Recent Price Performance and Market Context
On 20 Jan 2026, Vibhor Steel Tubes Ltd’s stock price declined by 6.46%, a stark contrast to the Sensex’s modest fall of 0.54% on the same day. Over the past week, the stock has dropped 9.49%, compared to a 1.00% decline in the Sensex. The downward trend extends over longer periods, with a 1-month loss of 11.15% versus the Sensex’s 2.52% decrease, and a 3-month fall of 19.27% against the Sensex’s 1.86% decline.
Most notably, the stock has delivered a negative return of 42.07% over the last year, while the Sensex has gained 7.42% in the same period. Year-to-date performance also reflects a 10.65% drop for Vibhor Steel Tubes Ltd, compared to a 2.85% decline in the Sensex. The stock’s three- and five-year returns remain flat at 0.00%, significantly lagging the Sensex’s 36.57% and 66.28% gains respectively. Over a decade, the stock has not recorded any appreciable growth, contrasting sharply with the Sensex’s 244.08% rise.
Vibhor Steel Tubes Ltd is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling persistent downward momentum. The stock’s performance is inline with the Iron & Steel Products sector’s recent trends but remains markedly weaker in comparison to broader market benchmarks.
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Financial Metrics and Credit Profile
Vibhor Steel Tubes Ltd’s financial indicators reflect ongoing pressures. The company’s Return on Capital Employed (ROCE) stands at 7.70%, a figure that is considered weak for the Iron & Steel Products sector. This metric highlights limited efficiency in generating returns from capital investments over the long term.
The company’s ability to service debt is constrained, with a Debt to EBITDA ratio of 4.39 times, indicating a relatively high leverage position. Interest expenses have increased substantially, with the latest six-month interest cost rising by 38.73% to ₹7.45 crores. This escalation in interest burden has contributed to a low operating profit to interest coverage ratio of 2.40 times in the most recent quarter, signalling tighter financial flexibility.
Profitability has also deteriorated, with the latest quarterly Profit After Tax (PAT) reported at ₹1.42 crores, a decline of 52.3% compared to the previous four-quarter average. Over the past year, profits have fallen by 34%, compounding the challenges faced by the company.
Comparative Performance and Market Capitalisation
Despite the weak fundamentals, Vibhor Steel Tubes Ltd maintains an attractive valuation on certain metrics, with an Enterprise Value to Capital Employed ratio of 1.1. However, this valuation does not offset the broader concerns regarding profitability and leverage.
The company’s market capitalisation grade is rated 4, reflecting its micro-cap status within the Iron & Steel Products sector. The Mojo Score assigned to the stock is 20.0, categorised as a Strong Sell, an upgrade in severity from the previous Sell grade as of 1 Sep 2025. This grading underscores the deteriorated outlook based on comprehensive financial and market data.
Promoters remain the majority shareholders, maintaining control over the company’s strategic direction amid the current market conditions.
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Long-Term Trends and Sector Comparison
Over the last three years, Vibhor Steel Tubes Ltd has failed to generate any positive returns, remaining flat at 0.00%, while the Sensex has appreciated by 36.57%. The five- and ten-year returns also remain at zero, contrasting sharply with the Sensex’s robust gains of 66.28% and 244.08% respectively. This underperformance extends to the company’s relative position within the BSE500 index, where it has lagged over one-year and three-month periods.
The stock’s recent performance is in line with the broader Iron & Steel Products sector’s trends, but the magnitude of decline and valuation metrics highlight a more pronounced weakness specific to Vibhor Steel Tubes Ltd.
Trading below all major moving averages further emphasises the stock’s subdued momentum and the absence of upward price catalysts in the near term.
Summary of Key Data Points
• Latest day change: -6.46%
• Five-day consecutive decline with cumulative returns of -5.79%
• One-year return: -42.07% versus Sensex +7.42%
• ROCE: 7.70%
• Debt to EBITDA ratio: 4.39 times
• Interest expense growth (latest six months): +38.73% to ₹7.45 crores
• Operating profit to interest coverage: 2.40 times
• PAT (latest quarter): ₹1.42 crores, down 52.3% versus previous four-quarter average
• Mojo Score: 20.0 (Strong Sell)
• Market Cap Grade: 4 (micro-cap)
• Promoters hold majority shareholding
The data collectively illustrates a company facing significant headwinds, reflected in its all-time low stock price and deteriorated financial metrics. The stock’s performance relative to market benchmarks and sector peers highlights the challenges embedded in its current valuation and operational results.
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