Company Background

Scoda Tubes Limited is a precision stainless steel and duplex tube manufacturer serving the oil & gas, chemical processing, heat exchangers, and power sector. The company operates an automated manufacturing facility in Gujarat with strict metallurgical quality standards and international certification compliance.

Plant Visit Observations - June 2026

CBA conducted a detailed plant inspection at Scoda's Ahmedabad facility in June 2026. Observations: (1) Highly automated production lines with minimal manual intervention in critical forming stages. (2) In-house NDT laboratory ensuring product quality. (3) Export-ready packaging for 40+ containers per month. (4) New cold-rolling mill under installation for precision small-bore tubing.

Investment Highlights

1. 65%+ revenue from exports to Middle East, Europe, and North America with strong reorder rates.

2. High-value duplex and super-duplex grades command significant premium over standard SS grades, supporting superior margins.

3. New cold-rolling capacity is expected to add 25% to revenue potential in FY28.

CBA Research View - Plant Visit Report June 2026

Our plant visit reinforced confidence in Scoda Tubes' operational capabilities and management execution. The company's focus on specialised alloy grades, export market diversification, and ongoing capacity additions positions it as a compelling long-term compounding opportunity in the industrial metals space.

Key Risks

Risks include nickel and chromium price volatility, global oil & gas capex cycle dependency, customer concentration risk, and execution risk on capacity expansion.