Published 25th June 2024
Vraj Iron and Steel is a leading producer of iron and steel, manufacturing products such as sponge iron, MS Billets, and TMT bars. It was incorporated in 2004.
Total IPO size (Rs cr) 171 Offer for sale (Rs cr) 0 Fresh issue (Rs cr) 171 Price band (Rs) 195 - 207 Subscription dates June 26 - 28, 2024 Purpose of issue To increase the capacities of its existing manufacturing plants
682 Net worth (Rs cr) 359 Promoter holding (%) 75.1 Price-to-earnings ratio (P/E) 15.3 Price-to-book value (P/B) 1.9M-cap (Rs cr)
2Y CAGR (% pa) Nine months ending FY23 FY22 FY21 45261 Revenue (Rs cr) 33.2 301 516 414 291 EBIT (Rs cr) 84 57 73 42 22 PAT (Rs cr) 121.6 45 54 29 11 Net worth (Rs cr) 187 141 87 58 Total debt (Rs cr) 51 25 44 47Key financials
EBIT is earnings before interest and tax PAT is profit after tax
Ratios 3Y average (%) Nine months ending FY23 FY22 FY21 45261 ROE (%) 30.1 23.8 38.3 32.9 19 ROCE (%) 32.6 25.3 45 32.1 20.7 EBIT margin (%) 10.6 19 14.2 10.2 7.4 Debt-to-equity 0.27 0.17 0.51 0.82
ROE is return on equity ROCE is return on capital employed
The company has maintained double-digit profit margins since FY22, one of the highest in the industry, owing to low debt and efficient operations.
Its small scale and the industry’s stiff competition are among its many pitfalls. To read the complete risk report, head to our story from the link below.