The share price of this engineering firm surged by 14 percent to an intraday high of Rs 794.95 per share on Tuesday after the company anticipates a potential demand for 22,500 API mechanical seals by 2030, driven by expected growth in India’s Oil and Gas exploration sector, for an investment of $100 billion.
Share price movement: With a market capitalization of Rs 687.80 crores, the shares of Sealmatic India Limited surged around 9 percent at 1:27 pm trading at Rs 767.95 apiece on Tuesday’s market hours. The shares of this company generated an overall return of 53 percent over the past year and 35 percent over the past 6 months.
What happened: According to Sealmatic India Limited’s stock exchange filings, the firm has provided a business update mentioning India’s Oil and Gas exploration sector offering a 100 billion dollar opportunity by the end of 2030 and Sealmatic is anticipating potential demand of 22,500 API mechanical seals based on the growth in the seal industry in India.
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The exchange filings also mention that every 1 billion dollar will demand a new requirement of 225 API pumps and mechanical seals. Further,Sealmatic aims to capture 15 percent of market share by the end of 2030, as per the exchange filings.
The Honourable Oil Minister Shri Hardeep Singh Puri has said” I find it strange that India is so heavily reliant on oil imports despite the abundant geological resources available to us.” The Indian sedimentary basins hold about 651.8 million tonnes of crude oil and 1138.6 billion cubic meters of natural gas, he said.
Mr. Puri said only 10 percent of our sedimentary basin area is under exploration, which will rise to 16 percent by 2024-end after the current bid ends”.Sealmatic India Limited aims to capture 15 percent of this market share by the end of 2030, as per the exchange filings.
Financials: Reviewing the financials of Sealmatic India Limited on a year-on-year basis, the revenues rose by 21 percent from Rs 58.54 crores in FY23 to Rs 71.02 crores in FY24. In the same time frame, the net profits decreased from Rs 10.98 crores to Rs 9.85 crores, demonstrating a 10 percent decrease.
Ratios: In terms of return ratios for the year 2024, it has reported a return on equity (ROE) of 11.22 percent and a return on capital employed (ROCE) of 15.34 percent. It has also reported a net profit margin of 13.87 percent for the same year.
Client base: Sealmatic India Limited caters to well-known clients such as Cipla, NTPC, ONGC, Shell, Indian Oil, Reliance Industries Limited, ESSAR, Nayara energy etc.
Revenue Bifurcation: As for the revenue bifurcation in FY2023-24, 60.91 percent of the revenues were made from Exports, and the rest 39.09 percent came from the domestic market.
Product Portfolio: The product portfolio of Sealmatic India Limited includes Standard Cartridge Seals, Mechanical Seals as per API 682, Split Seals, Engineered Seals for Demanding Applications, Standard Mechanical Seals for Pumps & Compressors, GasLubricated Seals for Pumps & Agitators, Mechanical Seals for Agitators, Mixers, Kneaders & Reactors, Supply Systems & Components.
Shareholding Pattern: As of March 2024, Sealmatic India Limited’s shareholding pattern stood at 72.38 percent for promoters, 24.70 percent for the public, and 2.92 percent for domestic institutional investors.
About the Company: Incorporated in 2009, Sealmatic India Limited manufactures mechanical seals, seal supply systems, pumps, valves, motors, and high-precision mechanical engineering spares and assemblies.
Sealmatic designs and manufactures API 682, high precision & heavy-duty mechanical seals that are widely employed for various hydrocarbon applications, as well as chemical/ petrochemical and many other severe applications in the O & G industries globally.
Written By Zahal
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