Ratnamani Metals gains 4% on Rs 98 crore order win from oil & gas sector

The recent order win would aid the company to register 25 per cent CAGR revenue growth in FY21-23E, brokerage ICICI Securities said

Shares of Ratnamani Metals & Tubes (RMTL) hit a record high of Rs 2,299, up 4.5 per cent on the BSE in Friday’s intra-day trade after the company announced it has received an order worth Rs 98 crore (excluding GST) for the supply of carbon steel pipes from the oil & gas sector. The order is expected to be executed in 5-12 months.

Earlier this month, the company received various orders aggregating to Rs 144 crore (excluding GST) for the supply of stainless steel pipes and carbon steel pipes from the oil & gas sector which are to be executed in the next three to eight months.

RMTL in the financial year 2020-21 (FY21) annual report said, the outlook looks promising, with opportunities across oil & gas, cross country pipelines and city gas distribution projects announced by the government as well as several nations globally. Besides, chemicals and pharmaceuticals also throw upon a strong growth potential.

With the second wave of the pandemic now plateauing out, we are expecting some movement in the water transportation segment through the ‘Har Ghar Nal Se Jal’ initiative. On this premise, we see a tremendous opportunity for the industry, and we believe we are well-positioned to ‘ride the wave’, the management said.

According to ICICI Securities, the recent order win augurs well for RMTL. "The company is one of the leading pipe suppliers to the oil & gas sector and firmly placed to cater rising demand. The recent order win would aid the company to register 25 per cent CAGR revenue growth in FY21-23E. The stock is currently trading at 23x FY23E EPS," the brokerage firm said.

At 09:30 am, the stock was up less than 1 per cent at Rs 2,212 on the BSE, as compared to a 0.38 per cent rise in the S&P BSE Sensex. A combined 135,000 equity shares had changed hands on the counter on the NSE and BSE.