Buy Ratnamani Metals and Tubes; target of Rs 2500: Sharekhan

Sharekhan is bullish on Ratnamani Metals and Tubes has recommended buy rating on the stock with a target price of Rs 2500 in its research report dated February 15, 2023.

Broker Research

March 13, 2023 / 18:37 IST

26 Aug, 2025 12:21

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Todays L/H

Sharekhan's research report on Ratnamani Metals and Tubes

Q3FY23 results were strong, led by better-than-expected revenue growth of 19% y-o-y and 192 bps beat in OPM at 18.1% (up 403 bps y-o-y). Operating profit/PAT of Rs. 199 crore/Rs. 134 crore, up 52%/51% was 17%/17% above our estimates. Order book remains strong at Rs. 3,102 crore (versus Rs. 3,244 crore in Q2FY23) and our expectations for improvement in bid pipeline would further boost order book going forward. RMTL has a new capex plan of Rs. 350 crore (asset turn of 1.5-2x) for expansion of both CS/SS capacities and would drive the next leg of growth for RMTL.

Outlook

We maintain a Buy on RMTL with a revised PT of Rs. 2,500 as RMTL’s dominant domestic position makes it key beneficiary of demand recovery in steel tubes and pipes. Strong order book position and robust bid pipeline to drive 25% PAT CAGR over FY24E-25E with healthy RoE of 18%. Stock trades at 27.6x/23.3x its FY24E/FY25E EPS.

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