Ratnamani Metals
CMP Rs. 126.00
BSE Code : 52011
Despite Ratnamani Metals making new 52W high, investors can but this scrip for handsome gain in short as well long
term. Over the years company has emerged as a single stop provider for the steel piping solutions for array of lications required for the large projects in oil & gas and power sector.
It makes high frequency welded (HFW) & electric resistance welded (ERW) pipes apart from manufacturing longitudinal submerged arc welded [L-SAW] pipes & helical submerged arc welded [H-SAW] pipes of large diameter which are primarily used for continuous transportation of large quantities of oil, natural gas and water over the long distances. To maintain its growth momentum company has been constantly enhancing its production capacity and presently also is in the midst of adding 50,000 TPA of HSAW in the current fiscal to take the total installed capacity to 4,20,000 TPA. Besides, as a part of forward integration, it has set up a 3 layer polyethylene and epoxy coating line with capacity of 2.7 million sq mtrs.
Incidentally company’s net interest cost has come down significantly thereby giving a fillip to its bottomline. It has already posted an EPS of Rs 12.50 till date in the first nine months. For FY10 it is expected to clock a turnover of Rs
725 cr and PAT of Rs 75 cr i.e. EPS of Rs 17 on equity of Rs 9 cr having face value as Rs 2/- per share for FY10. And for FY11 it can post an EPS of more than Rs 20. Even at an forward discounting by 8x times, scrip can shoot up to Rs 160 within 9~12 months.
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