Sarthak Metals Ltd
NSE:SMLT
Sarthak Metals Ltd
Sarthak Metals Ltd. engages in the provision of modern metallurgical solutions for fine tuning of steel. The company is headquartered in Bhilai, Chhattisgarh. The company went IPO on 2017-03-27. The firm is engaged in manufacturing of variety of cored wires, aluminum flipping coils, and wire feeder machines. Its cored wire is used in performing various functions like steel refining, alloy addition, deoxidation, desulphurization, de-nitrification, and others. The aluminum flipping coils are used by the steel manufacturing plant for de-oxidizing of molten steel as alloying element for manufacturing special steel. Its wire feeder machine is designed to inject cored wires to add deoxidant, modifiers and alloying elements into molten steel for metallurgical process control. The company supplies customized wire feeder machine with all required accessories. The company offers two strand and four strand machines that are known for drawing wires of 5 to 15 mm diameter at a speed from 0 to 300 meters per minute. The firm has two manufacturing units located at Bhilai and Raipur
Sarthak Metals Ltd. engages in the provision of modern metallurgical solutions for fine tuning of steel. The company is headquartered in Bhilai, Chhattisgarh. The company went IPO on 2017-03-27. The firm is engaged in manufacturing of variety of cored wires, aluminum flipping coils, and wire feeder machines. Its cored wire is used in performing various functions like steel refining, alloy addition, deoxidation, desulphurization, de-nitrification, and others. The aluminum flipping coils are used by the steel manufacturing plant for de-oxidizing of molten steel as alloying element for manufacturing special steel. Its wire feeder machine is designed to inject cored wires to add deoxidant, modifiers and alloying elements into molten steel for metallurgical process control. The company supplies customized wire feeder machine with all required accessories. The company offers two strand and four strand machines that are known for drawing wires of 5 to 15 mm diameter at a speed from 0 to 300 meters per minute. The firm has two manufacturing units located at Bhilai and Raipur
Steel Headwinds: Sarthak Metals faced a 14% YoY volume decline in its core cored wire business in Q2, mainly due to weak steel prices, subdued sector demand, and heightened competition.
Diversification: The company’s strategy to expand beyond its traditional core is progressing, with welding and biotech divisions gaining traction as new growth pillars.
Welding Success: The welding business showed robust growth, reaching over 100 tonnes monthly and expanding its dealer network, supported by BIS and RDSO approvals.
Biotech Momentum: The biotech division is nearing revenue launch, with active discussions underway with ethanol distilleries and large market potential driven by India’s push for biofuels.
Disciplined Financials: Sarthak Metals remains virtually debt-free, maintaining a strong balance sheet and investing in new areas from a position of financial strength.
Margin Outlook: EBITDA margins in the welding division are expected to improve to 9–10% as the brand becomes established; biotech is expected to deliver healthy double-digit margins.
Sustainability Focus: The company is committed to going green, highlighting recycled aluminum use and a solar power plant as early steps.
