Rs 2,900 Crore Order on Hand: Iron & Steel Company Enters into Joint Venture with Saudi Electric Supply Company Ltd
The stock is up by 18.4 per cent from its 52-week low of Rs 2,338 per share.
Ratnamani Metals and Tubes Limited (RMTL) has announced the execution and receipt of a Joint Venture cum Shareholders Agreement with Saudi Electric Supply Company Limited (SESCO) of the Kingdom of Saudi Arabia on April 10, 2025. This agreement marks a strategic partnership between RMTL and SESCO, a Tamimi Group company, with the primary objective of forming a Joint Venture Company in Dammam, Saudi Arabia. This JV Company will operate as a subsidiary and aims to provide critical tubing solutions to consumers within the Kingdom of Saudi Arabia and the broader Gulf Co-operation Council countries, with potential reach to the rest of the world.
The core purpose of this joint venture is to establish local manufacturing capabilities for seamless products that are currently being imported by consumers in the KSA and GCC regions. This initiative will enable RMTL to strengthen its local presence, enhance its brand visibility, and offer superior servicing to its customers in these key markets. SESCO, with its expertise in providing comprehensive supply chain solutions to major industries in Saudi Arabia, will contribute significantly through its local knowledge, access to the Tamimi Group's resources for project implementation, market assessment, legal support, and operational assistance, ensuring compliance with local regulations. The shareholding in the proposed JV Company will be 75 per cent for RMTL and 25 per cent for SESCO, with RMTL having the right to nominate three directors and SESCO two.
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Ratnamani Metals & Tubes Ltd is an Indian manufacturer specializing in stainless steel and carbon steel pipes and tubes, catering to industries like oil & gas and power. The company has diversified its business through the acquisition of Ravi Technoforge, which produces bearing rings, and by forming a joint venture to offer pipe spooling solutions and auxiliary support systems. These strategic moves indicate a focus on expanding its product range and market reach within the industrial sector.
The company has a market cap of over Rs 18,000 crore. The company has a robust order of Rs 2,900 crore as of November 01, 2024. The stock is up by 18.4 per cent from its 52-week low of Rs 2,338 per share. The shares of the company have a PE of 35x, an ROE of 22 per cent and a ROCE of 28 per cent. Investors should keep an eye on this mid-cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.