Maharashtra Seamless receives order worth Rs 262 crore

Order has been received from ONGC Ltd with a basic value of Rs 262 crore approx. for the supply of seamless tubing pipes and accessories. Delivery locations are Gujarat, Rajasthan, West Bengal, Assam and Tripura as required by ONGC Ltd.

Stock update: On Tuesday, shares of Maharashtra Seamless Limited opened plunged 2% to Rs 417.05 per share from its previous closing of Rs 425.75. The stock has a 52-week high of Rs 455 per share and a 52-week low of Rs 262.50. The stock has an EPS of Rs 33.89. The normal market opened at 1.57% to Rs 418.75 per share.

Order Update: According to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, we are pleased to inform you that the Company has received an order from ONGC Limited with a basic value of Rs 262 crores approx. The order is for the supply of seamless tubing pipes and domestic accessories. The order will be completed in 42 weeks.

Company profile: Maharashtra Seamless Limited, incorporated in 1988, is engaged in the business of manufacturing Steel Pipes and Tubes. It is also engaged in power generation. ERW Pipes - MS & Galvanized Pipes, API Line Pipes, OCTG, OCTG Casing Tubing. Seamless Pipes - Hot Finished Pipes & Tubes, Cold Drawn Tubes, Boiler Tubes, API Line Pipes, OCTG, OCTG Casing, and Tubing, OCTG Drill Pipe. Coated Pipes - 3LPE, FBE, 3LPP, Internal Coating, Premium Connections, Pipe Fittings.

Financial update: Talking about the financials, this BSE small-cap company has a market cap of over Rs 5,000 crore. The net sales rose by 17.56% and the net profit rose by 65% in Q3FY23 over Q3FY22. In FY22, net sales were 2x and net profit was 4x over FY21. Additionally, the company declared bonus shares in the ratio 1:1 on November 11, 2022, and previously declared a dividend of Rs 5 per share which had a record date of September 07, 2022. The stock has a PE of 9.04x and an ROE of 12% with a 1-year CAGR of 47%. The stock gave multibagger returns of over 200% in just 3 years.