Fundamental Analysis

RATNAMANI METALS & TUBES LTD. 

Ticker : 520111 
BUY: Rs.978
Target: Rs.1100



Ratnamani Metals and Tubes is engaged in the manufacturing of tubes, pipes, hollow profiles, and tube or pipe fittings of cast-iron/cast-steel. The company's business segments include steel tubes and pipes and windmill. On the consolidated financial front, for Q2FY20, the company reported the net sales of Rs. 610.33 crores, a decrease of 16.43 per cent from Rs. 730.33 crores for Q2FY19. The PBDT expanded by 8.15 per cent to Rs. 132.38 crores for Q2FY20 from Rs. 122.40 crores for Q2FY19. The company gained a net profit of Rs. 76.46 crores, clocking a growth of 10.34 per cent compared to a net profit of Rs. 69.30 crores, gained in Q2FY19. In its order book, the company has witnessed a steady rise in the position of its higher-margin stainless steel segment, with a Capex revival in key industries for providing demand push. Thus, we recommend a BUY.