During Tuesday’s trading session, the shares of a micro-cap company engaged in the manufacturing of seals and pumps surged nearly 4.2 percent to hit an intraday high at Rs. 550 on BSE, after the company announced securing approval from Kuwait Petroleum Company.
With a market cap of Rs. 477 crores, at 01:55 p.m., the shares of Sealmatic India Limited were trading in the green at Rs. 532, up by around 0.8 percent, as compared to its previous closing price of Rs. 528.15.
What’s the news
Sealmatic India Limited, as per recent regulatory filings with the stock exchanges, has announced receiving approval from the Kuwait Petroleum Company (KPC), the parent company of several subsidiaries, including KIPIC, KPI, KUFPEC, KGOC, KOC, KNPC, PIC, KOTC, and others.
This certification underscores Sealmatic’s dedication to innovation, quality, and reliability within the global oil and gas industry. Furthermore, Sealmatic is set to play a key role in supporting KPC and Kuwait’s ambitious energy goals.
As the company continues to set industry benchmarks, the KPC approval further solidifies its leadership in providing advanced sealing solutions for the oil and gas sector.
About the awarding entity
Presently, Kuwait’s oil production capacity is 2.9 million barrels per day, with expectations to increase to 3.2 million barrels per day by 2026. The Kuwait Petroleum Company (KPC) and its subsidiaries, including the Kuwait Oil Company (KOC), are leading multiple major projects across the country.
According to KPC’s CEO, KOC plans to increase its oil production capacity to 3.65 million barrels per day by 2035 as part of its new strategy. This expansion is expected to generate an additional $11 billion in state revenue over the next five years.
KOC accounts for ~90 percent of Kuwait’s oil production and also aims to achieve a daily gas production capacity of 1.5 trillion cubic feet by 2040.
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Previous News
30th December 2024: The company announced global expansion through a strategic partnership with ValueTech Engineering Technologies in Egypt. With this partnership, Sealmatic will meet the diverse needs of customers in Egypt and across Africa by offering Sealmatic’s global standards of excellence.
6th January 2025: Sealmatic India announced another strategic partnership with Fluiten OOO. With this collaboration, the company will cater to the diverse demands of Russian industries while delivering world-class mechanical sealing solutions.
The partnership was established to strengthen Sealmatic’s presence in the Russian market, with an emphasis on the sale, repair, and refurbishment of Sealmatic mechanical seals.
Financials
Sealmatic India reported a marginal growth in revenue from operations, experiencing a year-on-year increase of nearly 19 percent, rising from Rs. 37 crores in H1 FY24 to Rs. 44 crores in H1 FY25.
In contrast, the company’s net profit decreased from Rs. 6.6 crores to Rs. 6.5 crores over the same period, representing a marginal decline of around 1.5 percent YoY.
Stock Performance
The stock has delivered negative returns of nearly 2.5 percent in one year, as well as around 24 percent returns in the last six months. Further, the shares of Sealmatic India have given negative returns of about 6 percent in the last one month.
About the company
Incorporated in 2009, Sealmatic India Limited is engaged in the business of manufacturing a wide range of mechanical seals, seal supply systems, pumps, valves, motors and high-precision mechanical engineering spares and assemblies for various machineries which are mainly used in the Oil & Gas Industry.
In 2023, Sealmatic was awarded the ISO 19443 for nuclear applications. making it the only mechanical seal company in India to hold this certification.
Written by Shivani Singh
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