Nuclear energy stock engaged in designing and manufacturing high-precision & heavy-duty mechanical seals widely employed in various nuclear & thermal projects jumped 5 percent in the day’s trade following strategic partnership with a Russian company to expand the business.
Price Action
With a market capitalization of Rs. 503 Crores, the shares of Sealmatic India Limited were trading at Rs. 543.40 per equity share, up 2.13 percent from its previous day’s close price of Rs. 543.40.
What Happened
Sealmatic India Limited has announced a strategic partnership with Fluiten OOO aiming to cater to the diverse demands of Russian industries while delivering world-class mechanical sealing solutions by establishing a robust presence in the Russian market, focusing on the sale, repair, and refurbishment of Sealmatic mechanical seals.
It is looking forward to serve prominent end users such as Lukoil, Rosneft, Gazprom, EUROCHEM etc., along with a host of other EPC companies and catering to key process industries, including Petrochemical, Power, Water, Desalination, Chemical, Mines & Minerals.
Mr. Sergey Berezin of Fluiten OOO, added, that we have joined forces to offer our customers a service package that can be tailored to all applications while at the same time progressively expanding our joint global service presence. With this partnership, we are poised to capture a significant share of the USD 150 million mechanical seals market in Russia.
Recent Capacity Expansion
Sealmatic India Limited recently announced the inauguration of its new state-of-the-art manufacturing facility at Kaman-Vasai, thereby enhancing its production capabilities. This new facility, spanning an impressive 25,000 sq ft, will enhance 65 percent of its production capacity to the existing production capacity housed at Mira Road.
It currently manufactures Mechanical Seals and their Components at Mira Road Factory with a capacity of 2,100 units per month and, the new facility will manufacture Mechanical Seals and API Vessels, with a capacity of 1,050 components per month.
About the Company
Sealmatic India Limited is engaged in designing and manufacturing high-precision & heavy-duty mechanical seals that are widely employed in various power plant applications both nuclear & thermal.
Sealmatic’s API-compliant mechanical seals offer technically competent, practical solutions that provide significantly greater safety and process reliability in refining technology, petrochemical, oil & gas, and chemical industries.
Clientele Base
Sealmatic India Limited has a strong customer base with well-known players like Reliance Industries Limited, IOCL, BPCL, HPCL, Oil India, BHEL, NTPC, ONGC, JSPL, GAIL, GSECL and many others.
Financials & Ratios
Its revenue from operations grew by 19 percent from Rs. 37.01 Crores in H1FY24 to Rs. 43.93 Crores in H1FY25, accompanied by profits of Rs. 6.59 Crores to Rs. 6.46 Crores.
In terms of return ratios, it has reported a return on equity (ROE) of 10.43 percent and a return on capital employed (ROCE) of 13.78 percent. In terms of liquidity, it has reported a debt-to-equity ratio of 0.06.
Written by: Bharath K.S
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