Sharekhan's research report on Ratnamani Metals and Tubes
PAT stood at Rs. 99 crore (down 40%/6% y-o-y/q-o-q) was 23% below our estimate due to monsoon led delayed dispatches and weakness in pricing. OPM fell by 584 bps on lower execution of export orders, which are scheduled to be executed in the coming quarters. Order book rose 16% q-o-q to Rs. 2,960 crore. Strong traction was seen in inquiry of export orders.
Outlook
Strong balance sheet and dominant domestic position in steel tubes & pipes segment makes it well-placed to capture medium to long-term growth opportunities from oil & gas and the water supply segment. We retain a Hold rating due to limited upside on the rich valuations with a PT of Rs. 3,950. Stock trades at 32x FY27 EPS and 20x FY27 EV/EBITDA.
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