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![selvaprathee Avatar](https://lunarcrush.com/gi/w:24/cr:twitter::2165141011.png) Investors Compass [@selvaprathee](/creator/twitter/selvaprathee) on x 11.5K followers
Created: 2025-07-13 18:54:30 UTC

Scoda Tubes Ltd – Stainless Steel, Seamless Growth Ahead ?
- Post IPO, this smallcap pipe player is doubling capacity, ramping exports, and expanding into high-demand welded segments.
- Let’s decode the transition with hard numbers, capex milestones, and margin shifts 

1⃣  From Pipes to Platform: Scoda’s Stack
Scoda isn’t chasing volume for volume’s sake.
▪️Seamless Capacity: XXXXXX TPA
▪️Welded Capacity: XXXXX TPA
▪️Mother Hollow: XXXXXX TPA (hot piercing mill since May 2022)
➡️ In FY25, 85%+ of revenue came from seamless tubes, not welded.

2⃣  Capex That Reflects Intent, Not Just Scale
Capex Outlay: ₹105 Cr (from IPO)
▪️₹55 Cr → Seamless Expansion
▪️₹45 Cr → Welded Pipe Expansion
▪️Timeline:
  Seamless ramp-up by Aug–Sep 2025 (H1 FY26)
  Welded pipes plant commercial by Q1 FY27
▪️Finished Goods Capacity → XXXXXX TPA → XXXXXX TPA
➡️ 3x total output by FY27, not for chasing tubes, but strategic pipes

3⃣  Financials Show Operating Leverage Already Working
▪️Revenue stood at ₹484.9 Cr in FY25  ⬆️ XX% YoY
▪️EBITDA came in at ₹78.1 Cr  ⬆️ XX% YoY
▪️PAT surged to ₹31.7 Cr  ⬆️ XX% YoY
▪️EBITDA Margin: XXXX% (+139 bps YoY)
▪️PAT Margin: XXX% (+197 bps YoY)
▪️Return ratios remain robust:
 ◦ ROE: XXXX%
 ◦ ROCE: XXXX%
 ◦ Debt/Equity: 1.40×
➡️ Revenue is growing, but margin & PAT surge show operating leverage kicking in with scale.

4⃣  Q4 Margin Dip – Explained, Not Alarming
▪️Margin dip was due to higher mother hollow sales, which are lower-margin products
▪️Management clarified: From FY26, all mother hollows will be used in-house
🗣️ “The decline in gross margins was due to a higher proportion of mother hollow sales in Q4.”
🗣️ “Next year, these will be XXX% captive.”
➡️ Temporary product mix impact, not a structural issue. Margins expected to normalise.

5⃣  Welded Tubes ⛔ → Welded Pipes ✅
- Scoda is reshaping its welded product strategy.
▪️Current capacity: Welded tubes, demand declining
▪️New capex targets: Welded pipes, broader infra & commercial use
▪️Margin Profiles:
  ◦ Seamless: 16-18% EBITDA
  ◦ Welded Pipes: 12-13% EBITDA
  ◦ Blended: ~15-16% post-expansion
➡️ Management is pivoting into higher-growth, higher-margin product lines.

6⃣  Exports: Europe Now, US Next
- FY25 Export Share: XX%
▪️Europe: XX% | Americas: X%
▪️Export footprint: XX countries
▪️Active stockists: XX (including exclusive partners in US & Europe)
▪️Europe office setup underway
🗣️ “We are setting up offices in Europe to manage logistics and customer interface locally.”
➡️ Scoda is evolving from an exporter to a globally-embedded supplier.

7⃣  Industry Tailwinds Support the Growth Thesis
▪️Global anti-China sentiment continues
▪️EU/US anti-dumping duties on Chinese steel remain in effect
▪️Domestic capacity still below global demand
▪️Industry growth for SS pipes & tubes: 6–8% CAGR (FY24–29)
▪️Management target: 15–20% volume CAGR
🗣️ “We aim to grow 2.5–3x the industry rate in volumes.”
➡️ Scoda is positioned to outgrow the sector, not just ride it.

8⃣  Where the Next Leg of Growth Will Come From
Targeting approvals in new sectors:
▪️Marine
▪️Power
▪️Green Energy
▪️Defence
➡️ These sectors are not included in base growth guidance  but offer future upside.

9⃣  Key Risks as Per Management
▪️No volume disclosure (competitive reasons)
▪️Q4 margins impacted by mother hollow mix (temporary)
▪️Revenue concentration:
  ◦ Top X Customers: XX%
  ◦ Top 10: XX%
▪️Debt/Equity: 1.40×
▪️No immediate plan to reduce finance costs
➡️ Execution + diversification are the key risks to monitor

🧭 Investor Compass Verdict – Pipes with Purpose
- Scoda isn’t a vanilla pipe manufacturer anymore. 
- It’s transforming into a:
▪️Backward-integrated stainless player
▪️Export-anchored margin story
▪️Capex-backed volume compounder
▪️Strategically positioned for PSU infra and global sourcing shifts
- If they execute, it compounds. If they delay, it de-rates.
- High risk. High conviction.

No Buy/Sell recommendation
#StocksInFocus #StocksToWatch #scodatubes #Scoda

![](https://pbs.twimg.com/media/GvwlZKxaAAAefkK.png)

XXXXXX engagements

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**Related Topics**
[ipo](/topic/ipo)
[stainless steel](/topic/stainless-steel)

[Post Link](https://x.com/selvaprathee/status/1944470508977991891)