Sambhv Steel Tubes Limited

Basic Materials — Steel · NSE

₹173.34+₹10.19 (+6.25%)

DalalBaazaar Score

57 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Moderate

Driven by negative free cash flow, small-cap size, which brings sharper price swings.

In simple words: Strong business and financial position, with both sales and profits growing well. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:08 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

The 60-second version of Sambhv Steel Tubes Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Sambhv Steel Tubes Limited manufactures and sells electrical resistance welded steel pipes, structural tubes, and stainless-steel coils in India.

IndustrySteel

SectorBasic Materials

Employees2,303

Annual revenue₹2,411 Cr

How does it make money?

Turns over ₹2,411 Cr a year. Of every ₹100 of sales, about ₹6 reaches shareholders as profit, with ₹12 left at the operating level before interest, tax and depreciation. Each of its 2,303 employees supports ₹1.05 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin11.7%

Net margin5.9%

Revenue / employee₹1.05 Cr

Who are its competitors?

The closest listed comparisons in its industry are TATA STEEL LIMITED, JSW STEEL LIMITED, JINDAL STEEL LIMITED, STEEL AUTHORITY OF INDIA. These are the companies its valuation and returns are measured against elsewhere in this report.

TATA STEEL LIMITEDP/E 19.8x · ROE 10.8%

JSW STEEL LIMITEDP/E 12.0x · ROE 24.7%

JINDAL STEEL LIMITEDP/E 39.1x · ROE 5.3%

STEEL AUTHORITY OF INDIAP/E 16.5x · ROE 7.1%

What is its competitive advantage?Some evidence

ROCE of 17.4% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

ROCE17.4%

ROE13.5%

Peer median ROE10.8%

What is the outlook?

1 analysts covering the stock expect revenue to grow about 66.1% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+66.1%

Analysts1

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +158% while net margin moved -9% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+158%

Margin effect-9%

DalalBaazaar Score

57/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Small Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast
✗ Trading within 10% of its 52-week high — entries here carry more pullback risk
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

58/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

59/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

30.5x

1.4Y Median

51.4x

17 monthly readings · mean 48.7x · range 25.3x–62.0x

Sector Median

18.2x

median of 4 sector peers

🟢Current valuation is approximately 41% below its 1.4y median of 51.4x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

⚠️Against its sector it trades 68% above the peer median of 18.2x.

vs. its own history

Cheap

51.4x median over 17 months · -41%

vs. sector peers

Expensive

18.2x median of 4 peers · +68%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

30.5x

P/B

4.85x

EV/EBITDA

19.3x

PEG

0.92

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well2

Valuation below its historical average
At 30.5x the stock trades 41% below its own median of 51.4x.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention6

Debt is rising
Total debt is up 31% over 3 years — worth checking what it funded.
Free cash flow is negative
The business is not currently covering its capital spending from operations.
Return on equity is falling
ROE has dropped from 28.7% to 13.5% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 25.8% to 17.4% — often a sign of competition or overexpansion.
Receivables growing faster than sales
Receivables are up 544% against revenue growth of 158% — customers are taking longer to pay.
Inventory building faster than sales
Inventory is up 213% against revenue growth of 158% — stock may not be moving.

Red Flags

4 items require attention · 2 high · 2 watch

🔴Free cash flow negative for 4 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴Receivables growing faster than salesFinancial
Receivables up 544% against revenue up 158% — sales are being booked faster than they are collected.
🟡Debt is increasingFinancial
Total debt is up 31% over 3 years.
🟡Inventory building faster than salesFinancial
Inventory up 213% against revenue up 158% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 41% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Sales are being booked faster than collected
Receivables are up 544% against revenue up 158%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
A premium to the sector to defend
It trades 68% above the peer median. That premium needs a reason that persists, or it closes.
Returns on shareholder capital are falling
ROE has dropped from 28.7% to 13.5%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Small Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 28% a year✓ 37.1% CAGR
Latest reported year was 31.1%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 10%✓ 11.7%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹75 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.3x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 14%✓ 17.4%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

8 / 12 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✗ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

5 good · 5 neutral · 1 weak

Market Cap

₹5,108 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

30.5x

Fair

Fairly valued against the generic band

P/B Ratio

4.85x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹5.68

Profitable

Profitable on a per-share basis

ROE

13.5%

Moderate

Moderate capital efficiency

ROCE

17.4%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.35x

Low

Conservative leverage

Revenue Growth (YoY)

31.1%

Healthy

Healthy top-line growth

Profit Growth (YoY)

36.2%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹75 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹173.34

Operating Margin

11.3%

Average

Average margins

Net Margin

6.4%

Average

Average bottom-line conversion

Current Ratio

1.30

Comfortable

Healthy short-term liquidity

52W Range Position

98%

Near high

Near its 52-week high

Technical Snapshot

SMA 20 / SMA 50

159.7 / 139.5

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

64.2

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹936 Cr	₹1,282 Cr	₹1,508 Cr	₹2,411 Cr	+37.1%
EBITDA	₹119 Cr	₹162 Cr	₹158 Cr	₹281 Cr	+33.3%
EBITDA Margin	12.7%	12.7%	10.5%	11.7%	—
PAT (Net Profit)	₹60 Cr	₹82 Cr	₹57 Cr	₹142 Cr	+33.0%
EPS	₹2.05	₹2.8	₹1.94	₹5.05	+35.1%
ROE	28.7%	18.8%	11.6%	13.5%	—
ROCE	25.8%	21.9%	14.4%	17.4%	—
Total Debt	₹285 Cr	₹351 Cr	₹507 Cr	₹373 Cr	+9.4%
Free Cash Flow	-₹22 Cr	-₹143 Cr	-₹101 Cr	-₹75 Cr	—

🟢 Revenue has grown at 37.1% a year over 3 years.

🟢 EBITDA has grown at 33.3% a year over 3 years.

🔴 EBITDA Margin has fallen from 12.7% to 11.7% over 3 years (-1.0 pts).

🟢 PAT (Net Profit) has grown at 33.0% a year over 3 years.

🟢 EPS has grown at 35.1% a year over 3 years.

🔴 ROE has fallen from 28.7% to 13.5% over 3 years (-15.2 pts).

🔴 ROCE has fallen from 25.8% to 17.4% over 3 years (-8.4 pts).

🔴 Total Debt has grown at 9.4% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹2,066 Cr

Total Liabilities

₹1,012 Cr

Total Debt

₹373 Cr

Cash & Equivalents

₹62 Cr

Operating Cash Flow

₹212 Cr

Capex

-₹287 Cr

Shareholding (proxy)

Institutional Holding

2.2%

Insider Holding

68.6%

Analyst Consensus

Recommendations

1 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹210

+21.1% vs CMP

Target Range

₹210 – ₹210

Peer Comparison

Company	P/E	ROE
TATA STEEL LIMITED	19.8x	10.8%
JSW STEEL LIMITED	12.0x	24.7%
JINDAL STEEL LIMITED	39.1x	5.3%
STEEL AUTHORITY OF INDIA	16.5x	7.1%

Recent News

2 mixed4 general

Sambhv Steel Tubes Raises ₹24.99 Crore Via 8,695,400 Equity Warrants At ₹115 Each

Sahi, 17 OctFunding

🟡Mixed / dependsNew funding changes the capital structure. Debt raises leverage; an equity raise dilutes existing holders.

SAMBHV Stock Price and Chart — NSE:SAMBHV

TradingView, 20 Aug

Sambhv Steel Tubes (NSE:SAMBHV): Why Did It Allot 86.95 Lakh Warrants on Preferential Basis?

Kalkine India, 17 Oct

Here's Why Sambhv Steel Tubes (NSE:SAMBHV) Has Caught The Eye Of Investors

Simply Wall Street, 21 Aug

Compare with

Equitymaster, 16 Oct

Sambhv Steel Tubes Limited: Target Price Consensus and Analysts Recommendations | SAMBHV | INE12NJ01018

www.marketscreener.com, 14 OctAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Watch Items

Trading very close to its 52-week high — momentum-driven entries here carry more mean-reversion risk.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

🔴Business QualityWeak8.8/20

🟢Financial HealthStrong13.2/20

🟢GrowthStrong14.9/20

🟡ProfitabilityModerate7.1/15

🟡ValuationFair9.5/15

🔴RiskHigh3.5/10

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 2 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 28% a year37.1% CAGR
✓EBITDA margin holds above 10%11.7%
✗Free cash flow remains positive-₹75 Cr
✓Debt / EBITDA stays below 2x1.3x
✓ROCE stays above 14%17.4%