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Last Updated : Nov 06, 2019 10:55 AM IST | Source: Moneycontrol.com

Buy Ratnamani Metals and Tubes; target of Rs 1150: ICICI Direct

ICICI Direct is bullish on Ratnamani Metals and Tubes has recommended buy rating on the stock with a target price of Rs 1150 in its research report dated November 05, 2019.

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ICICI Direct's research report on Ratnamani Metals and Tubes


Ratnamani Metals & Tubes (RMTL) reported a steady set of Q2FY20 numbers wherein EBITDA margins were at 19.1% (up 160 bps QoQ, 320 bps YoY). Stainless steel (SS) sales volumes were at 5813 tonnes (up 27% QoQ, 3% YoY) while carbon steel (CS) sales volumes were at 50791 tonnes (down 13% QoQ, 34% YoY). Topline for Q2FY20 was at Rs 610.3 crore (up 4% QoQ, down 16% YoY). EBITDA came in at Rs 116.5 crore (up 13% QoQ, flattish YoY). Other income for Q2FY20 came in notably higher at Rs 21.5 crore (up 103% YoY, 95% QoQ). The ensuing PAT was at Rs 76.4 crore (up 22% QoQ, 10% YoY).



Outlook


We maintain our BUY rating on the stock. We remain positive on the overall demand prospects given significant investments planned by the government in the oil & gas sector and city gas distribution and water transportation boosting overall pipes demand (both stainless steel and carbon steel).


For all recommendations report, click here

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First Published on Nov 6, 2019 10:55 am
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