On Wednesday, the share price of the company rose 2.3 percent to its intraday high of Rs 3,485 from its previous close of Rs 3,403.95 after the company entered into a joint venture with Technoenergy AG, Switzerland company.
According to Ratnamani Metals and Tubes Limited’s filing, the company has formed a joint venture with Technoenergy AG, Switzerland, and Mr.Andrey Merzlyakov. TEAG subscribed for 10,700 Registered Shares with a nominal value of EUR 10 each, for a total share capital of EUR 1,07,000.
A joint venture between RMTL and European partners Technoenergy and Mr. Merzlyakov aims to dominate Europe’s stainless steel market. RMTL uses Technoenergy’s existing sales network and expertise to establish a dedicated trading house, increasing brand visibility, customer service, and delivery times.
Looking at the Ratnamani Metals and Tubes Ltd financials, the net revenue increased by 25 percent year over year, from Rs 899 crore in Q2FY23 to Rs 1,131 crore in Q2FY24. Their revenue fell by 3 percent sequentially from Rs 1,174 crore in Q1FY24 to the current levels.
In addition, the company’s net profit rose by 66 percent year over year, from Rs 98.7 crores in Q2FY23 to Rs 164.3 crores in Q2FY24. Their profit declined from Rs 134.8 crore in Q1FY24 to the current levels on a sequential basis, a 21 percent increase.
This is a midcap stock with a market capitalization of Rs 24,146 Crores. The share price of the company rose by 48 percent and 72 percent year to date.
Ratnamani Metal and Tube Ltd has a low debt-to-equity ratio of 0.09 with a return on equity of 21 percent, a return on capital employed of 27 percent, and a net profit margin of 11 percent.
The promoter of the company owns 60 percent of the company, while the general public owns 11 percent, foreign institutional investors own 13 percent, and domestic institutional investors own 16 percent.
Ratnamani Metals & Tubes Ltd, founded in September 1983, manufactures stainless steel pipes and tubes and carbon steel pipes in India.
Written by Sriram KV
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