Rajputana Stainless Ltd IPO Analysis
By Admin
|
Mar 10, 2026
|
1 min read
|
71
|
🤍
0
The company operates under a B2B model and supplies materials to industries including automotive, oil & gas, aerospace, forging, seamless pipe manufacturing and utensil manufacturing. Its primary manufacturing facility is located in Gujarat.
Rajputana Stainless also exports products to several international markets including the UAE, USA, Turkey, Kuwait and Poland. The company plans to expand operations through a stainless steel seamless pipe manufacturing facility funded partly through IPO proceeds.
Competitive Advantages
- Diverse stainless steel product portfolio
- Export presence across multiple countries
- Integrated manufacturing operations
- Established B2B distribution network
IPO Snapshot
| Company Name | Rajputana Stainless Limited |
|---|---|
| Sector | Steel / Stainless Steel Manufacturing |
| Founded | 1991 |
| Headquarters | Kalol, Gujarat, India |
| Issue Size | ₹255 Crore |
| Fresh Issue | ~1.46 Crore Shares |
| Offer for Sale | ~62.5 Lakh Shares |
| Market Cap after listing | Estimated ~₹900–1000 Cr |
| Promoter Holding | Promoter: Shankarlal Deepchand Mehta & others |
| Retail Quota | ~35% |
| QIB Quota | ~50% |
| NII Quota | ~15% |
Financial Performance
| Year | Revenue (₹ Cr) | EBITDA (₹ Cr) | Net Profit (₹ Cr) | EPS (₹) | Net Worth (₹ Cr) | Total Assets (₹ Cr) | Debt (₹ Cr) |
|---|---|---|---|---|---|---|---|
| FY22 | 766 | 30 | 9.3 | - | 57.7 | 281 | 91.8 |
| FY23 | 947 | 43.8 | 24.0 | - | 81.1 | 297 | 79.8 |
| FY24 | 909 | 59.4 | 31.0 | 4.59 | 112.2 | 324 | 79.7 |
| FY25 (Annualised) | 912 | 74.6 | 42.1 | - | 143.8 | 393 | 90.3 |
Revenue Trend: Revenue shows cyclical movement due to commodity price changes but remains around ₹900 Cr annually.
Profit Growth: Net profit improved significantly from ₹9 Cr (FY22) to ₹31+ Cr (FY24).
Margins: EBITDA margin improved to ~8%, indicating operational efficiency improvements.
Key Financial Ratios
| Metric | Value | Status |
|---|---|---|
| PE Ratio (IPO) | ~26–27x | Neutral |
| Industry PE | ~15x | Moderate |
| PB Ratio | ~5.8x | Expensive |
| ROE | ~21.9% | Strong |
| ROCE | ~24.9% | Strong |
| Debt / Equity | ~0.6 | Moderate |
| Operating Margin | ~8% | Average |
| Net Margin | ~4.6% | Thin |
Valuation Analysis
The IPO valuation appears moderate to slightly expensive relative to typical steel sector valuations. Steel companies usually trade at lower multiples due to cyclical demand and commodity price volatility.
| Company | Market Cap | PE | ROE | Revenue |
|---|---|---|---|---|
| Rajputana Stainless (IPO) | ~₹900–1000 Cr | ~26x | 21% | ₹900+ Cr |
| Jindal Stainless | ₹60,000+ Cr | ~22x | 20%+ | ₹38,000+ Cr |
| Shyam Metalics | ₹20,000+ Cr | ~18x | 18% | ₹12,000+ Cr |
Strengths
- Diversified stainless steel product portfolio
- Growing export footprint
- Strong ROE and ROCE metrics
- Expansion plan through new manufacturing facility
- Long operating history since 1991
Risks
- Steel industry is highly cyclical
- Revenue sensitive to commodity price fluctuations
- Moderate debt levels
- Thin net profit margins
- High competition from large steel manufacturers
IPO Subscription Data
| Category | Shares Offered | Shares Bid | Subscription |
|---|---|---|---|
| Retail | 35% | - | 0.04x (Day 1) |
| QIB | 50% | - | 0.49x (Day 1) |
| NII | 15% | - | - |
| Total | - | - | 0.21x |
Grey Market Premium
| IPO Price | GMP | Estimated Listing Price | Estimated Gain |
|---|---|---|---|
| ₹122 | ₹15 – ₹20 | ₹137 – ₹142 | 12% – 16% |
Objects of the Issue
| Purpose | Amount | Percentage |
|---|---|---|
| New Stainless Steel Pipe Manufacturing Facility | ₹183 Cr | Major Portion |
| Debt Repayment | ₹76+ Cr | Significant |
| Working Capital & Corporate Purposes | Remaining | - |
Final Summary
Rajputana Stainless Limited operates in the stainless steel manufacturing industry and offers a diversified product portfolio with over 80 steel grades. The company has demonstrated consistent revenue levels near ₹900 crore with improving profitability and strong return ratios.
While margins remain relatively thin due to the cyclical nature of the steel industry, the company’s operational efficiency and export presence contribute to a stable business profile. The IPO proceeds are intended to support expansion and debt reduction, which could strengthen the balance sheet.
Overall, the IPO represents a mid-sized steel manufacturing company with improving financial performance but operating in a competitive and cyclical sector.
Listing Probability Analysis
| Factor | Status |
|---|---|
| Grey Market Premium | Positive |
| Subscription Trend | Moderate |
| Sector Momentum | Neutral |
| Market Sentiment | Supportive |
Estimated Listing Probability
- High Listing Gain Probability: 30%
- Moderate Listing Gain Probability: 45%
- Low / Flat Listing Probability: 25%
Financial & Regulatory Disclaimer
InvesTalks provides stock market analysis, equity research, and financial content strictly for educational and informational purposes only. We are not a SEBI-registered investment advisor or portfolio manager. Market investments are subject to market risks. Always perform your own research or consult a certified SEBI-registered financial advisor before making buy/sell decisions.
Admin
Equity Research & Financial AnalysisCurated by the InvesTalks financial analysis team. Dedicated to providing disciplined stock market insights, technical chart evaluations, and long-term investor education.
Market News & Outlook
Login to comment.