Scoda Tubes Limited, a rising star in India’s stainless steel manufacturing sector, made a strong debut on the stock exchanges in June 2025. Since then, retail and institutional investors alike have been closely tracking its growth trajectory and potential valuation upside. The big question now is: what is the Scoda Tubes share price target for 2025, 2026, and beyond?
In this detailed blog post, we’ll break down the company’s fundamentals, IPO performance, projected price targets, and key risks—offering a clear picture for anyone considering investing in this promising steel stock.
Scoda Tubes IPO Overview: A Strong Start
Scoda Tubes launched its ₹220 crore IPO between May 28 and May 30, 2025, with a price band of ₹130–₹140 per share. The issue was met with overwhelming investor demand, with an overall subscription of 53.39 times:
- QIBs: 69.51x
- NIIs: 112.84x
- Retail: 18.71x
The stock was listed on June 4, 2025, at ₹140 with no immediate listing gain. However, momentum picked up quickly in secondary trading, and the stock soon crossed the ₹200 mark.
Current Scoda Tubes Share Price and Valuation Snapshot
As of June 18, 2025, Scoda Tubes share price is trading between ₹170.72 and ₹180.90, with an intraday high of ₹205. The market capitalization stands around ₹1,198 crore, and buy-sell quotes hover near ₹202–₹203.
Key Metrics:
- P/E Ratio: 59.7 (expensive compared to sector average)
- ROE (FY24): 34%
- EPS (FY24): ₹4.60
- Market Sentiment: Bullish but cautious
The high P/E and strong ROE indicate investor confidence, though valuation remains a concern in the short term.
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Scoda Tubes Share Price Target: 2025 to 2030
Here’s a year-wise Scoda Tubes Share price projection based on current financials, technical analysis, and industry outlook:
| Year | Minimum Target (₹) | Maximum Target (₹) |
|---|---|---|
| 2025 (June) | 146.95 | 147 |
| 2026 (Dec) | 230 | 290 |
| 2027 | 400 | 655 |
| 2028 | 600 | 860 |
| 2029 | 815 | 1045 |
| 2030 (Dec) | 1187 | 1320 |
These figures suggest a potential 10x return over a five-year horizon, assuming consistent earnings growth and favorable market conditions.
2030 Month-wise Breakdown
| Month | Minimum Target (₹) | Maximum Target (₹) |
|---|---|---|
| January | 975 | 1080 |
| June | 1075 | 1168 |
| December | 1187 | 1320 |
This forecast is based on expected market expansion, continued profitability, and global steel demand. However, these are speculative estimates, not guarantees.
What’s Driving the Bullish Outlook?
1. Rapid Financial Growth
Scoda Tubes has shown impressive year-on-year revenue and PAT growth:
- FY22: ₹194 crore revenue | ₹2 crore PAT
- FY23: ₹305 crore revenue | ₹10.3 crore PAT
- FY24: ₹400 crore revenue | ₹18.3 crore PAT
- 9M FY25: ₹361.2 crore revenue | ₹24.9 crore PAT
Profit growth CAGR (TTM): 77%
Sales growth CAGR (TTM): 31%
The company is growing faster than many of its peers in the metal and mining sector.
2. Operational Efficiency
- Operating Margin: Increased from 5% in FY22 to 15% in FY24
- EPS: Jumped from ₹0.72 in FY22 to ₹4.60 in FY24
- ROE: 34% — a strong return on shareholder equity
These metrics reflect strong cost control and effective capital deployment, enhancing long-term value.
3. Sustainable Manufacturing and Certifications
Scoda Tubes operates a modern, solar-powered plant in Gujarat, cutting emissions and boosting energy efficiency. It holds globally recognized certifications, including:
- ISO 9001:2015
- ISO 14001:2018
- ISO 45001:2018
- PED 2014/68/EU
- AD 2000 Merkblatt WO
Its focus on sustainability aligns with rising ESG investing trends.
4. Expanding Product Portfolio and Client Base
The company’s stainless steel tubes and pipes are used in sectors like:
- Oil & Gas
- Pharmaceuticals
- Power & Energy
- Chemical Processing
Product types include seamless/welded tubes, U-tubes, duplex variants, etc., helping diversify its revenue base.
Risks to Watch Before Investing
While the growth story is strong, investors must consider the following risks:
1. High Valuation
At a P/E of nearly 60, the stock is expensively priced, which means expectations are already baked in. Any earnings miss could trigger corrections.
2. High Working Capital
FY24 data shows 162 working capital days, indicating potential cash flow pressure.
3. Promoter Holding Reduction
Promoter holding dropped by 33.6%, now at 66.4%. While still a majority, the reduction raises governance questions for some investors.
4. Market Volatility and Commodity Risk
Being part of the steel segment, the company is vulnerable to global commodity cycles, especially raw material price fluctuations.
Expert View: Should You Invest in Scoda Tubes?
Experts remain cautiously optimistic:
- Short-term: Resistance at ₹205. If it breaks, targets of ₹210–₹220 are likely.
- Mid-term (2026–2027): ₹400–₹650 possible, depending on earnings and steel demand.
- Long-term (2030): ₹1,000+ achievable if current momentum continues.
Analysts advise monitoring quarterly results and global steel trends before adding or averaging.
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Conclusion: Scoda Tubes Share Price Target Holds Strong Upside, But Not Without Risks
The Scoda Tubes share price target of ₹1,320 by 2030 may look ambitious—but it’s grounded in the company’s robust fundamentals, revenue growth, and sector potential. However, due to high current valuation and cyclical market risks, investors should approach with measured optimism.
Those with a high-risk appetite and long-term horizon may consider gradual accumulation on dips, while conservative investors should wait for a better entry point or quarterly performance confirmation.
Either way, Scoda Tubes is a stock to watch closely in the metals & mining space.