About Shri Hare-Krishna Sponge Iron Limited
Shri Hare-Krishna Sponge Iron Limited, incorporated in May 2003, is a Chhattisgarh-based company engaged in the manufacturing and sale of sponge iron, a crucial raw material in steel production. The company's production facility is strategically located in Siltara, Raipur, spread across 13.45 acres of industrial land, with an annual installed capacity of 30,000 metric tonnes.
The company holds multiple international certifications:
ISO 9001:2015 (Quality Management)
ISO 14001:2015 (Environmental Management)
ISO 45001:2018 (Occupational Health & Safety)
Its customer base spans across Maharashtra, Madhya Pradesh, and Chhattisgarh, supported by a workforce of 92 full-time employees as of April 2025.
Why To Invest in Shri Hare-Krishna Sponge Iron Limited
Expansion through Captive Power Plant: A significant portion of IPO proceeds will be utilized to set up a captive power plant, which is expected to reduce energy costs and improve operational efficiency.
Certified Manufacturing Facility: With internationally recognized ISO certifications, the company ensures consistent quality, environmental care, and worker safety.
Strong Financial Position: Despite a slight drop in FY25 revenue, the company has maintained a double-digit PAT margin (11.43%), healthy ROE (13.33%), and a low debt-to-equity ratio (0.15), showcasing financial stability.
Steady Market Demand: With steel consumption on the rise in India, demand for sponge iron is expected to remain strong.
Valuation Comfort: At a P/E ratio of 9.06 pre-issue and a price-to-book value of 1.29, the IPO appears fairly valued compared to its industry peers.
| Period Ended | 31 Mar 2025 | 31 Mar 2024 | 31 Mar 2023 |
|---|---|---|---|
| Assets | 93.16 | 75.74 | 58.58 |
| Revenue | 83.60 | 84.93 | 95.25 |
| Profit After Tax | 9.20 | 10.17 | 10.53 |
| EBITDA | 10.78 | 12.11 | 13.97 |
| Net Worth | 73.59 | 64.39 | 54.22 |
| Reserves and Surplus | 59.47 | 50.27 | 40.10 |
| Total Borrowing | 11.39 | 7.24 | 0.75 |
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