Rs 2,600 crore order book: This iron & steel company forms a joint venture with Technoenergy AG, Switzerland for business expansion!
The stock gave multibagger returns of 230 per cent in just 3 years with an ROE of 25 per cent and a ROCE of 27.3 per cent.
Ratnamani Metals and Tubes Limited (RMTL) informed that the company have entered into a joint venture with Technoenergy AG, Switzerland (TEAG) namely Ratnamani Finow Spooling Solutions Private Limited in India, which shall be a subsidiary Company (JV Company). Upon incorporation of the JV Company with Rs 270 lakh as initial paid-up capital, the shareholding shall be in the ratio of 51 per cent to be held by RMTL and 49 per cent to be held by TEAG.
The purpose of the JV Company is to provide pipe spooling solutions, fittings and auxiliary support systems for piping and tubing applications. Through this JV, RMTL proposes to widen its product basket by providing comprehensive piping and spooling solutions in India and across the globe to the end consumers.
RMTL possesses the necessary infrastructure and a strong reputation in the market to complement and supplement TEAG (and its group companies) for providing spooling solutions considering the focus for localization in various critical sectors like Nuclear Power, Oil & Gas, Thermal Power, Water & Sewage treatment and other applications.
FINOW GmBH a Subsidiary of TEAG based out of Germany, has been operating in this segment for decades and possesses strong technical expertise in manufacturing various types of high-precision pipe spools, fittings, hanger support systems and auxiliary piping & tubing support solutions for power plants, chemical plants, oil & gas industries, water management and other industrial applications.
On Friday, shares of Ratnamani Metals & Tubes plunged 0.32 per cent to Rs 2,586.20 per share with an intraday high of Rs 2,676.25 and an intraday low of Rs 2,526.90. The company has been maintaining a healthy dividend payout of 20.20 per cent and has delivered good profit growth of 27.5 per cent CAGR over the last 5 years.
Ratnamani Metals & Tubes Ltd is engaged in the manufacturing of stainless steel pipes and tubes and carbon steel pipes from its manufacturing facilities in India. The company has a market cap of over Rs 18,000 crore. The company has a robust order book of Rs 2,600 crore as of March 31, 2023.
The stock gave multibagger returns of 230 per cent in just 3 years with an ROE of 25 per cent and a ROCE of 27.3 per cent. Investors should keep an eye on this Mid-Cap stock.
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