Scoda Tubes Limited

Basic Materials — Steel · NSE

₹119.00+₹0.41 (+0.35%)

DalalBaazaar Score

61 / 100

🟢 Good

Verdict

NEUTRAL

Risk

High

Driven by negative free cash flow, micro-cap size, which brings thin liquidity, falling profits.

In simple words: Strong business and financial position, though profits are falling even as sales grow. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:47 pm

Understanding the Business

Company site ↗

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

What does this company do?

Scoda Tubes Limited manufactures and sells stainless steel pipes and tubes in India and internationally.

IndustrySteel

SectorBasic Materials

Employees161

Annual revenue₹519 Cr

How does it make money?

Turns over ₹519 Cr a year. Of every ₹100 of sales, about ₹7 reaches shareholders as profit, with ₹17 left at the operating level before interest, tax and depreciation. Each of its 161 employees supports ₹3.22 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹3.22 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.

Compared side by side in Peers ↓

What is its competitive advantage?Some evidence

ROCE of 17.1% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

Peer median ROE10.8%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +70% while net margin moved +121% 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+70%

Margin effect+121%

DalalBaazaar Score

61/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

63/ 100

Average

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

Valuation

71/ 100

Cheap

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

19.1x

2Y Median

27.6x

18 monthly readings · mean 29.9x · range 17.5x–65.4x

Sector Median

18.2x

median of 4 sector peers

🟢Current valuation is approximately 31% below its 2y median of 27.6x. 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 is priced broadly in line with the peer median of 18.2x.

vs. its own history

Cheap

27.6x median over 18 months · -31%

vs. sector peers

Fair

18.2x median of 4 peers · +5%

vs. generic bands

Fair

15x–35x

EV/EBITDA

10.4x

PEG

0.34

What's Good / What's Bad

🟢 What's Going Well2

Margins are improving
EBITDA margin is up from 12.2% to 16.5% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 22.8% to 10.0% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 28.1% to 17.1% — often a sign of competition or overexpansion.

Red Flags

5 items require attention · 3 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.
🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🔴Receivables growing faster than salesFinancial
Receivables up 168% against revenue up 70% — sales are being booked faster than they are collected.
🟡Debt is increasingFinancial
Total debt is up 34% over 3 years.
🟡Inventory building faster than salesFinancial
Inventory up 111% against revenue up 70% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 12.2% to 16.5%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 31% 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 168% against revenue up 70%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Returns on shareholder capital are falling
ROE has dropped from 22.8% to 10.0%. 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.
Size brings its own risk
Micro 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.
Several serious flags at once
3 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

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

1Revenue growth stays above 15% a year✓ 19.3% CAGR
Latest reported year was 27.6%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 15%✓ 16.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA stays below 2x✗ 2.2x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4Free cash flow remains positive✗ -₹130 Cr
Profit that never becomes cash eventually stops being profit.
5Interest cover stays above 3x✓ 3.4x
How much operating profit can fall before interest stops being comfortably covered.

Investment Checklist

6 / 11 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
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

4 good · 5 neutral · 2 weak

Market Cap

₹713 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

19.1x

Fair

Fairly valued against the generic band

P/B Ratio

1.89x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹6.23

Profitable

Profitable on a per-share basis

ROE

10.0%

Moderate

Moderate capital efficiency

ROCE

17.1%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.48x

Low

Conservative leverage

Revenue Growth (YoY)

27.6%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-38.9%

Falling

Profits are shrinking

Dividend Yield

None

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

Free Cash Flow

-₹130 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

9.5%

Average

Average margins

Net Margin

6.8%

Average

Average bottom-line conversion

Current Ratio

1.78

Comfortable

Healthy short-term liquidity

52W Range Position

13%

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

125.8 / 129.1

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

23.4

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹305 Cr	₹400 Cr	₹485 Cr	₹519 Cr	+19.3%
EBITDA	₹37 Cr	₹60 Cr	₹80 Cr	₹86 Cr	+32.2%
EBITDA Margin	12.2%	15.1%	16.6%	16.5%	—
PAT (Net Profit)	₹10 Cr	₹18 Cr	₹32 Cr	₹39 Cr	+55.5%
EPS	₹1.73	₹3.05	₹5.3	₹6.79	+57.9%
ROE	22.8%	28.8%	21.1%	10.0%	—
ROCE	28.1%	35.8%	30.7%	17.1%	—
Total Debt	₹140 Cr	₹203 Cr	₹211 Cr	₹187 Cr	+10.3%
Free Cash Flow	-₹8 Cr	-₹34 Cr	-₹22 Cr	-₹130 Cr	—

🟢 Revenue has grown at 19.3% a year over 3 years.

🟢 EBITDA has grown at 32.2% a year over 3 years.

🟢 EBITDA Margin has risen from 12.2% to 16.5% over 3 years (+4.4 pts).

🟢 PAT (Net Profit) has grown at 55.5% a year over 3 years.

🟢 EPS has grown at 57.9% a year over 3 years.

🔴 ROE has fallen from 22.8% to 10.0% over 3 years (-12.9 pts).

🔴 ROCE has fallen from 28.1% to 17.1% over 3 years (-11.0 pts).

🔴 Total Debt has grown at 10.3% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹688 Cr

Total Liabilities

₹298 Cr

Cash & Equivalents

₹4 Cr

Operating Cash Flow

-₹14 Cr

Capex

-₹116 Cr

Shareholding (proxy)

Institutional Holding

11.0%

Insider Holding

67.8%

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

3 mixed3 general

SCODA TUBES Share Price rises 11.33%: stock analysis

Univest, 23 SeptPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Not Many Are Piling Into Scoda Tubes Limited (NSE:SCODATUBES) Stock Yet As It Plummets 28%

Simply Wall Street, 03 Feb

SCODA TUBES LIMITED Share Price - Live NSE: SCODATUBES Stock Price & Chart

Upstox, 05 May

Scoda Tubes reports flat ₹124 Crore Q4 revenue as EBITDA margins slip 63 bps

Sahi, 26 MayResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Scoda Tubes shareholders approve all 14 resolutions at FY26 AGM

scanx.trade, 29 Sept

Scoda Tubes Share Price Target 2027, 2028 and 2030: Long Term Analyst Forecast

Univest, 11 AugAnalyst view

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

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

StrongFinancial Health · Growth · Valuation

MiddlingBusiness Quality

WeakProfitability · Risk

Points for each in the Score ↑

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. 3 high-severity red flags sit above this conclusion and should be read first.

2 of 5 tripwires tripped — Debt / EBITDA stays below 2x; Free cash flow remains positive · see Key things to watch ↑