Stock engaged in designing and manufacturing high-precision & heavy-duty mechanical seals that are widely employed in various power plant applications both nuclear & thermal jumped upto 6 percent in the day’s trade upon receving new work order from BHEL for mechanical seals for a supercritical power plant.
Price action
With a market capitalization of Rs. 561 Crores, the shares of Sealmatic India Limited were trading at Rs. 620 per equity share, up 3 percent from its previous day’s close price of Rs. 603.60.
What Happened
Sealmatic India Limited has received a new work order from Bharat Heavy Electricals Limited (BHEL) for the supply of engineered mechanical seals for a supercritical power plant through BHEL for the DVC Raghunathpur Thermal Power Station Phase – II 660 MW X 2 = 1320 MW. DVC currently has 6687.2 MW of installed capacity and has many more projects in the pipeline.
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Sealmatic is the only approved vendor for such super critical applications for the 660 MW power plants at BHEL, other than very few foreign vendors. This construction of an additional capacity of 1320 MW by DVC will create opportunities for Sealmatic, hence, throwing open a profitable business till the lifetime of the equipment.
The mechanical seals are for demanding applications such as Boiler Feed Pumps, Booster Pumps, Turbine Pumps, Condensate Extractions Pumps, etc. This will ensure the long-term O&M business for Sealmatic for the above pumps which are mission critical.
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.
Sealmatic India Limited has a strong customer base with wellknown players like Reliance Industries Limied, IOCL, BPCL, HPCL, Oil India limited, BHEL, NTPC, ONGC, JSPL, GAIL, GSECL and many others.
The mechanical seals market size is forecasted to increase by USD 1.73 billion at a CAGR of 5.55 percent between 2025 and 2030.
Financials & Ratios
Its revenue from operations grew by 21.32 percent from Rs. 58.54 Crores in Q1FY24 to Rs. 71.02 Crores in Q1FY25, accompanied by profits of Rs. 10.98 Crores to Rs. 9.85 Crores.
In terms of return ratios, it has reported a return on equity (ROE) of 11.8 percent and a return on capital employed (ROCE) of 16.1 percent. In terms of liquidity, it has reported a debt-to-equity ratio of 0.04.
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Written by: Bharath K.S
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