A One Steels India Limited – Valuation Insights (as of current market price ₹385/share)

About the Company: A One Steels India Limited (ASIPL), established in Southern India, is a backward-integrated steel manufacturer with six plants across Karnataka and Andhra Pradesh. The company produces a wide range of steel products including TMT bars, pipes, coils, and sponge iron. ASIPL also utilizes 84–87% renewable energy in its operations and boasts a robust network of over 1,200 retail outlets. The company is now heading towards a ₹650 crore IPO (₹600 crore fresh issue + ₹50 crore OFS), aiming to fund expansion, green energy initiatives, and debt reduction. The increasing reliance on clean energy and regional dominance in Southern India positions ASIPL as a key player to watch in the mid-tier steel segment. 1. Total Shares Outstanding (Latest) As per latest disclosures: 6,84,67,532 equity shares(Source: DRHP) 2. Current Market Price (Unlisted) ₹385 per share (as per unlisted market rates) 3. Estimated Current Valuation Valuation = Total Shares × Price per Share= 6,84,67,532 × ₹385= ₹2,636 crore A) FY24 Financial Performance Revenue: ₹3,834 Cr PAT: ₹38 Cr Implied P/E Ratio: ₹2,636 Cr ÷ ₹38.91 Cr = ~67.75x EBITDA Margin: 5.18% PAT Margin: 1.01% ROCE: 10.45% ROE: 9.42% Debt-to-Equity Ratio: 2.34 B) FY25 Projections (Based on 3M FY25 Annualized) Revenue (Annualized): ₹3,818 Cr PAT (Annualized): ₹64 Cr Forward P/E Ratio: ~40.73x C) Valuation Growth Snapshot Date Type Amount Raised Valuation Implied Price/Share Dec 2015 Rights Issue ₹2 crore ₹9 crore ₹100 Mar 2021 Rights Issue ₹27.52 crore ₹894 crore ₹688 Jun–Jul 2024 Private Placement ₹24.72 crore ₹1,711 crore ₹250.00 Current (2025) Unlisted Market — ₹2,636 crore ₹385.00 Peer Comparison (FY24–25) Company Revenue (₹ Cr) EBITDA Margin PAT Margin ROCE D/E Ratio Market Cap (₹ Cr) P/E A One Steels India Ltd (FY24) 3,834 5.18% 1.01% 10.45% 2.34 2,636 67.75x Jai Balaji Industries (FY25) 6,351 ~13.6% 8.78% 36.10% 0.26 10,336 18.6x Shyam Metallics & Energy (FY25) 15,945 12.30% 6.00% 12.00% 0.07 27,342 29.7x MSP Steel & Power (FY25) 2,844 4.61% -0.98% 6.23% 0.27 1,974 Loss Conclusion At ₹385 per share, A One Steels India Limited commands a valuation of ₹2,636 crore in the unlisted market, which appears relatively high for a commodity-based business. The company is trading at a trailing P/E of ~67.75x based on FY24 earnings and a forward P/E of ~40.7x based on FY25 projections. While PAT margins remain thin, ASIPL’s consistent revenue traction, proactive adoption of renewable energy, and its regional dominance present a case for long-term potential. However, elevated leverage and premium valuation compared to listed peers warrant investor caution. With the upcoming IPO, investor interest will hinge on pricing and growth execution. Disclaimer: UnlistedZone is not a SEBI-registered Research Analyst or Investment Advisor. All information shared is for educational and informational purposes only. Investors are advised to do their own due diligence or consult a SEBI-registered advisor before making any investment decisions.