Stock below Rs 300: Don’t miss out the action in this SME stock having huge potential in industrial applications!
Being a prominent player in the sector, the company has consistently shown rising sales and net profitability.
If there is one segment in the domestic market which is buzzing and gushing, it has to be the IPOs of small and medium enterprises (SME). The increasing popularity of SME stocks has certainly gained the limelight among the retail and HNI groups. SME stocks are known for their massive upside potential and growth, while they are also associated with a highly risky environment.
Meanwhile, one SME IPO was a huge hit in February 2023 as it was oversubscribed by 16.60 times! It put up a mega show on the bourses on April 17, 2023 (Monday) as it hit a fresh all-time high level of Rs 290.
The stock is Sealmatic India (BSE Code - 543782), which specializes in the design and manufacturing of mechanical seals and associated products for various industries like oil and gas, chemical, pharmaceutical, mining, power, aerospace, etc. Seal is an important and crucial component for any industrial application, and such a market is mainly dominated by MNCs.
The global mechanical seals market is expected to hit USD 4.77 billion by 2026 and exhibits a CAGR of about 5.20 per cent. Interestingly, the Indian seal market has shown significant growth in the past few years, with a valuation of about Rs 1900 crore in 2022.
Being a prominent player in the sector, the company has consistently shown rising sales and net profitability. For FY 21-22, the revenue grew at a rate of 20 per cent YoY to Rs 42 crore, while net profit jumped about 33 per cent YoY to Rs 8 crore.
Meanwhile, the management group has held good experience in this industry and expects robust growth in upcoming quarters. The company has a strong customer base, which includes big names like Reliance Industries, Indian Oil Corporation, Sulzer Ltd, KSB, GAIL, and Tata.
It would be interesting to see how the company shall be able to maintain its margins and at the same time, be able to compete with the MNCs. Currently, the SEALMATIC shares have recorded multifold volumes and have surged over 12 per cent on April 17, 2023.
Investors should include this stock in their watchlist to track its further progress.