The shares of the steel pipes and tubes manufacturer gained up to 7 percent after the company received a new work order worth Rs 674 crore from Oil and Natural Gas Corporation Ltd
With a market capitalization of Rs 12,261.58 crore, the shares of Maharashtra Seamless Ltd were trading at Rs 915.05 per share, increasing around 2 percent as compared to the previous closing of Rs 897.15 apiece.
According to the company filing, Maharashtra Seamless Ltd has received a new work order with a basic value of Rs. 674 crores approx. from ONGC Ltd. for the supply of casing seamless pipes. Gradual dispatches within a period of 44 weeks.
Looking into Maharashtra Seamless Ltd’s financials, the revenue increased by 7 percent, from Rs 1,339 crore in Q3 FY23 to Rs 1,431 crore in Q3 FY24. During the same period, net profit increased 62 percent, from Rs 160 crore to Rs 276 crore.
The company has a market share of 55 percent in the seamless pipes segment with manufacturing facilities at Nagothane & Mangaon in Maharashtra and Narketpally in Telangana and an 18 percent market share in the API-certified, high-frequency ERW pipes segment with manufacturing facility at Nagothane in Maharashtra.
The firm has an extensive clientele, including well-known companies like CPCL, Bharat Petroleum, HP, ONGC, Indian Oil, Reliance Industries and others.
The stock has delivered 36.03 percent in the last six months but a multi-bagger return of 140.43 percent in a year. A shareholder’s investment of Rs. 1 lakh in the company would be worth Rs. 2.40 Lakh in a year.
In the most recent fiscal year, the firm generated 95% of its revenue from the steel pipes and tubes sector, with 2% coming from the power and energy division. The business has planned a capex of Rs 852 crore for FY24 to FY26.
The firm has two factories in Maharashtra and Telangana, with a combined capacity of 6,50,000 mt per year. As of October 2023, the firm has an order book worth Rs 2,063 crores.
Maharashtra Seamless Limited is an India-based steel pipe and tube manufacturer. The company is divided into three segments: steel pipes and tubes, power electricity, and RIG. The company makes seamless pipes and tubes utilizing CPE technology.
Written by:- Abhishek Singh
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