Vardhman Special Steels Limited

NSE: VSSL · Iron & Steel Products

52W Range₹206 ₹428

Snapshot

Unlock Vardhman Special Steels Limited's vital signs

Growth · Profitability · Valuation · Strength · Conviction

Company Overview

Business

Vardhman Special Steels Limited is a manufacturer of billets, steel bars, and bright bars specialising in alloy and special steel grades. The company primarily serves the automotive, engineering, tractor, and bearing industries.

Business Model

The company generates revenue through the production and sale of high-quality special steel products tailored for industrial and automotive applications. It operates as a key supplier to original equipment manufacturers requiring precise metallurgical specifications.

Growth Outlook

Growth is driven by the expansion of the domestic automotive sector and increasing demand for specialised steel components in engineering applications. The company continues to focus on maintaining its position as a preferred supplier for high-end industrial segments.

Key Risks

  • Cyclicality of Automotive Industry. The company's performance is highly sensitive to production volumes and demand fluctuations within the automotive sector.
  • Raw Material Price Volatility. Fluctuations in the prices of iron ore, scrap, and other alloying elements can significantly impact operating margins.
  • Regulatory and Environmental Compliance. Stricter environmental regulations regarding steel manufacturing processes may necessitate additional capital expenditure.
  • Competitive Intensity. The special steel market faces intense competition from both domestic players and international imports, which may exert pressure on pricing power.

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Key Metrics

REVENUE

₹1,807 Cr

TTM · standalone

+1.3%YoY

NET PROFIT

₹143 Cr

TTM · standalone

+64.9%YoY

EPS

₹14.87

TTM · standalone

+39.6%YoY

RETURN ON EQUITY

13.8%

TTM · standalone

+2.9 ppYoY

RETURN ON CAPITAL EMPLOYED

19.2%

TTM · standalone

+2.9 ppYoY

P/E

24.5x

Q1 FY27 · standalone

24.5 vs 24.2x5Y avg

EV/EBITDA

15.2x

Q1 FY27 · standalone

15.2 vs 19.6x5Y avg

EBITDA MARGIN

13.2%

TTM · standalone

+3.8 ppYoY

NET PROFIT MARGIN

8.5%

Q1 FY27 · standalone

+3.9 ppYoY

DEBT TO EQUITY

0.1x

Q1 FY27 · standalone

-0.08xYoY

Peers · Iron & Steel Products

CompanyMkt CapP/EEV/EBITDARev Gr YoYEBITDA MgnROEROCE1Y Return
Vardhman Special Steels LimitedVSSL
₹3,521 Cr24.4915.171.3%13.2%13.8%19.2%+35.7%
Kalyani Steels LimitedKSL
₹4,106 Cr15.5310.52-4.9%22.9%12.6%16.6%+13.4%
Welspun Specialty Solutions LimitedWELSPLSOL
₹3,946 Cr5.0%+93.7%
Sambhv Steel Tubes LimitedSAMBHV
₹3,792 Cr22.9813.2312.0%21.3%23.6%+5.0%
JTL Industries LimitedJTLIND
₹3,603 Cr29.6718.9319.0%8.7%9.0%12.3%+17.5%
Venus Pipes & Tubes LimitedVENUSPIPES
₹3,379 Cr32.4117.6121.7%17.2%17.3%26.8%+24.7%

As of Q1 FY27

Financials