Hold Ratnamani Metals and Tubes; target of Rs 3950: Sharekhan

About this update from Ratnamani Metals & Tubes Ltd.

Sharekhan's research report on Ratnamani Metals and TubesPAT 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.OutlookStrong 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.For all recommendations report, click hereDisclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.Ratnamani Metals & Tubes - 22112024 - khan

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