Subscribe for Scoda Tubes Ltd IPO; Anand Rathi

Anand Rathi, has come out with its report on Scoda Tubes Ltd. The research firm has recommended to “ Subscribe” the ipo in its research report as on May 27, 2025.

Broker Research

May 28, 2025 / 12:19 IST

IPO

Anand Rathi, Scoda Tubes Ltd

Incorporated in 2008, Scoda tubes Ltd. based in Ahmedabad, engages in manufacturing stainless-steel tubes and pipes. Its products are broadly categorized 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 Company markets its products under its own brand and serves a wide range of industries, including Oil & Gas, Chemicals, Fertilizers, Power, Pharmaceuticals, Automotive, Railways, and Transportation, primarily through engineering, EPC, and industrial companies. The company operates a hot piercing mill with an annual capacity of 20,000 MT to manufacture mother hollow its key input for stainless steel seamless tubes. This in-house production capability supports backward integration, enabling better cost control and reduced dependence on external suppliers.

Valuation and Outlook

We believe that company’s key differentiator is its manufacturing process of its crucial raw material which enables backward integration, enabling Scoda Tubes to exercise greater control over production costs, reduce dependence on third-party suppliers, and improve overall operational efficiency. As the issue is fully priced we give “Subscribe for long term” rating for the issue.

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