Shares of a seal manufacturing company hit the 20 percent upper circuit after it reported a staggering 190 percent year-on-year surge in net profit for H2 FY25. The sharp rally reflects strong investor sentiment driven by robust earnings growth and improved operational performance in the mechanical seals segment.
During Monday’s trading session, the shares of Sealmatic India Ltd reached an intraday high of Rs.677.75 per share, hitting the 20 percent upper circuit limit from the previous close of Rs.564.80 per share. The shares later retreated from the peak and closed at Rs.649.85 per share. Over the past five years, the shares have delivered over 150 percent returns.
Financial Performance
Sealmatic India Ltd experienced a significant rise fueled by strong net profit and revenue growth, as reflected in its latest financial results. In H2 FY25, the company reported revenue of Rs.57.89 crore, a solid increase of 65.50 percent compared to Rs.34.98 crore in H2 FY24. Sequentially, revenue grew by 29.21 percent from Rs.44.82 crore in H1 FY25, indicating sustained operational momentum.
Net profit for the half year stood at Rs.9.45 crore in H2 FY25, marking a robust 190 percent year-on-year growth from Rs.3.26 crore in H2 FY24, and a 46.51 percent rise over Rs.6.45 crore reported in H1 FY25.
For the full year FY25, the company posted a total revenue of Rs.102.71 crore, up 40.27 percent from Rs.73.24 crore in FY24. Annual net profit rose to Rs.15.91 crore, reflecting strong growth of 61.52 percent over Rs.9.85 crore in the previous year.
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Global Expansion
The company anticipates a 25 percent year-on-year growth in organic order intake, supporting smoother operations and improved profitability. A new manufacturing unit in Kaman has been integrated with the Mira Road facility, boosting overall production capacity by 65 percent. To strengthen its global presence, the company has formed a joint venture in Abu Dhabi (SealTech LLC), targeting the $60 million mechanical seals market and key clients such as ADNOC. Additionally, it is exploring expansion opportunities in Oman, Kuwait, and Qatar, along with conducting a feasibility study for setting up a service center in Houston, Texas.
For FY26, the company plans to allocate around Rs.4 crores towards regular capital expenditure for plant modernization and business expansion. Additionally, approximately Rs.2 crores will be invested in research and development, particularly for developing future technologies and mechanical seals.
The company has a Return on Capital Employed (ROCE) of 13.78 percent and a Return on Equity (ROE) of 10.43 percent. Its Price-to-Earnings (P/E) ratio stands at 51.96, lower than the industry average of 72.77. Furthermore, the company maintains a current ratio of 4.8, a debt-to-equity ratio of 0.06, and an Earnings Per Share (EPS) of Rs.10.87.
Written by – Siddesh S Raskar
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