Scoda Tubes - Muted Performance | Q1FY27 Company Update
15 Aug 2026
Companies Updates
Scoda’s 1QFY27 performance was a miss to our estimates due to higher than expected impact of shutdown at the piercing plant and labor shortage. This, along with high gas costs, led to high operating expenses which cascaded into a miss-on margin. Operations have resumed normalcy from July’26 and we expect volumes to recover in 2QFY27E. Strong demand from the power sector and data centers, expanding global approvals and capacity expansions in welded pipe reinforce our conviction for re-rating. The phase 1 and phase 2 of new welded capacity is on track, with commercial sales expected to start from Q3FY27E. However, rising competition, high stainless steel RM cost and other input cost inflation has led to downward revision in the margins, in turn leading to 6%/ 7% cut in FY27E/ FY28E estimates. Weak profitability has led to cut in target multiple. We now value Scoda tubes at a 16x Jun’28E PE (17x previously) to arrive at a TP of Rs 184/sh (previously Rs 200). The downward revision in TP is due to cut in earnings and valuation multiple, despite rollover. We retain BUY rating due to sharp correction in share price (rich valuation).
Scoda Tubes ltd. Stock Price Chart
Weak quarter due to temporary shutdown and labour shortage:
Scoda reported revenues of Rs 1.2bn; +28% yoy; lower than our estimates of Rs 1.3bn. The weak performance was mainly due to shutdown of the piercing plant, following gas supply disruptions and shortage of labor.
Elevated operational expenses affect margins:
Scoda reported EBITDA margins at 12.9%; -173bps yoy, translating into EBITDA of Rs 160mn; +13% yoy. Margins were impacted by low fixed cost absorption due to curtailed operations and high gas costs. PAT degrew by 26% yoy to Rs 53mn.
What drives our conviction in the thesis?
The piercing plant has resumed normal operations from July’26 and utilization at seamless plant remains healthy. The fundamental conviction in Scoda is driven by strong underlying market demand. The Power sector is forecasted to be the primary demand driver for the three years, supported by major thermal power capacity additions announced by NTPC and Adani Power along with increasing opportunities in data centers for welded pipes. Scoda is well-positioned to scale up utilization from the newly secured approvals at entities like ADNOC, SABIC, Reliance and BARC. This will be further supported by large BHEL tenders (now includes hot pierced tubes in their manufacturing criteria) and increasing presence in the US and Europe. The welded pipe commercialization is on track, and commercial sales are expected from Q3FY27E. However, rising competition, high stainless steel RM cost and other input cost inflation has led to downward revision in the margins, in turn leading to 6%/ 7% cut in FY27E/ FY28E estimates. Weak profitability has led to cut in target multiple.
Valuation & Key risks:
We now value Scoda tubes at a 16x Jun’28E PE (17x previously) to arrive at a target price of Rs 184/sh (previously Rs 200). The downward revision in TP is due to cut in earnings and valuation multiple, despite rollover. We retain BUY rating due to sharp correction in share price (rich valuation). Key Risks: Weakness in export demand, delay in setting up of new welded plant.
Company website: https://www.scodatubes.com/
| Rating | BUY |
|---|---|
| CMP* | INR 134 |
| Target Price | INR 184 |
| Upside | 37% |
*CMP is as per report published date
Click to download the full Scoda Tubes Ltd Q4FY26 Company Update
Analyst:
- Sahil Sanghvi - Research Analyst, Institutional Equities (NISM-201900004744)
- Uvais Khatri - Research Associate, Institutional Equities (NISM-202300049054)
FAQs on Scoda Tubes Ltd Q1FY27 Company Update
These FAQs highlight key takeaways from MNCL’s institutional equity research on Scoda Tubes, covering performance trends, growth drivers and risk factors relevant for long-term investors.
What is the target price for Scoda Tubes?
The supplied research sets a target price of ₹184 per share, revised from ₹200. The target is a research-based valuation estimate and should not be considered a guaranteed return.
What is the rating on Scoda Tubes?
The supplied research retains a BUY rating on Scoda Tubes, citing the potential recovery in operations, strong underlying demand and capacity expansion opportunities.
How did Scoda Tubes perform in 1QFY27?
Scoda Tubes reported revenue of ₹1.2 billion, up 28% year-on-year. EBITDA was ₹160 million, while EBITDA margin declined 173 basis points year-on-year to 12.9%. PAT fell 26% to ₹53 million.
What affected Scoda Tubes' 1QFY27 performance?
The quarter was affected by a temporary piercing-plant shutdown following gas supply disruptions, labour shortages, low fixed-cost absorption and elevated gas costs.
Has Scoda Tubes' piercing plant resumed operations?
According to the supplied company update, the piercing plant resumed normal operations from July 2026, with volumes expected to recover from 2QFY27E.
What are Scoda Tubes' key growth drivers?
The supplied research identifies power-sector demand, data-center opportunities, global approvals, exports and capacity expansion in welded pipes as important potential growth drivers.
When are Scoda Tubes' new welded-pipe capacities expected to start commercial sales?
Phase 1 and Phase 2 of the new welded capacity are described as being on track, with commercial sales expected to begin from Q3FY27E.
What is the outlook for Scoda Tubes' margins?
Margins remain under pressure from rising competition, high stainless-steel raw-material costs and other input-cost inflation. The supplied research has consequently reduced FY27E and FY28E estimates by 6% and 7%, respectively.
What are the key risks for Scoda Tubes?
The supplied research highlights weakness in export demand and delays in setting up the new welded plant as key risks. Higher input costs and competitive intensity may also affect profitability.
Should investors consider Scoda Tubes shares?
The supplied research retains a BUY rating. This represents the research provider's view and is not personalised investment advice or a guarantee of future performance. Investors should conduct independent due diligence and consult a SEBI-registered investment adviser where appropriate.
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We reiterate BUY on Goldiam International / revise target price to Rs. 515 (vs. Rs. 470 earlier) as we roll forward our valuation to Q3FY28E and upgrade estimates by ~5%, driven by stronger-than-expected execution. The company delivered its best-ever...
Ratnamani Metals and Tubes Ltd.: Core pipes weak; subsidiaries anchor margins - Company Update
We upgrade Ratnamani Metals to BUY (from Accumulate earlier); though revise our target price lower to Rs 2,460 given miss to our estimates and consequently the cut in our earnings. Q3FY26 saw core pipes business witness a sharp decline due to delayed...
Carysil Ltd: Crafting the future of modern kitchens - Company Update
We retain our BUY rating on Carysil Ltd with a revised target price of Rs 1,190 (earlier Rs 1,140), factoring in a rollover to Q3FY28E and a ~4% trim to FY27E–FY28E earnings. Strong traction in quartz and stainless-steel sinks, upcoming capacity ex...
Wonderla Holidays: Chennai Takes The Baton As Mature Parks Plateau - Company Update
We upgrade Wonderla Holidays to BUY from HOLD, as we revise earnings estimates upward by ~5% and roll forward our valuation to Q3FY28E. The company continued to deliver ARPU-led growth at mature parks during the quarter, while footfall growth remaine...
Rashi Peripherals Ltd: Stellar quarter - Company Update
We retain "BUY" rating and raise our target price to Rs. 610 (vs Rs 505 earlier). Rashi reported topline growth of 42.6% YoY in a seasonally weak quarter, on the back of strong sales volume & prices across PES segment (56% of revenue) and LIT (44...
Triveni Turbine: Worst likely behind, recovery pending - Company update
We upgrade our rating on Triveni Turbine to BUY, supported by improving execution visibility and a gradual recovery in order inflows. While new applications such as CO₂-based energy storage, MVR, and turbine servicing are likely to be incrementally...
The Anup Engineering: Through the Trough, Recovery in the offing - Company Update
We upgrade our rating on The Anup Engineering to BUY (previously HOLD) and revise our target price to Rs 2,515. The company is not yet out of the woods, with the market awaiting clear signs of a recovery in order inflows. That said, we believe the wo...
Saksoft Ltd: Temporary headwinds, normalization in sight - Company Update
We maintain our "BUY" rating with a revised target price of Rs 285 (vs 325). Saksoft delivered weak results – a) topline growth saw a de-growth of 3% despite the favourable currency mix, b) Top 2 clients have cut spends in Q3, the pain co...
Mayur Uniquoters: Riding export momentum - Company Update
We maintain our BUY rating on Mayur Uniquoters with a revised target price of Rs. 825 (earlier Rs. 770), as we roll forward our valuation to Q3 FY28E and upgrade our FY27E/FY28E earnings estimates by ~4%. The company delivered a robust operating perf...
Scoda Tubes Ltd.: Slight miss; structural thesis intact - Company Update
We retain BUY rating on Scoda Tubes but upward revise target price of Rs 250 (previously Rs 240). Increase in target price is mainly due to valuation rollover. Q3FY26 was a strong performance on offtake, marginally offset by pricing weakness and dela...
TD Power Systems: Global demand fuelling growth visibility - Company Update
We upgrade TD Power to BUY / revise our target price upwards to Rs 875 (vs. Rs 840 earlier). Q3-FY26 results were a tad lower than our expectations and reflect timing issues rather than demand or competitive weakness. Going ahead, the Tumkur facility...
SJS Enterprises Ltd - Premiumisation and Export-led Outperformance - Company Update
We revise our target price on SJS Enterprises upwards to Rs2,190 to account for an increase in revenue/ margin estimates, and valuation roll-forward to Dec’27E. SJS delivered another quarter of strong industry outperformance, with record profitabil...
Sundram Fasteners Ltd.: Exports spoil the show - Company Update
We lower target price to Rs 1035 (previously Rs 1085) and maintain Accumulate rating for Sundram Fasteners Ltd. (SFL). We downward revise our multiple to account for extended weakness on exports including delay in EV order to North America, in turn l...
ASK Automotive Ltd. - Firing on all cylinders - Company Update
We upgrade ASK Automotive to BUY rating on attractive valuation and increase our TP to Rs590 (Rs525 previously). The increase in TP is largely driven by valuation rollover. ASK delivered a strong Q3, materially ahead of our expectations, led by broad...
Kirloskar Ferrous Ind. - Casting and tubes outperform, spreads spoil the show | Company Update
We lower our target price to Rs 620 (previously Rs690) and retain BUY rating for Kirloskar Ferrous Industries Ltd. (KFIL). The decrease in TP is mainly to account for weak commodity spreads and realization across end products . KFIL’s 2QFY26 perfor...
IFGL Refractories Ltd. - Domestic focus continues to payoff; overseas improving gradually | Company Update
We decrease target price to Rs 280 (previously Rs 300) but maintain BUY rating. The change in TP is mainly due to cut of earnings estimates. IFGL delivered another quarter of strong standalone growth as its domestic-focused strategy continues to gain...
Borosil Ltd. - Glassware ignites growth; levers to power margins | Company Update
We reiterate our BUY on Borosil Ltd and revise our target price upwards to Rs. 460 (vs. Rs. 420 earlier), driven by strong demand momentum and emerging structural growth and margin levers. The company continues to deliver robust growth in its glasswa...
Venus Pipes & Tubes Ltd. - Export and welded drives confidence | Company Update
We increase Target Price to Rs 2040 (previously Rs1,950) and retain BUY for Venus Pipes & Tubes (VENUS) due to attractive valuations. Increase in TP is primarily due to valuation roll forward. Revenue in 2QFY26 was strong, supported by a sharp re...
ESAB India - Encouraging quarter; growth in focus | Company Update
We retain Buy on ESAB India with TP revised upwards to Rs 6,850 (vs Rs 6,554 earlier) on valuation rollover. The company delivered a strong quarter, with overall growth hinting at signs of recovery supported by margin gains. ESAB continues to o...
The Anup Engineering - All eyes on cash conversion | Company Update
We maintain our HOLD rating on Anup Engineering but increase TP to Rs 2,475 (vs Rs 2,375 earlier) considering steady operational performance and an unchanged growth outlook coupled with valuation rollover. The impact from higher taxes was anticipated...
Rashi Peripherals Ltd – Turns cashflow positive
We retain "BUY" rating with a Target Price of Rs. 505 (vs Rs 525 earlier). Rashi Peripherals ltd reported decent topline growth, on the back of strong sales from the PES segment (PCs, Desktops). Our dealer checks suggest demand is improving for AI-en...
Wonderla Holidays - Chennai on Track; Expansion Visibility Low | MNCL Research Update
We reiterate our HOLD rating on Wonderla Holidays Ltd while revising our target multiple downwards to 18x (from ~20x) and rolling forward our valuation to Q2FY28E. In a seasonally weak quarter, the company delivered a better-than-expected topline, pr...
R Systems International - Strong growth tempered by higher SG&A & RSU costs | MNCL Research Update
We maintain our "BUY" and retain our target price to Rs 620. R Systems delivered higher than expected topline growth (7.9% vs our estimate of 3.5% in INR terms). EBITDA was in line with our estimates / margins dipped 70bps QoQ on the back of higher R...
SJS Enterprises Ltd - Designed to outperform | MNCL Research Update
We revise our target price on SJS Enterprises upwards to Rs1,930 to account for an increase in revenue/ margin estimates, valuation roll-forward to Sept’27E and target multiple expansion. SJS delivered another quarter of strong industry outperforma...
Channel checks - Opalware and Glassware - Borosil Sets the Benchmark in Opalware Retail
We conducted channel checks across key markets in Western and Northern India to gauge demand trends (qualitative aspects) in the Opalware and Glassware categories. We also analysed balance sheet / profitability trends (quantitative parts) across key ...
Goldiam International - LGD Momentum builds; ORIGEM scaling | Company Update
We reiterate our BUY rating on Goldiam International with a target price of Rs. Rs.470. Despite near-term uncertainty around U.S. tariff implications, the company has delivered an exemplary performance driven by robust topline growth and increasing w...
ASK Automotive Ltd – Meets Expectations; ALPS & Aftermarket to Drive Growth | MNCL Research Company Update
We retain ACCUMULATE on ASK Automotive while lowering our target price to Rs 525. The lowering of TP follows downward revision in our revenue and margin estimates, partially offset by valuation rollover. ASK delivered a strong Q2, broadly in line wit...
Sundram Fasteners Ltd. - Steady Domestic Momentum Offsets Export Weakness; upgrade to Accumulate - Company Update
We increase target price to Rs 1085 (previously Rs1030) and upgrade our rating to Accumulate for Sundram Fasteners Ltd. (SFL) due to steep correction in share price. Increase in TP is mainly due to valuation roll forward. SFL’s performance in 2QFY2...
JNK India Ltd – End of Overhang, Execution to Drive Growth | Q2FY26
Our interaction with JNK India led to the following conclusions: JNK India’s legacy low-margin orders (NRL, IOCL) delayed by site and client issues are expected to conclude largely by Q2FY26, with minor spillover into Q3FY26. From Q3FY26, high-marg...
Ratnamani Metals and Tubes Ltd. - Subsidiaries outperform | Company Update
We increase target price to Rs 2710 (previously 2690) and upgrade to Accumulate rating. Increase in target price is due to valuation roll forward. In 2QFY26, the core pipes business saw modest growth as strong offtake was offset by weak realizations....
