📉 CMP: ₹156.02 | Market Cap: ₹600 Cr | Listed: Feb 2024 | Sector: Steel Pipes & Tubes
🧠 At a Glance
Vibhor Steel Tubes Ltd (VSTL) just posted its Q4 FY25 results, and while most investors glanced at the 1.17% dip in stock price, they completely missed the real story:
➡️ Telangana plant capacity doubled
➡️ Crash barriers added to product mix
➡️ Exports growing
➡️ High-margin product shift underway
All this is happening quietly, with zero hype, just months after their IPO. The company made ₹996 crore in revenue this year — and is now betting big on volume + margin expansion for FY26.
🏭 About Vibhor Steel Tubes
- 📍 Headquartered: Hisar, Haryana
- 🛠️ Established: 2003
- 🔧 Product Range: ERW Pipes, Galvanized Pipes, Hollow Section, SS Pipes, Primer-Coated Pipes
- 🤝 Contract Manufacturing: Long-term partner with Jindal Pipes Ltd, supplies under Jindal Star brand
- 🧱 Application Sectors: Infra, Housing, Water, Automotive, Scaffolding
- 🌐 Export Presence: Western India (Raigad plant) → 100% export-oriented
📈 Q4 FY25 Highlights (Standalone)
| 🧾 Metric | Q4 FY25 | Q3 FY25 | QoQ Change | Q4 FY24 | YoY Change |
|---|---|---|---|---|---|
| Revenue | ₹288.3 Cr | ₹247.3 Cr | 🔼 +16.6% | ₹291.2 Cr | 🔽 -1% |
| EBITDA | ₹12.16 Cr | ₹9.81 Cr | 🔼 +23.9% | ₹13.78 Cr | 🔽 -11.8% |
| PAT | ₹4.44 Cr | ₹3.43 Cr | 🔼 +28.9% | ₹4.89 Cr | 🔽 -9.2% |
| EPS | ₹2.34 | ₹1.80 | 🔼 +30% | ₹2.58 | 🔽 -9% |
📣 “We expect the bottomline to improve further on the back of volume growth and the launch of several high-margin products.”
— Vijay Kaushik, Chairman & ED
📊 FY25 Annual Performance
| 🔍 Metric | FY25 | FY24 | Change |
|---|---|---|---|
| Revenue | ₹996.4 Cr | ₹1,072.7 Cr | 🔽 -7.1% |
| EBITDA | ₹38.5 Cr | ₹50.5 Cr | 🔽 -23.8% |
| Net Profit | ₹11.77 Cr | ₹17.72 Cr | 🔽 -33.6% |
| EPS | ₹6.21 | ₹9.34 | 🔽 -33.5% |
🧠 Despite the drop, QoQ momentum has picked up again — a sign that bottoming out might be done.
🏗️ The Real Story: Telangana Expansion
🔧 New Galvanizing Plant — Balanagar, Telangana
- 🏭 Commissioned recently
- ⚙️ Doubles GI pipe capacity from 24,000 to 48,000 MTPA
- 🚧 Focus: Crash barriers — high-margin, infra-centric, PLI-supported
🛣️ These zinc-coated crash barriers are:
- Long-lasting
- Safer than rigid barriers
- In high demand due to NHAI’s highway expansion and Smart City projects
💥 Growth Triggers for FY26
| Trigger | Impact |
|---|---|
| 🏗️ Infra Boom | Government’s infra spend = steel pipe demand up |
| 🧱 Crash Barriers | New vertical, better margins, niche segment |
| 🌍 Export Growth | Maharashtra unit is 100% export focused |
| 🏭 Capacity Doubling | Telangana ramp-up = more volumes + operational leverage |
| 🔁 Product Diversification | Adds monopoles, specialty steel, GI products |
| 💰 PLI Scheme | ₹17,000 Cr investment pipeline in specialty steel will create a value-chain pull |
🧠 EduInvesting Take
Vibhor Steel is one of those rare IPOs that didn’t get hyped, didn’t overprice, and didn’t tank. Instead, it’s quietly compounding — on the ground, not on X (Twitter).
✅ Q4 shows a comeback in margins
✅ EPS up 30% QoQ
✅ Value-added products being introduced
✅ Infra and export themes aligned
And all this, at a market cap of just ₹600 Cr.
🔍 Valuation Snapshot
- 📈 CMP: ₹156.02
- 🧾 TTM EPS: ₹6.21
- 📊 P/E: ~25x (TTM)
- 🏭 Book Value: ~₹65/share
- 📉 Stock is ~13% below IPO listing high
⚠️ Risks & Red Flags
- 🧾 High customer concentration: Over 80% revenue from Jindal Pipes
- 📉 Revenue decline YoY needs to be reversed
- 🧰 Still a contract manufacturer — may limit pricing power
- 🌍 Global steel price fluctuations can impact margins
- 🏭 Execution risk in scaling new plants & products
💬 Final Thoughts
“This isn’t a stock that’ll moon in one week. But in 2 years, it might quietly 2x just like it quietly doubled capacity.”
Vibhor is playing a sober, expansion-led strategy. If you’re a patient investor or tracking smallcap infra plays, VSTL might just be the most underrated steel stock of 2025.
📌 Just remember — it’s not a flashy mover. It’s a slow and steady compounding pipe.
Author: Prashant Marathe
Date: May 29, 2025
Tags: Vibhor Steel Tubes, VSTL, Q4 FY25 results, crash barriers, steel pipe expansion, Jindal Star, Telangana plant, BSE SME IPOs, EduInvesting coverage, contract manufacturing
