Vraj Iron and Steel Limited manufactures Sponge Iron, M.S. Billets, and TMT bars under the brand Vraj. The company runs two manufacturing plants in Raipur and Bilaspur, Chhattisgarh, covering 52.93 acres. As of March 31, 2023, the total installed capacity of the manufacturing plants was 231,600 tons per year, including intermediate and final products.

The company currently has a production capacity of 57,600 TPA of MS Billets, which its rolling mills can use to manufacture TMT Bars with a production capacity of 54,000 TPA. The company’s product portfolio comprises offerings such as Sponge Irons, TMT Bars, MS Billets, and by-products Dolochar, Pellets, and Pig Iron, which cater to a mix of industrial customers and end-users.

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*Market cap @upper band 

• Integrated and well-established manufacturing setup.
• Manufacturing plants  are  strategically  located,  supported  by  robust  architecture,  leading  to  cost efficiencies and a stable supply chain.
• Diversified product mix with strong focus on value added products.
• Experienced Promoters, Board and management team.

• Funding for Capital Expenditure towards the “Expansion Project” at Bilaspur Plant:
• Repayment or prepayment of borrowings from HDFC Bank obtained by the company for the capital expenditure towards the “Expansion Project” at Bilaspur Plant; and
• Capital expenditure towards the “Expansion Project” at Bilaspur Plant.
• General Corporate Purposes.

The company is engaged in sponge iron, TM Bars, M S Billets manufacturing and marketing. With its captive power plants, it plays with efficient cost management. Based on FY24 annualized earnings, the issue appears reasonably priced. Investors may subscribe it up for medium to long term.