The SARBHV Steel Tubes IPO: The Sambhv Steel Tubes’ IPO is a hazardous bet for investors?

The Intelligence Group plans: Steel steel tubes planning to raise ₹ 400 crore by fresh equity debt payment and ₹ 100 crore by an ons. The stake of the Promoter group will melt at 56% after listing from 71.9%. The back of its participation and different product applications provide a competition. However implementation remains critical. Investors who have a high hazardian hazard, and are comfortable with cyclical sectors and a medium- to long-term view can think of the IPO.

business

The SAMBHV has made power resistance welded (ERW) steel pipes and structural tubes, with an installed capacity of the industry, as the demand of the domestic steel is expected to grow 8-9% between FY25 and FY29, as per crisil report.

Finance
The company shows a steady growth of income, with income increase in ₹ 1,289.3 crore of FY24 from ₹ 820.7 crore in FY22. Net profits add to ₹ 82.4 crore to FY24 from ₹ 60.4 crore to FY23 even if it remains below 72 crore on FY22.

It plans to use the crore of fresh issu to reduce the lenders from ₹ 554.6 crore on April 30.8 in FY24 from FY22. Ebitda Margin refused 12.4% of FY24 from 15.2% of FY22. The return of equity has fallen by 25.4% from 63.7% while received days received in 37 days from 7 days in time.

Valuation
The initiative of decreasing the debt of the company is an additional, and the industry’s perspective is favorable. The IPO is valued in an income price (P / E) many 44.5 while peers traddered prices earnings between 10 and 68.