Anand Seamless SME IPO

Strengths · 8

• 01Sales recovered strongly in FY2026, rising 67% from Rs 33.64 crore to Rs 56.17 crore.
• 02Profit more than doubled over the same year, from Rs 2.65 crore to Rs 5.48 crore.
• 03EBITDA improved from Rs 5.90 crore to Rs 10.22 crore, and the EBITDA margin of 16.09% is healthy for a steel products maker.
• 04The PAT margin of 9.31% is well above what commodity pipe makers earn, reflecting the more technical nature of seamless tube.
• 05Seamless tube is a harder product to make than welded pipe, which limits how many competitors can serve the same customers.
• 06Its products go into oil and gas, petrochemicals, power and process industries, so it is not tied to a single end market.
• 07The issue is priced at about 15.72 times earnings on an EPS of Rs 4.58.
• 08The whole issue is fresh capital going into capacity expansion, technology upgrade and cost reduction at its Mahesana plant.

Risks · 9

• 01The recovery is only one year old and the trend is choppy. Total income was Rs 37.00 crore in FY2024, fell to Rs 33.64 crore in FY2025 and then rose to Rs 56.17 crore in FY2026.
• 02Debt is high. Total borrowing was Rs 28.21 crore against a net worth of Rs 19.52 crore, a debt to equity ratio of 1.38, and it has doubled in two years from Rs 14.21 crore.
• 03Return on capital employed is only 11.65%, which shows how much capital the plant ties up relative to what it earns.
• 04Demand depends on capital spending by oil and gas, petrochemical and power companies, which is lumpy and can pause for years at a time.
• 05Steel input prices move sharply and cannot always be passed on where orders are already priced.
• 06The whole business runs from one facility at Indrad in Mahesana, so there is single location risk.
• 07This is a fixed price issue at Rs 72 per share, so there is no price discovery through bidding.
• 08Promoter holding will come down from 100% to 70.39% after the issue.
• 09This is an SME issue. One lot is 1,600 shares, which is Rs 1.15 lakh at the issue price, and SME shares usually trade in low volume after listing.

Anand Seamless Limited was started in 2005. It makes seamless tubes, pipes and finned tubes used in industry. A seamless tube is drawn from a solid billet rather than rolled and welded from a sheet, so it has no joint along its length. That matters wherever a tube has to hold high pressure or heat, which is why these are used in the equipment they go into rather than in ordinary plumbing.

Its range covers carbon steel and alloy steel seamless tubes, heat exchanger tubes, U-tubes and several types of finned tubes. Finned tubes carry small ridges along the outside to increase surface area, which helps transfer heat faster.

Its products are used in oil and gas, petrochemicals, power plants and general process industries. Its manufacturing facility is at Village Indrad on the Chhatral-Kadi Road in Mahesana district of Gujarat, and the money raised in this issue is going into expanding capacity, upgrading technology and reducing operating cost at that plant.

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