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Vaswani Industries Overview

1. Business Overview

Vaswani Industries Ltd. is an India-based company primarily engaged in the manufacturing of various steel products. Its core business involves producing Sponge Iron (Direct Reduced Iron - DRI), which is a crucial raw material for steelmaking. Further, the company processes this into M.S. (Mild Steel) Billets and then into finished steel products such as TMT (Thermo-Mechanically Treated) Bars and Structural Steel (angles, channels). The company also operates a captive power plant utilizing waste heat recovery, which aids in reducing energy costs for its manufacturing operations. It makes money by selling these intermediate products (Sponge Iron, Billets) to other manufacturers and finished steel products (TMT Bars, Structural Steel) to the construction, infrastructure, and other industrial sectors, primarily in its regional market.

2. Key Segments / Revenue Mix

Vaswani Industries primarily operates within the Steel segment. While specific revenue contribution breakdowns are not publicly detailed, its main revenue streams are derived from:

Sponge Iron: Production and sale of Sponge Iron to other steel units.

Finished Steel Products: Manufacturing and sale of M.S. Billets, TMT Bars, and Structural Steel for construction and industrial applications.

Its captive power generation largely supports internal consumption, contributing to cost savings rather than direct external revenue.

3. Industry & Positioning

The company operates in the Indian steel industry, which is large, capital-intensive, and cyclical. The industry is characterized by significant demand drivers from infrastructure development, construction, automotive, and manufacturing sectors. It features both large, integrated players (e.g., Tata Steel, JSW Steel) and numerous smaller, secondary steel producers. Vaswani Industries Ltd. is positioned as a secondary steel producer with an integrated manufacturing process from sponge iron to finished products. It likely serves a regional market (e.g., Chhattisgarh and surrounding areas), competing with both larger national players and other local manufacturers on price and distribution.

4. Competitive Advantage (Moat)

Vaswani Industries' competitive advantages, while limited compared to large diversified players, include:

Cost Efficiency (Partial): Its integrated manufacturing process (sponge iron to finished products) allows for better control over the value chain. The captive waste heat recovery based power plant provides a degree of energy cost stability and independence from grid power price fluctuations, which is significant for an energy-intensive industry.

Location: Proximity to raw material sources (iron ore, coal) in central India can offer logistical cost advantages.

Regional Presence: Established relationships and distribution network within its operating region.

However, it generally lacks significant scale advantages, strong brand recognition on a national level, or high switching costs typical of commodity product manufacturers.

5. Growth Drivers

Indian Infrastructure Spending: Continuous government focus on infrastructure development (roads, railways, ports, housing) is a primary driver for steel demand.

Construction & Real Estate Growth: Increasing urbanization and growth in housing and commercial real estate contribute to demand for TMT bars and structural steel.

Manufacturing Sector Expansion: Growth in manufacturing, including automotive and capital goods, indirectly fuels steel consumption.

Operational Efficiency: Continued optimization of its integrated operations and captive power generation can lead to improved margins.

Potential Capacity Expansion: Any future plans for increasing production capacity for sponge iron or finished steel products.

6. Risks

Commodity Price Volatility: Fluctuations in steel product prices (TMT bars, billets, sponge iron) directly impact profitability due to the commodity nature of its products.

Raw Material Price Volatility: Dependency on external sources for iron ore and coal makes it vulnerable to price increases of these key inputs.

Intense Competition: The Indian steel market is highly fragmented and competitive, with numerous players vying for market share, which can exert pressure on pricing and margins.

Capital Intensity: Steel manufacturing requires significant capital expenditure for maintenance and expansion, which can strain finances.

Regulatory & Environmental Risks: Strict environmental regulations, mining policies, and energy norms can increase operational costs and compliance burdens.

Economic Downturns: A slowdown in the Indian economy, particularly in construction and infrastructure, would reduce demand for steel.

Financial Leverage: High debt levels (if any) could pose a risk during periods of high interest rates or reduced cash flows.

7. Management & Ownership

Vaswani Industries Ltd. is a promoter-driven company, with the Vaswani family (e.g., Mr. Baldevbhai Vaswani, Mr. Rajkumar Vaswani) having significant control and involvement in the management. Promoters typically hold a substantial ownership stake, aligning their interests with the company's long-term performance. Details regarding independent director composition or specific management quality assessments would require in-depth analysis of their annual reports and corporate governance practices.

8. Outlook

Vaswani Industries Ltd. operates in a crucial sector for India's growth story. The bull case hinges on India's sustained infrastructure and construction boom, which should fuel demand for its steel products. Its integrated operations and captive power plant offer some degree of cost stability in an energy-intensive industry. If it can maintain operational efficiencies and potentially expand capacity strategically, it stands to benefit from the overall economic growth. However, the bear case highlights the inherent risks of a commodity business: extreme sensitivity to volatile steel and raw material prices, intense competition from both larger and smaller players, and the capital-intensive nature of the industry. Any economic slowdown or adverse regulatory changes could significantly impact its financial performance. The company's smaller scale means it may have less pricing power and market reach compared to industry giants, making it more susceptible to market downturns.

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Vaswani Industries Key Financials

Market Cap ₹180 Cr.

Stock P/E 20.9

P/B 1.3

Current Price ₹54.7

Book Value ₹ 41.4

Face Value 10

52W High ₹70.1

Dividend Yield 0%

52W Low ₹ 42

Vaswani Industries Share Price

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Volume
Price

Vaswani Industries Quarterly Price

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Vaswani Industries Peer Comparison

Vaswani Industries Quarterly Results

#(Fig in Cr.) Mar 2023 Sep 2023 Dec 2023 Mar 2024 Sep 2024 Dec 2024 Mar 2025 Jun 2025 Sep 2025 Dec 2025
Net Sales 111 87 118 90 102 102 115 114 85 124
Other Income 0 0 0 1 0 0 2 0 0 0
Total Income 112 88 119 91 102 103 117 115 85 124
Total Expenditure 106 83 112 84 96 97 106 105 79 121
Operating Profit 5 4 6 7 6 6 11 10 6 4
Interest 2 2 2 2 1 2 4 3 3 4
Depreciation 1 1 1 1 1 1 1 1 1 2
Exceptional Income / Expenses 0 0 0 0 0 0 -4 0 0 0
Profit Before Tax 3 1 3 5 4 3 3 5 2 -3
Provision for Tax 1 0 1 2 2 1 1 -0 0 5
Profit After Tax 1 1 2 3 2 2 2 5 1 -8
Adjustments 0 0 0 0 0 0 0 0 0 0
Profit After Adjustments 1 1 2 3 2 2 2 5 1 -8
Adjusted Earnings Per Share 0.4 0.3 0.8 1 0.8 0.6 0.6 1.7 0.4 -2.4

Vaswani Industries Profit & Loss

#(Fig in Cr.) Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022 Mar 2023 Mar 2024 Mar 2025 TTM
Net Sales 255 238 256 237 319 352 314 374 392 389 412 438
Other Income 1 1 0 1 1 2 0 1 2 2 2 2
Total Income 255 238 256 238 320 355 315 375 394 391 414 441
Total Expenditure 237 222 239 221 302 339 296 355 371 367 385 411
Operating Profit 18 17 17 17 18 16 19 20 23 24 29 31
Interest 11 9 9 9 10 10 9 9 9 8 8 14
Depreciation 6 6 6 5 5 5 4 4 4 4 4 5
Exceptional Income / Expenses 0 0 0 0 0 0 0 0 0 0 -4 -4
Profit Before Tax 1 1 2 3 3 0 5 7 11 12 13 7
Provision for Tax -0 0 -0 -2 2 3 1 3 5 3 5 6
Profit After Tax 1 1 2 5 1 -3 4 4 6 9 9 0
Adjustments 0 0 0 0 0 0 0 0 0 0 0 0
Profit After Adjustments 1 1 2 5 1 -3 4 4 6 9 9 0
Adjusted Earnings Per Share 0.4 0.4 0.6 1.5 0.4 -0.8 1.4 1.5 2 3 2.7 0.3

Growth Rates

# 1 Year 3 Year 5 Year 10 Year
Sales CAGR 6% 3% 3% 5%
Operating Profit CAGR 21% 13% 13% 5%
PAT CAGR 0% 31% 0% 25%
# 1 Year 3 Year 5 Year 10 Year
Share Price CAGR 22% 39% 32% 23%
ROE Average 7% 7% 6% 4%
ROCE Average 10% 12% 12% 10%

Vaswani Industries Balance Sheet

#(Fig in Cr.) Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022 Mar 2023 Mar 2024 Mar 2025
Shareholder's Funds 83 85 86 87 93 98 102 107 113 122 137
Minority's Interest 0 0 0 0 0 0 0 0 0 0 0
Borrowings 8 3 4 7 11 9 7 15 10 15 109
Other Non-Current Liabilities 3 3 3 1 3 6 7 8 10 10 12
Total Current Liabilities 68 71 67 76 91 83 79 87 69 43 103
Total Liabilities 161 163 160 171 198 196 197 217 201 189 362
Fixed Assets 66 67 62 57 54 59 56 54 51 52 112
Other Non-Current Assets 14 15 23 21 26 23 17 36 24 24 92
Total Current Assets 80 79 75 92 118 114 124 127 126 113 158
Total Assets 161 163 160 171 198 196 197 217 201 189 362

Vaswani Industries Cash Flow

#(Fig in Cr.) Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022 Mar 2023 Mar 2024 Mar 2025
Opening Cash & Cash Equivalents 4 4 5 -0 -0 0 1 8 8 12 23
Cash Flow from Operating Activities 24 18 4 4 9 10 29 -0 30 31 34
Cash Flow from Investing Activities -2 -8 -0 -1 -2 -1 -1 -2 -1 -9 -134
Cash Flow from Financing Activities -22 -10 -9 -3 -7 -8 -21 2 -26 -11 122
Net Cash Inflow / Outflow 1 1 -5 -0 1 1 7 1 4 11 22
Closing Cash & Cash Equivalent 4 5 -0 -0 0 1 8 8 12 23 45

Vaswani Industries Ratios

# Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022 Mar 2023 Mar 2024 Mar 2025
Earnings Per Share (Rs) 0.4 0.4 0.59 1.5 0.39 -0.84 1.35 1.47 2 3.01 2.74
CEPS(Rs) 2.66 2.63 2.5 3.3 2.12 0.95 2.8 2.69 3.22 4.26 4.15
DPS(Rs) 0 0 0 0 0 0 0 0 0 0 0
Book NAV/Share(Rs) 28.39 28.91 28.77 28.84 30.86 30.05 31.57 33.06 35 38 41.42
Core EBITDA Margin(%) 6.27 6.07 5.77 6.6 5.48 3.89 5.86 5.07 5.44 5.68 6.49
EBIT Margin(%) 4.15 3.94 3.89 4.63 4.02 2.96 4.63 4.3 4.92 5.15 5.14
Pre Tax Margin(%) 0.39 0.52 0.59 1.04 1.03 0.05 1.64 1.93 2.74 3.17 3.2
PAT Margin (%) 0.41 0.44 0.63 1.85 0.36 -0.72 1.29 1.18 1.53 2.32 2.09
Cash Profit Margin (%) 2.72 2.89 2.68 4.07 1.99 0.81 2.67 2.16 2.47 3.29 3.16
ROA(%) 0.69 0.71 1.1 2.73 0.63 -1.28 2.07 2.14 2.88 4.63 3.12
ROE(%) 1.4 1.41 2.09 5.22 1.3 -2.76 4.39 4.56 5.89 8.25 7.06
ROCE(%) 8.57 7.97 8.45 8.56 9.23 7.28 10.41 11.16 13.18 13.93 9.77
Receivable days 38.2 35.4 31.4 50.42 47.91 50.2 62.56 50.59 46.21 31.61 11.78
Inventory Days 38.14 44.96 44.93 47.4 46.99 45.67 47.77 40.99 40.97 44.6 49.69
Payable days 49.95 53.67 48.41 55.89 50.91 43.99 47.57 44.67 43.81 32.79 34.08
PER(x) 7.02 17.32 15.99 10.38 25.83 0 7.05 13.43 9.96 10.38 12.74
Price/Book(x) 0.1 0.24 0.33 0.54 0.32 0.1 0.3 0.6 0.57 0.82 0.84
Dividend Yield(%) 0 0 0 0 0 0 0 0 0 0 0
EV/Net Sales(x) 0.2 0.25 0.28 0.4 0.25 0.17 0.2 0.28 0.21 0.27 0.54
EV/Core EBITDA(x) 2.81 3.6 4.24 5.7 4.46 3.86 3.31 5.26 3.65 4.37 7.59
Net Sales Growth(%) 12.56 -6.79 7.58 -7.12 34.47 10.44 -10.81 19.06 4.7 -0.64 5.73
EBIT Growth(%) -0.14 -11.6 5.99 3.31 13.91 -18.65 39.5 10.63 19.89 3.81 5.62
PAT Growth(%) 3813.61 0.34 53.3 154.7 -74.25 -317.27 261.09 8.89 35.92 50.27 -4.74
EPS Growth(%) 3798.06 0.35 46.42 154.72 -74.26 -317.3 261.08 8.89 35.92 50.26 -8.84
Debt/Equity(x) 0.58 0.55 0.49 0.55 0.55 0.59 0.44 0.53 0.34 0.29 1.2
Current Ratio(x) 1.17 1.12 1.12 1.22 1.3 1.37 1.56 1.46 1.82 2.63 1.53
Quick Ratio(x) 0.77 0.6 0.64 0.81 0.74 0.92 0.99 1.02 1.12 1.55 0.96
Interest Cover(x) 1.1 1.15 1.18 1.29 1.35 1.02 1.55 1.81 2.26 2.6 2.65
Total Debt/Mcap(x) 5.85 2.26 1.49 1.02 1.69 5.95 1.45 0.89 0.6 0.35 1.43

Vaswani Industries Shareholding Pattern

# Dec 2023 Mar 2024 Jun 2024 Sep 2024 Dec 2024 Mar 2025 Jun 2025 Sep 2025 Dec 2025 Mar 2026
Promoter 58.33 58.33 58.33 58.33 60.12 60.12 60.12 62.06 62.06 62.06
FII 0 0.01 0 0.15 0 0.12 0.01 0.02 0.11 0
DII 0 0 0 0 0 0 0 0 0 0
Public 41.67 41.66 41.66 41.51 39.88 39.76 39.87 37.92 37.83 37.94
Others 0 0 0 0 0 0 0 0 0 0
Total 100 100 100 100 100 100 100 100 100 100

Vaswani Industries News

Vaswani Industries Pros & Cons

Pros

Cons

  • Company has a low return on equity of 7% over the last 3 years.
  • Debtor days have increased from 32.79 to 34.08days.
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