Shares Maharashtra Seamless rallied 10 per cent to hit an over two-year excessive of Rs 47 in intra-day commerce on Wednesday. With at present’s achieve, the scrip has soared 50 per cent within the first 9 buying and selling days of October. The inventory of the iron and metal merchandise firm was quoting at its highest stage since Could 2019.
On October 8, 2021, Maharashtra Seamless introduced that the corporate has efficiently bagged an order price Rs 237 crore from Oil and Pure Fuel Company Restricted (ONGC) for the availability of seamless casings pipes.
The corporate primarily caters to corporations within the Oil & Fuel sector, the place it’s a registered vendor for main home oil producers and refiners. As well as, it additionally caters to different segments, together with energy vegetation, boilers, car engineering and so forth. For the upstream oil & fuel sector, concerned in exploration and manufacturing, the demand outlook appears to be like secure.
The corporate has an upstream publicity of 30 per cent and mid and downstream publicity of 70 per cent. As well as, 50 per cent of the business combine is coming from oil & fuel. The corporate’s deal with newer merchandise ought to assist it in retaining and enhancing the market share, Maharashtra Seamless mentioned in its FY21 annual report.
With the event of the renewable energy portfolio throughout Maharashtra and Rajasthan, the corporate has been capable of meet its inexperienced power necessities. The corporate’s capability share within the home seamless pipe market stands enhanced additional with the acquisition of United Seamless Tubulaar Non-public Restricted (USTPL). With the addition of USTPL, it has added to its income and profitability by way of the introduction of latest merchandise just like the oxygen cylinder pipes which ought to cater to the shortage of provide for the excessive demand merchandise, it added.
The demand for Seamless and ERW pipes which received impacted in 2020 as a consequence of pandemic is again on observe in 2021 driving on first rate deliberate authorities expenditure, corporates being bullish on the financial restoration and with the opening of worldwide borders for commerce, exports are seeing an upside and rising development within the metal costs coming to assist, the corporate mentioned.