Shares of Ratnamani Metals & Tubes hit a fresh record high of Rs 1,645, up 4 per cent on the BSE in the intra-day deals on Friday after the company won orders worth of Rs 140 crore. The stock has surged 31 per cent in the past eight days.
The company, on November 13, said that it has received a domestic order worth Rs 140 crore in carbon steel (CS) division for the supply of CS pipes for oil & gas sector. The order has to be executed between January, 2021 and May, 2021, it said.
In the past three months, the stock has outperformed the market by gaining 42 per cent, as against a 14.8 per cent-rise in the S&P BSE Sensex. In the past six months, it has zoomed 101 per cent compared with 42 per cent rally in the benchmark index.
Ratnamani Metals and Tubes is one of the leading manufacturers of high-quality tubes and pipes in stainless steel/exotic and carbon steel welded pipes in the country.
The steel pipes and tubes industry witnessed headwinds towards the end of the previous financial year owing to Covid-19 induced supply chain disruptions, falling global crude oil prices and deferred projects. However, given the strong government impetus on infrastructure sector and wide enduser application, the industry displays positive outlook in the future.
Presently, the country is highly dependent on imports for its natural gas requirement. As a result, increased government focus on expanding the country's natural gas pipeline, oil and gas transmission and city gas distribution infrastructure will continue to fuel the demand for high quality ERW (Electric Resistance Welded) pipes, say analysts.
The company believes it stand to benefit immensely on the back of consistent demand from the petrochemicals segment and ambitious capacity expansions of refineries along with development of new grass-root refineries. Moreover, the company is looking forward to leverage the opportunities from the upcoming LNG terminals on the western coast of the country.