Shares of this metal stock under the ‘mid-cap’ category gained up to 6 percent in Friday’s trading session after the company posted results for the quarter ended September 2023. In the past month, the company’s stock has soared around 12 percent.
With a market capitalization of Rs 20,626.32 crores, the stocks of Ratnamani Metals & Tubes Limited started their trading session on Friday at Rs 2,947.05 and currently trades at Rs 2,942.75. The scrip witnessed an intra-day high of Rs 2,983.10 indicating a jump of around 6 percent as compared to the previous close of Rs 2,823.90 apiece.
Such bullish sentiments around the share prices are observed after the company, through a regulatory filing with the exchange, announced its financial results for Q2FY24, i.e., for the quarter ended September 2023.
The company, on a sequential basis, reported an increase in the prime indicators of business such as operating revenues and net profits. The former stayed uniform at the levels of around Rs 1,150 crores and, the latter shifted up from Rs 135 crores during Q1FY23-24 to Rs 164 crores during Q2FY23-24.
In addition, the company showed positive movements in the abovementioned metrics with the operating revenues increasing from Rs 900 crores during Q2FY22-23 to around Rs 1,150 crores during Q2FY23-24, and, the net profit numbers, keeping the timeframe the same, moved up from Rs 99 crores to Rs 164 crores representing a jump of approximately 66 percent.
Historically, the company has been successful in increasing its basic profitability metrics such as the return on equity (RoE) and return on capital employed (RoCE). The former increased from 15.23 percent during FY21-22 to 21.12 percent during FY22-23, and, the latter, keeping the timeframe the same, moved up from 19.75 percent to 27.74 percent.
According to the shareholding pattern data for the quarter ended September 2023, the company’s Promoters hold a 59.77 percent stake, and the Foreign Institutional Investors (FIIs) hold a considerable stake of 12.87 percent in the company.
Ratnamani Metals & Tubes Limited is engaged in the business of manufacturing stainless & carbon steel pipes, tubes, etc. Earning a majority of revenue from domestic operations within India, the company’s product portfolio consists of various internal and external coating solutions, pipes, and tubes.
Written by Amit Madnani
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