth, with cash flows remaining steady, claimed analysts.

At current valuations, Scoda trades at a FY24 PE of 45.8x, FY25E PE of 25x, and FY26E PE between 16x and 18x—levels comparable to peers like Ratnamani Metals, Venus Pipes, Welspun Speciality, and Suraj. Analysts estimate an upside potential of 40–50% if Scoda’s performance aligns with its capex-driven growth.

The company had said ahead of IPO to deploy ₹77 crore of its ₹220 crore IPO proceeds toward doubling seamless production capacity and increasing welded capacity 13-fold to 12,130 MTPA by FY26-end.

While customer concentration risk remains—its top three clients contribute 37% of total revenue—investors are encouraged by strong promoter credibility, a healthy anchor book, and steady demand across sectors, claimed analysts.

(Disclaimer: This article makes no recommendation for buy or sell of shares of any company)