One of the small-cap stocks engaged in the manufacturing of stainless steel pipes and tubes and carbon steel pipes. The stock has jumped 3.55 percent after purchasing stakes by SBI and Tata Mutual Fund worth Rs. 261.8 crore
Stock Price Movement:
With a market capitalization of Rs. 23,291.92 crores, the shares of Ratnamani Metals & Tubes Limited were opened at Rs. 3,400.45 per equity share, rising to an intraday high of nearly around 3.55 percent from its previous day’s close price of Rs. 3.326.95. The stock is currently trading at Rs 3,323.05 per equity share.
What Happened:
In a recent bulk deal involving Ratnamani Metals & Tubes Limited, SBI Mutual Fund acquired a 1.07% stake for Rs. 251.8 crores at an average price of Rs. 3,335 per share, while Tata Mutual Fund purchased a smaller 0.04% stake valued at Rs. 10 crores.
On the other hand, Nalanda India Fund sold a 1.1% stake in the company at the same price, amounting to Rs. 261.8 crore, marking a significant reshuffle in the company’s shareholding.
Future Outlook:
Ratnamani Metals & Tubes Limited plans to invest $40 million in a cold finishing project outside India, focusing on specialized, high-value products. The company anticipates stable domestic demand and a recovery in Europe and the US markets.
Additionally, Ratnamani is set to launch commercial supplies for basic hangers and support systems in its spooling business, targeting Rs. 150 crores in revenue for the current year.
Capex and Expansion Plans:
Ratnamani Metals & Tubes Limited is investing in ongoing CAPEX, including a spiral plant in Orissa and expanding its stainless steel cold finishing capacity. The company has also approved new projects for a greenfield plant in the Middle East and an auto parts manufacturing facility in RTL, with a combined CAPEX of Rs. 550-600 crores. These projects are expected to be commissioned within 18 to 24 months.
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Joint Ventures and New Products:
The joint venture with Technoenergy is driving growth in the spooling business, backed by an order backlog of Rs. 650 crores. Spooling products are projected to generate Rs. 400-500 crores in revenue over the next two years.
With a current seamless product capacity of 30,000 tons, plans are underway to expand cold finishing capacity, further enhancing production capabilities.
Recent quarter results and ratios:
Ratnamani Metals & Tubes Limited’s revenue has decreased from Rs. 1,131 crore in Q2 FY24 to Rs. 971 crore in Q2 FY25, which has down by 14.15 percent. The net profit of Ratnamani Metals & Tubes Limited has dropped by 39.63 percent, from Rs. 164 crore in Q2 FY24 to Rs. 99 crore in Q2 FY25.
Ratnamani Metals & Tubes Limited’s revenue and net profit have grown at a CAGR of 12.92 percent and 19.83 percent, respectively, over the last five years.
In terms of return ratios, the company’s ROCE and ROE should be 27.7 percent and 21.6 percent, respectively. The debt-to-equity ratio of the company is to be 0.08x, which shows the company is almost debt-free. Ratnamani Metals & Tubes Limited’s EPS is to be Rs. 75.7.
Company Overview:
Ratnamani Metals and Tubes Limited, based in India, specializes in manufacturing stainless steel and welded pipes and tubes. It offers critical tubing and piping solutions to industries such as oil and gas, petrochemicals, defense, aerospace, thermal and solar power, and more.
The company’s manufacturing facilities are located in Gujarat, producing a wide range of seamless and welded pipes in various materials like nickel alloy, stainless steel, and carbon steel.
Written By – Nikhil Naik
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