1. At a Glance – The IPO Baby with a Furnace and a Dream
VMS TMT is currently trading at ₹47.3, with a market cap of ₹236 Cr. The stock is down 22.8% in the last 3 months, probably because the market loves drama more than steel. The company is valued at a P/E of 16, almost hugging the industry median of 19.9 like a shy cousin at a wedding.
Latest quarter (Dec 2025, Q3 FY26):
- Sales: ₹202.13 Cr
- PAT: ₹8.04 Cr
- EPS: ₹1.62
- ROE: 24.6%
- ROCE: 14%
- Debt to Equity: 1.29
- Book Value: ₹46.8
- Price to Book: 1.01
Yes, you read that right. It’s trading almost at book value. The market is basically saying: “We’ll give you what your accountant says you’re worth. No more, no less.”
They raised ₹148.5 Cr via IPO in September 2025, partly to repay borrowings. Debt still stands at ₹299 Cr. So the gym membership has started, but the belly fat hasn’t reduced fully.
Now the real question: Is this a disciplined steel player or just another furnace running on borrowed money?
Let’s dig.
2. Introduction – From Scrap to Swag
Incorporated in 2013, VMS TMT Limited manufactures Thermo Mechanically Treated (TMT) bars. In simple language: the steel rods holding your house together when real estate developers promise “earthquake resistant”.
Their factory is in Bhayla Village, Ahmedabad. They run a 30-ton induction furnace and a rolling mill. In September 2024, they completed backward integration. Translation: instead of buying billets from others, they now melt scrap and produce billets themselves.
Installed capacity:
- TMT Bars: 2,00,000 MT annually
- Environmental clearance for 3,60,000 MT per annum
- Billet capacity: 2,16,000 MT
Production in FY25:
- TMT Bars: 1,26,065 MT
- Billets (partial year): 50,337 MT
Utilization dipped to 63% in FY25 after >80% in previous years. That’s like owning a 6-lane highway but using only 3 lanes.
Their revenue mix:
- TMT Bars – 91.5%
- Scrap & others – 7.5%
- Billets & binding wire – crumbs
Distribution:
- 3 distributors
- 227 dealers
Retail forms 78.5% of FY25 sales.
And yes — they sell under Kamdhenu brand (non-exclusive) in Gujarat, except Saurashtra & Kutch due to MoU with Aditya Ultra Steel.
So basically: Gujarat is divided like IPL
