WEBSITE BSE:533576 NSE: VASWANI IND Inc. Year: 2003 Industry: Steel/Sponge Iron/Pig Iron My Bucket: Add Stock
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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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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
Price goes above X
Price falls below X
PE goes above X
PE falls below X
₹ | |
| #(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 |
| #(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 |
| # | 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% |
| #(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 |
| #(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 |
| # | 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 |
| # | 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 |
| # | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|
| Promoter | 1.75 | 1.75 | 1.75 | 1.75 | 1.88 | 1.88 | 1.88 | 2.04 | 2.04 | 2.04 |
| FII | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| DII | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Public | 1.25 | 1.25 | 1.25 | 1.25 | 1.25 | 1.25 | 1.25 | 1.25 | 1.25 | 1.25 |
| Others | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | 3 | 3 | 3 | 3 | 3.13 | 3.13 | 3.13 | 3.29 | 3.29 | 3.29 |
* The pros and cons are machine generated.
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