Nuclear energy stock engaged in designing and manufacturing high-precision & heavy-duty mechanical seals widely employed in various nuclear & thermal projects jumped 3 percent in the day’s trade upon signing strategic partnership to expand in Egypt.
Price Action
With a market capitalization of Rs. 488 Crores, the shares of Sealmatic India Limited were trading at Rs. 540 per equity share, down 2.3 percent from its previous day’s close price of Rs. 551.95.
What Happened
Sealmatic India Limited has entered into a strategic partnership with ValueTech Engineering Technologies in Egypt to cater to the varied needs of customers in Egypt and the whole of Africa by offering its global standards of excellence.
It has inked the partnership with the aim to sell, repair, and refurbish Sealmatic mechanical seals in Egypt to serve customers in the oil and gas, petrochemical, power, water, desalination, chemical, and other process industries.
This partnership will help Sealmatic to get introduced amongst the key players in the Egyptian industrial landscape, including specialists in the Oil & Gas, and Power sectors, as well as governmental bodies such as the Ministry of Petroleum and Mineral Resources
Recent Capacity Expansion
Sealmatic India Limited recently announced the inauguration of its new state-of-the-art manufacturing facility at Kaman-Vasai, thereby enhancing its production capabilities. This new facility, spanning an impressive 25,000 sq ft, will enhance 65 percent of its production capacity to the existing production capacity housed at Mira Road.
It currently manufactures Mechanical Seals and their Components at Mira Road Factory with a capacity of 2,100 units per month and, the new facility will manufacture Mechanical Seals and API Vessels, with a capacity of 1,050 components per month.
About the Company
Sealmatic India Limited is engaged in designing and manufacturing high-precision & heavy-duty mechanical seals that are widely employed in various power plant applications both nuclear & thermal.
Sealmatic’s API-compliant mechanical seals offer technically competent, practical solutions that provide significantly greater safety and process reliability in refining technology, petrochemical, oil & gas, and chemical industries.
Clientele Base
Sealmatic India Limited has a strong customer base with well-known players like Reliance Industries Limited, IOCL, BPCL, HPCL, Oil India, BHEL, NTPC, ONGC, JSPL, GAIL, GSECL and many others.
Financials & Ratios
Its revenue from operations grew by 19 percent from Rs. 37.01 Crores in H1FY24 to Rs. 43.93 Crores in H1FY25, accompanied by profits of Rs. 6.59 Crores to Rs. 6.46 Crores.
In terms of return ratios, it has reported a return on equity (ROE) of 10.43 percent and a return on capital employed (ROCE) of 13.78 percent. In terms of liquidity, it has reported a debt-to-equity ratio of 0.06.
Written by: Bharath K.S
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