The shares of the leading mechanical seal manufacturer gained up to 12 percent after the announcement that India is building 700 MW nuclear power reactors.
With a market capitalization of Rs 592.68 crore, the shares of Sealmatic India Ltd were trading at Rs 654.90 per share, increasing around 8 percent as compared to the previous closing price of Rs 608.65 apiece.
Reason for Rise:-
According to the company filing, the expansion of India’s nuclear power capacity with 14 new 700 MW reactors creates significant opportunities for Sealmatic India Limited. As the only Indian mechanical seal company with ISO 19443 accreditation, Sealmatic is well-positioned to meet the rising demand.
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With an estimated requirement of 1400 new mechanical seals by 2030, each reactor will need around 100 seals. Sealmatic aims to capture 15% of this market share, offering highly specialized seals for critical applications in nuclear power plants.
This development ensures long-term growth potential for Sealmatic, as the seals have a 30-year lifespan. The company is prepared both technically and commercially to support the construction and operation of India’s expanding nuclear infrastructure.
Financial performance:-
Looking into the company’s financial condition, Sealmatic India Ltd’s revenue soared by 8 percent from Rs 37.01 crore in H1FY24 to 34.00 crore in H2FY24. During the same time frame, net profits plummeted by 50 percent from Rs 6.59 crore to Rs 3.26 crore.
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Manufacturing facilities & client base:-
Recently, Sealmatic inaugurated a new 25,000 sq ft manufacturing facility in Kaman, with a capital investment of ₹6.82 crores, which will boost production capacity by 65%. Machine installation began in March 2024, and the unit will be fully integrated with the Mira Road facility by August 2024 to support timely order execution.
The company has a robust client base including Reliance Industries, Indian Oil, Oil India Ltd, Cipla, NTPC, Larsen & Toubro, ONGC, and others.
Company snapshot:-
Sealmatic India Limited is an Indian firm that designs and manufactures mechanical seals, related products, and sealing support systems. The Company offers a variety of developed mechanical seals and sealing support systems to meet the demands of clients all over the world.
Written by:- Abhishek Singh
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