Sambhv Steel Overview and Key Details:
**1. Business Overview:** Sambhv Steel is a leading Indian steel manufacturer, producing TMT bars, structural steel, and value-added steel components. It has integrated manufacturing facilities and caters to both domestic and international markets, serving sectors like infrastructure, construction, and industry. The company's product lines include TMT bars, billets, structural steel, and rebar. Its end-use sectors encompass infrastructure, construction, engineering, and manufacturing. Geographically, it has a strong presence in North and Central India with growing export markets.
**2. Investment Rationale:** The company is aligned with India's infrastructure growth push (e.g., NIP, PM Gati Shakti). It is undergoing capacity expansion via new manufacturing lines, increasing production capacity. The company has backward integration for raw material sourcing efficiencies, leading to better margins. Furthermore, it has a well-established brand presence in regional B2B and institutional segments.
**3. Key Risks:** Raw material volatility is a key risk as steel margins are sensitive to input cost swings (e.g., iron ore, coal). Cyclicality also poses a risk as the company is subject to economic cycles and infrastructure spending. There is also IPO uncertainty as the timeline for listing is not finalized, and investor liquidity remains limited pre-IPO.
**4. IPO Timeline & Exit Options:** The expected IPO is FY25-26 (tentative). Exit routes include private placements and secondary market via unlisted platforms.
**5. UnlistedZone View:** Sambhv Steel presents an attractive opportunity within India's expanding steel ecosystem. Robust operations, cost advantages, and increasing scale make it a strong pre-IPO candidate. However, investors should weigh commodity exposure and IPO timing risk.
Positive factors include a strong demand outlook, capex-backed growth, and reasonable entry valuation.
**Company Snapshot and Financials:**
* **Name:** Sambhv Steel Ltd.
* **CIN:** U27100DL1996PTC081301
* **Incorporated:** 2017
* **Headquarters:** Raipur, Chhattisgarh
* **Promoters:** Vikas Kumar Goyal, Ashish Goyal
* **Sector:** Steel Manufacturing
* **ISIN:** INE12NJ01018
* **Financials (In Cr.):**
* **Revenue:** FY21: 479, FY22: 819, FY23: 936, FY24: 1287
* **EBITDA:** FY21: 64, FY22: 120, FY23: 114, FY24: 158
* **PAT:** FY21: 34, FY22: 73, FY23: 62, FY24: 83
* **EPS:** FY21: 17, FY22: 36.5, FY23: 31, FY24: 3.44
*Note: FY24 figures are estimates based on available data.*
**Valuation Metrics:**
* **Last Deal Price:** ₹118/share (01 May 2025)
* **Implied Market Cap:** ₹2844 Cr.
* **P/E Ratio (FY24):** ~34.3x
* **Book Value:** 18.84
* **P/B Ratio:** ~6.26x
*Valuation metrics are based on available market data and may vary.*
**Shareholding Pattern:**
* **Directors and Relatives:** 58.83%
* **Promoters:** 21.46%
* **Others:** 13.75%
* **Private Corporate Bodies:** 5.96%
**6. Disclosures & Data Sources:** Sources: Company DRHP, UnlistedZone.
