Subscribe Vraj Iron and Steel Ltd; KR Choksey

KR Choksey, has come out with its report on Vraj Iron and Steel Ltd. The research firm has recommended to “ Subscribe ” the ipo in its research report as on Jun 27 2024.

Broker Research

June 27, 2024 / 15:06 IST

IPO

KR Choksey, IPO report on Vraj Iron and Steel Ltd

Vraj Iron and Steel Limited specializes in the production of Sponge Iron, M.S. Billets, and TMT bars under the Vraj brand. The company operates two manufacturing facilities spanning 52.93 acres in Raipur and Bilaspur, Chhattisgarh. As of December 31, 2023, the combined installed capacity of these plants amounts to 231,600 tons per annum, encompassing both intermediate and final products. The company's product lineup includes Sponge Iron, TMT Bars, MS Billets, and ancillary products like Dolochar, Pellets, and Pig Iron. These offerings cater to a diverse clientele comprising industrial customers and end-users. Vraj Iron and Steel distributes its products directly and through a network of brokers and dealers.

Valuation and Outlook

Moreover, Vraj's plan to utilize IPO proceeds to reduce debt is expected to strengthen its balance sheet, and improve net profitability by reducing interest costs in addition to improving operational efficiency. These expansions and debt reduction strategies are anticipated to drive profitability further through economies of scale and enhanced cost efficiencies. In light of this, we assign a SUBSCRIBE rating since the company is attractively valued at a P/E of 12.6x on FY23 Adjusted EPS.

For all IPO report, click here