Exciting Multibagger Opportunity: Rs 298 Crore Order Secured by Leading Pipe Manufacturer!
Secures Rs 298 Crore Order for Seamless Pipes in Oil & Gas Sector
Maharashtra Seamless Limited has received a significant order worth approximately Rs 298 crores for the supply of seamless pipes. This order is from a domestic entity in the oil and gas sector. The company will execute the order through gradual dispatches over the next few quarters based on customer requirements.
No Related Party Transactions
The company confirmed that the order does not fall under related party transactions, and neither the promoter group nor any related companies have any interest in the entity awarding the contract.
Strengthening Market Position
This new order further strengthens Maharashtra Seamless Limited’s position in the domestic seamless pipes market. With a focus on providing quality products, the company continues to benefit from rising demand in the oil and gas sector.
Q3 FY25 Financial Performance
In Q3 FY25, the company reported a revenue increase of 2 per cent, reaching Rs 1,410 crores compared to the previous quarter. EBITDA rose by 21 per cent to Rs 280 crores. However, Profit After Tax (PAT) declined to Rs 190 crores from Rs 224 crores, while EPS dropped to Rs 14.19 from Rs 16.73 per share. The decline in PAT and EPS is attributed to lower returns on the company’s treasury investments.
Operational Highlights
Seamless pipe dispatches improved by 16 per cent quarter-on-quarter, supporting earnings growth. The company’s focus on optimizing its product mix has also led to better margin profiles. Demand for seamless pipes remains strong, driven by ongoing capital expenditure in the oil and gas sector.
Order Book and Outlook
Maharashtra Seamless maintains a stable order book, currently valued at Rs 1,674 crores, within its usual range of Rs 1,500 to Rs 2,000 crores. The company expects seamless pipe dispatches for FY25 to be around 4,30,000 to 4,35,000 tons, while the ERW segment is projected to reach approximately 90,000 tons.
Future Growth Plans
The company is preparing to commission a finishing line facility in Telangana post-December 2025. This new facility is expected to contribute around 15,000 tons in Q4 FY26, boosting future revenues. Discussions with a foreign player to expand premium thread products are also underway.
Market Dynamics and Challenges
Maharashtra Seamless is closely working with the government to address challenges related to Chinese dumping practices. While the domestic seamless pipe market is protected by existing anti-dumping measures, the company is advocating for additional protections to maintain fair competition.
Commitment to Shareholders
The company remains focused on delivering value to shareholders through strategic growth initiatives and efficient treasury management. With a robust order book and strong operational performance, Maharashtra Seamless Limited is well-positioned for future growth in the seamless pipe sector.
Disclaimer: The article is for informational purposes only and not investment advice.