Steel stock in focus after expanding product portfolio & starting trial production at 120,000 MTPA plant

The shares of a microcap steel company that specializes in the production, export, and distribution of steel pipes and tubes are in focus after announcing its plans to expand its existing product portfolio and the successful commencement of the 120,000 MTPA plant’s trial production. 

Price Action 

The shares of Vibhor Steel Tubes Ltd, with a total market capitalization of Rs 273.63 Crores, reached an intraday high of Rs 147.95 per share, gaining around 4 percent on Tuesday’s trade. However, as of noon, the shares had retreated from the day’s high and were trading at Rs 145 per share, which was 2 percent higher than the previous closing price of Rs 142.35. 

What Happened 

As per a press release dated March 3, 2025, Vibhor Steel Tubes Limited announced that it has planned to expand its existing product portfolio by introducing new products, i.e., High Mast Lighting Poles, Octagonal Poles, and Monopoles, which come under the category of the Infrastructure & Utility Structures. 

The expected launch date for the High Mast Lighting Poles & Octagonal Poles is by the end of April 2025, and for Monopoles is by the end of August 2025. The company also announced its successful commencement of trial production at its Unit III plant in Odisha with an installed capacity of 120,000 MTPA. It expects the commercial production to begin at the end of March 2025. 

Also read: Microcap stock jumps 6% after winning ₹52 Cr orders from TN, Kerala & Chandigarh Airports 

Product Portfolio 

It produces a diverse portfolio that includes ERW black pipes, galvanised pipes, hollow sections, and primer-painted pipes, catering to the construction, domestic, agricultural, and industrial sectors. 

Significant Partnership

It has a contract manufacturing agreement with Jindal Pipes Ltd to produce and supply finished goods under the brand name “Jindal Star”, which currently derives over 80 percent of its total turnover from this single segment.  

Financials

The company reported a slight decline of 1.5 percent YoY in Revenue from Operations from Rs 251 Crores in Q3FY24 to Rs 247.25 Crores in Q3FY25. Their Net Profits also decreased by 20.4 percent YoY from Rs 4.31 Crores to Rs 3.43 Crores over the same period. 

About Vibhor Steel Tubes

The company specializes in the manufacturing, export, and distribution of steel pipes and tubes to various heavy engineering industries in India. It operates two manufacturing facilities: one with an installed capacity of 125,000 MTPA in Maharashtra and another with an installed capacity of 96,000 MTPA in Telangana. 

Written By Adhvaitha Nayani

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