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Sambhv Steel Unlisted Shares

Company Presentation

Presentation Summary

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.

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FAQ's

What are unlisted shares?

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Unlisted shares are stocks of companies that are not listed on any stock exchange, meaning they are not publicly traded. These shares are typically available for trade in the private market through brokers, and can offer unique investment opportunities.

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The share prices of unlisted companies can fluctuate based on various factors like market demand, company performance, and private transactions. You can check the latest share prices for unlisted companies on our website for real-time updates.

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Unlisted shares can offer higher growth potential, as they are typically not subject to the same market volatility as listed shares. However, they come with higher risk due to limited liquidity and availability of information. It's important to research thoroughly and consult experts before investing.

How can I sell unlisted shares?

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To sell unlisted shares, you can connect with a broker or platform that facilitates the sale of private stocks. We help investors buy and sell unlisted shares with ease, ensuring that your transaction is handled professionally and securely.

What are the risks of investing in unlisted shares?

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Yes, unlisted shares can eventually be listed on a stock exchange through an Initial Public Offering (IPO). This process allows the company to offer its shares publicly and be traded on major exchanges, potentially increasing liquidity and visibility.

What is the share price of unlisted companies?

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Gains from unlisted shares are subject to capital gains tax in India. Short-term capital gains (if held for less than 24 months) are taxed at your applicable income tax rate, while long-term capital gains (if held for more than 24 months) are taxed at 20% with indexation benefits. Always consult a tax advisor for precise tax implications.

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It's important to conduct thorough research on the company's financials, management, market potential, and overall business model. You can also seek professional advice from experts to help you choose unlisted shares with strong growth prospects.

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Gains from unlisted shares are subject to capital gains tax in India. Short-term capital gains (if held for less than 24 months) are taxed at your applicable income tax rate, while long-term capital gains (if held for more than 24 months) are taxed at 20% with indexation benefits. Always consult a tax advisor for precise tax implications.

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