This small-cap steel stock, engaged in manufacturing and supplying stainless steel seamless and welded tubes and pipes for industrial, engineering, and infrastructure applications, hit a 5 percent lower circuit after Foreign Institutional Investor (FII) offloaded 4.20 lakh shares.
With a market capitalization of Rs. 1,048.41 crores, the shares of Scoda Tubes Limited hit a 5 percent lower circuit of Rs. 171 per share on Monday, down from its previous closing price of Rs. 180 per share. Since then, the stock has retreated and is currently trading at Rs. 175 per equity share.
On 13th June 2025, Morgan Stanley Asia Singapore PTE, classified as a Foreign Institutional Investor (FII), sold 420,000 shares in a bulk deal at an average price of Rs. 181.42. The total value of this transaction is Rs. 7.62 crore.
Scoda Tubes Limited was established in 2008 and is an Indian manufacturer specializing in stainless steel seamless and welded tubes and pipes. The company serves sectors such as oil and gas, power, chemicals, and transportation with a product portfolio that includes seamless pipes, welded pipes, U-tubes, and instrumentation tubes
The company exports its products to 11 countries, such as the US, Germany, the Netherlands, Italy, and Spain.
Expansion Plans: The company intends to expand its seamless stainless-steel tube and pipe capacity from 10,068 TPA to 20,068 TPA, effectively doubling it, while also increasing its welded product capacity from 1,020 TPA to 13,150 TPA, an addition of 12,130 TPA. The estimated expansion cost of Rs. 105 crores.
IPO Details: Scoda Tubes Limited launched its SME IPO from May 28 to May 30, 2025, with the goal of raising approximately Rs. 220 crores. The IPO consisted entirely of a fresh issue of 1.57 crore equity shares at a fixed price of Rs. 140 per share. The shares were subsequently listed on the NSE SME platform on June 4, 2024.
Coming into financial highlights, Scoda Tubes Limited’s revenue has increased from Rs. 305 crore in FY23 to Rs. 400 crore in FY24, which has grown by 31.15 percent. The net profit has also grown by 80 percent, from Rs. 10 crore in FY23 to Rs. 18 crore in FY24.
Scoda Tubes Limited’s revenue and net profit have grown at a CAGR of 43.59 percent and 200 percent, respectively, over the last two years. In terms of return ratios, the company’s ROCE and ROE stand at 19.9 percent and 33.6 percent, respectively. Scoda Tubes Limited’s debt-to-equity ratio is 3.19x.
Written By – Nikhil Naik
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