This Jindal group company, which is into manufacturing of seamless pipes & tubes, ERW pipes, renewable power generation and rig operations, surged 2 percent in early trade after receiving an order worth ~Rs. 298 crore from a Domestic Entity.
Price Movement
Maharashtra Seamless Limited‘s stock on Monday’s session touched a day’s high of Rs. 676.70, which is 2.40 percent. The stock reiterated from the day’s high and was trading at Rs. 657.30, which is 0.53 percent lower than the previous closing price of Rs. 660.80.
The stock has delivered a negative return of around 25 percent in the past year and has underperformed the Nifty Index in the same period.
What Happened
The company’s stock is in focus after Maharashtra Seamless received an order worth ~Rs. 298 crores for the supply of seamless pipes in the Oil & Gas sector from a Domestic Entity. The period for the material dispatch will be done in the upcoming few quarters as per the customer’s requirement.
Business Segments
As per the recent December 2024 results, the company recognizes 97.30 percent of its operational revenue from Steel Pipes & Tubes, 1.31 percent from Electricity Power, 1.25 percent from Rig and the remaining 0.13 percent from others.
The major part of the Operating Profits constitute of Steel Pipes. However, the operating margins of the Power segment are higher than those of others in Q3FY25.
Order Book Analysis
The company has an order book of Rs. 1,674 crore, which comprises of Maharashtra state, which contributed around Rs. 1,296 crore, Telangana state contributes Rs. 178 crore, and ERW segment contribution of Rs. 200 crore as on 20th January 2025. 34 percent of orders are from ONGC & Oil and the remaining 66 percent from others.
Financial Performance
Their Q3FY25 results show revenue from operations of Rs. 1,408 crore which declined by 1.60 percent year on year, from Rs. 1,431 crore in Q3FY24. Their net profit declined by 32.60 percent year on year, from Rs. 276 crores in Q3FY24 to Rs. 186 crores in Q3FY25.
About the company
Maharashtra Seamless Ltd., a part of the DP Jindal Group, manufactures seamless and ERW pipes using CPE technology. It also engages in renewable power generation
Written by Santhosh S
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