Jindal Supreme

Jindal Supreme

By Geetanjali Kedia
about 1 day ago

IPO Size: Rs. 125 cr

  • Fresh Issue of Rs. 100 cr (21% dilution) for repayment of Rs. 71 cr of Rs. 92 cr gross debt as of 30.6.26
  • Offer for Sale (OFS) of Rs. 25 cr by promoter (100% stake to drop to 74%)

Price band: Rs. 88-93 per share

M cap: Rs. 474 cr (IPO is 26% of m cap)

IPO Date: Wed 16th Sep to Fri 18th Sep 2026, Listing Wed 23rd Sep 2026

Grey Market Premium (GMP): We are strongly against ‘grey market premium’ as it is an unofficial figure, against SEBI guidelines.

 

Steel Pipes and Tubes Maker

Jindal Supreme is a 52-year-old Hisar, Haryana-based manufacturer of Mild Steel (MS) black pipes, tubes, galvanized pipes, metal beam crash barriers, galvanized iron (GI) tubular poles. Installed capacity of 1.71 lakh MTPA as of 30.6.26 stands at 90,000 MTPA for MS black pipe / tube, 45,000 MTPA for MS galvanized pipe / tube, 24,000 MTPA for metal beam crash barrier and 12,000 MTPA for GI tubular poles, which was close to 65% utilized.

 

Metal Beam Crash Barrier to drive Growth

While installed capacity has been stagnant for past 2 fiscals, recently, metal beam crash barrier installed capacity increased by 75% from 24,000 MTA as of 30.6.26 to 42,000 MTPA as of 31.7.26, through Rs. 5.5 cr internally funded capex. This product was added only in FY25 and already contributes to 17% of FY26 revenue of Rs. 675 cr, within 2 years of launch. Thus, FY27E revenue can grow by 16-17% due to enhanced capacity. To support black pipes and crash barriers, galvanizing capacity has been increased from 45,000 MTPA to 63,000 MTPA via Rs. 1.7 cr capex. Thus, company’s total installed capacity has increased to 2.07 lakh MTPA at present.

 

Margins expand in Q1FY27

FY26 revenue stood at Rs. 675 cr with 45% from MS black pipes, 25% from galvanized pipes and 20% from metal beam crash barrier. EBITDA margin stood at 6.2% with net margin at 3.3%. On FY26 net profit of Rs. 23 cr, EPS stood at Rs. 5.6, on equity of Rs.40 cr (face value Rs. 10 each).

Q1FY27 revenue was Rs. 191 cr with PAT of Rs. 8.3 cr and net margin expanding to 4.3% and first quarter EPS at Rs. 2.1. On net worth of Rs. 105 cr, debt will decrease from Rs. 92 cr to Rs. 21 cr, although some future working capital may require additional borrowing.

 

Reasonable Pricing

M cap of Rs. 474 cr and Enterprise Value (EV) of Rs. 496 cr leads to a current year PE multiple of around 12.5x based on FY27E estimated EPS of approximately Rs. 7.5. This pricing is reasonable for expected rise in topline on capacity addition, RoE in high teens going forward, and leverage under check. Peer Hariom Pipe, with Rs. 1,600 cr topline and 4.3% net margin is trading at a PE multiple of 15x, whereas larger peers with stronger margins Sambhv Steel, Hi-tech Pipes are at 20x PE. Thus, Jindal Supreme IPO has left money on the table.