Rajputana Stainless Limited — IPO Research Report
Research Desk | March 2026
IPO Details
Parameter | Details |
|---|---|
IPO Dates | 9 – 11 March 2026 |
Price Band | ₹116 – ₹122 per share |
Issue Size | ₹254.98 crore |
Fresh Issue | ₹178.73 crore |
OFS | ₹76.25 crore |
Lot Size | 110 shares (₹13,420) |
Listing | BSE & NSE |
Listing Date | 16 March 2026 |
1. Investment Thesis
Rajputana Stainless Limited is a niche manufacturer of long and flat stainless steel products, operating under the brand "RSL" with a portfolio spanning billets, forging ingots, rolled black and bright bars, flats and pattis across 80+ steel grades.
The company does not offer a revolutionary growth story — revenue has remained largely in the same ball park for the past three years between ₹909 crore and ₹947 crore, and the stainless steel long products industry is a slow-moving, commodity-linked sector without any near-term structural catalyst.
That said, Rajputana is a fundamentally solid business. Margins have expanded consistently every year — PAT has grown 4.5x since FY22 — debt is declining, return on capital is strong at 31.72%, and the company has served the same customers for over three decades. The IPO proceeds will repay ₹98 crore of debt and fund a new seamless pipes facility, which could open room for capex growth.
For investors seeking a steady, well-run industrial business at a reasonable valuation, Rajputana merits attention. For those seeking high growth, this is not that IPO.
2. Business Model
Rajputana Stainless operates a single, fully integrated manufacturing facility in Kalol, Panchmahal, Gujarat. The facility operated at near full capacity utilisation of ~99% in FY25, indicating strong and consistent demand for its products.
Manufacturing Capacity
Parameter | Details |
|---|---|
Location | Kalol, Panchmahal, Gujarat |
Total Area | 35,197 sq.m |
Melting Capacity | 48,000 MTPA |
Rolling Capacity | 36,000 MTPA |
Bright Bar Capacity | 6,000 MTPA |
Capacity Utilisation (FY25) | ~99% |
Revenue Mix — Product Wise (H1 FY26)
Product | Revenue Share |
|---|---|
Rolled Black Bars | 57% |
Billets | 17% |
Rolled Bright Bars | 15% |
Flats, Pattis & Others | 11% |
Customer Profile
Parameter | Details |
|---|---|
Total Customers | 370 |
Long Term Clients (3+ years) | 167 |
Revenue from Long Term Clients | 75.83% |
Domestic Revenue | 98.4% |
Export Revenue | 1.6% |
Export Markets | USA, UAE, Turkey & 6 others |
Use of IPO Proceeds
Purpose | Amount (₹ Cr) | % of Fresh Issue |
|---|---|---|
Seamless Pipes Facility (Capex) | 18.57 | 10.4% |
Debt Repayment | 98.00 | 54.8% |
General Corporate Purposes | ~62.00 | 34.8% |
Total Fresh Issue | 178.73 | 100% |
Key Observations:
Over half the fresh issue goes toward debt repayment — Primary objective of IPO
Capex toward seamless pipes is modest at just ₹18.57 crore
~₹62 crore allocated to General Corporate Purpose with no specific end use disclosed
Absence of formal long term contracts with customers despite strong relationship history is a key risk
Promoter selling shares via OFS at ₹122 vs acquisition cost of ₹0.91 — significant promoter exit worth noting
3. Industry Position
India is the 2nd largest consumer and 3rd largest producer of stainless steel globally, accounting for roughly 7% of world output. FY25 domestic consumption stood at 4.8 million tonnes, growing at ~8% YoY, with the overall market expected to reach $12.90 billion by 2031 at a CAGR of 8.1%.
Demand is primarily driven by infrastructure, automotive, oil & gas, engineering and defence sectors. The sector is cyclical in nature — closely tied to industrial activity and government capex — making near term growth steady but not spectacular.
4. Financial Quality
Profit & Loss Summary
Parameter | FY22 | FY23 | FY24 | FY25 | H1 FY26 |
|---|---|---|---|---|---|
Revenue (₹ Cr) | 766 | 948 | 910 | 932 | 502 |
Expenses (₹ Cr) | 754 | 922 | 873 | 883 | 470 |
EBITDA (₹ Cr) | 30 | 44 | 59 | 74 | 46 |
Net Profit (₹ Cr) | 8.70 | 24.04 | 31.63 | 39.85 | 24.41 |
PAT Margin | 1.14% | 2.54% | 3.48% | 4.27% | 4.87% |
EBITDA Margin | 3.95% | 4.63% | 6.53% | 7.92% | 9.1% |
Key Ratios
Ratio | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|
EPS (₹) | — | 3.49 | 4.59 | 5.78 |
ROE (%) | 15.06 | 29.62 | 28.17 | 26.23 |
ROCE (%) | 18.51 | 25.72 | 32.17 | 31.72 |
NAV (₹) | 8.38 | 11.78 | 16.29 | 22.05 |
Debt to Equity | 1.59 | 0.98 | 0.71 | 0.66 |
5. Competitive Positioning & Peer Comparison
Metric | Rajputana Stainless | Mangalam Worldwide | Mukand Ltd |
|---|---|---|---|
Segment | SS long & flat products | SS bars & wires | SS & alloy bars |
Revenue (₹ Cr) | 932 | 1,061 | 4,890 |
PAT (₹ Cr) | 39.85 | 43.20 | 60.10 |
PAT Margin | 4.27% | 2.76% | 1.27% |
EBITDA Margin | 7.92% | 5.80% | ~4-5% |
ROE | 26.23% | 13.10% | -8.25% |
ROCE | 31.72% | 14.40% | 7.99% |
PE Ratio | 20.89x | 22.57x | 26.34x |
EPS | 5.84 | 10.29 | 5.24 |
Debt/Equity | 0.66x | 0.77x | High |
Rajputana offers better PAT margins than both listed peers while trading at a lower PE — making it relatively attractively valued on a profitability basis. Its ROE of 26.23% and ROCE of 31.72% are significantly superior to both peers, reflecting stronger capital efficiency. Mukand's negative 3-year average ROE of -8.25% makes it a less relevant peer for valuation purposes. However, the flat revenue trajectory over the past three years remains a key concern and should be kept in mind when evaluating the growth potential of this business.
6. Strengths
Wide product portfolio — 80+ steel grades across long and flat products, reducing dependency on any single industry or application.
Margins improving every year — Revenue has been flat but PAT has grown 4.5x since FY22 — the company is clearly getting more efficient.
Strong return ratios — ROE of 26.23% and ROCE of 31.72% — significantly better than listed peers.
Debt to Equity declining — Down from 1.59x in FY22 to 0.66x in FY25, and post IPO repayment will bring it down further.
Loyal customers — 167 long term clients contributing 75%+ of revenue in a commoditised industry is a good sign.
7. Key Risks
Flat revenue — Stuck in the ₹900-950 crore range for three years with no meaningful top line growth.
No long term contracts — 167 loyal customers but nothing on paper — vulnerable in a competitive commodity market.
Raw material volatility — Nickel and chromium prices are globally driven. Any spike directly hits margins.
Customer concentration — Top 10 customers = 42% of revenue with no contractual lock-in.
GCP allocation — ₹62 crore of IPO proceeds with no specific end use disclosed.
Promoter OFS — Selling at ₹122 vs acquisition cost of ₹0.91 — significant promoter profit taking worth noting.
8. Verdict
Rajputana Stainless is not an exciting IPO — revenue has been flat, the industry is slow moving and there is nothing revolutionary about the business. However, for investors looking for a steady, well run industrial business at a reasonable valuation, considering its merits.
The company's consistently improving margins, strong return ratios and a cleaner post-IPO balance sheet make a case for long term value creation. Investors should go in with a long term view of steady growth — any listing gains would simply be a bonus.
This is not an IPO to apply for listing gains. It is an IPO for patient, long term investors.
This report is for informational purposes only and does not constitute investment advice. Research Desk is an independent publication.