Shares of this microcap company jumped by 4 percent in Monday’s trading session after receiving an order worth 15 crores from Kirloskar Ebara Pumps. The shares have delivered more than 60 percent returns to its shareholders in one year.
With a market capitalization of Rs. 505 crores, the shares of Sealmatic India Ltd started Monday’s trading session on a higher note at Rs. 572.70 compared to its previous close of Rs. 538.50. During the trading session, the shares hit a high of Rs. 573, gaining around 4 percent and are currently trading at Rs. 557 apiece.
Such a positive movement in the share price was observed after the company in an exchange filing announced that they secured an order for mechanical seals and supply systems (API 682 Plans) worth Rs. 15 crores from a key Original Equipment Manufacturer (OEM) Kirloskar Ebara Pumps Pvt Ltd, through Engineers India Ltd for the Mongol Refinery project.
The project encompasses the supply of 247 nos of mechanical seals and 187 nos of API 682 Plans, including API Plan 52 of 87 nos, 74 nos of API Plan 53B, and 26 nos of API Plans 21 and 23.
Looking at the company’s financial statements, the revenue decreased by 8 percent from Rs. 37.01 crores during H1FY24 to Rs. 34 crores in H2FY24. On the other hand, the net profits declined by 51 percent from Rs. 6.59 crores to Rs. 3.26 crores during the same period.
Sealmatic is the only mechanical seal company in India that has received ISO 19443 accreditation for Nuclear Applications. It is India’s only domestic manufacturer or monopoly company in mechanical seal production.
In terms of key financial metrics, the company reported a Return on Equity (RoE) of 11.22 percent and a return on capital employed (RoCE) of 15.34 percent for the period spanning FY23-24.
Moreover, in December 2023, Sealmatic partnered with EcoTech to offer superior-quality sealing technology and will significantly add value to the convenience of users in process industries such as oil & gas, refining, power, marine, pulp & paper, chemical, petrochemical, etc.
Sealmatic is one of the few Indian companies that has been approved/registered as a vendor with both national and international clients. It is the only indigenous mechanical seal producer approved by BHEL for thermal power plant components and it operates in over 45 countries worldwide.
Headquartered in Maharashtra, Sealmatic India was incorporated in 2009. The manufactures mechanical seals, seal supply systems, pumps, valves, motors and high-precision mechanical engineering spares and assemblies.
Written By Vaibhav Patil
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