Ratnamani Metals Declares 600% Dividends; Profit Jumps 72% In Q4FY23

Company Profile  

Ratnamani Metals and Tubes Limited is one of the leading manufacturers of critical piping and tubing products for customers in the Oil and Gas, Petrochemicals & Refinery, Fertiliser & Chemical, Power, Water, Infrastructure and other critical high growth industries.   

The Company has diverse product portfolio which includes Nickel Alloy/Stainless Steel Seamless Tubes & Pipes, Stainless Steel Welded Tubes & Pipes, Titanium Welded Tubes, Carbon Steel Welded Pipes, Stainless Steel/Carbon Steel Pipes with Coating and Induction Bends.  

Clients  

Ratnamani has an impressive clientele comprising of major public, private and joint sector companies across the globe, which are leaders in their respective segments. The tubes and pipes are supplied in accordance with the appropriate international standards as well as customer specifications in large variety of grades and dimensions.  

Stock Action on Thursday  

The stock is on cloud 9 on Thursday as it has jumped 9% and marked a fresh 52-week high of Rs 2528 on NSE. The total traded volume on NSE has already surpassed 4 lakh shares and this is the highest single trading session volume registered by the stock since last nine months.   

Q4FY23 Performance and Dividend   

So, what’s the key catalyst for this unprecedented rise in the stock price early in the session? Company reported its earnings on Wednesday post market and market participants are reacting to the robust earnings reported by the stock.   

In Q4FY23, company sales stood at Rs 1499 crore logging a staggering growth of 54% YoY. Operating profit jumped to Rs 301 crore in Q4FY23 as compared to R 169 crore in Q4FY22. Operating margins also improved from 17% in Q4FY22 to 20% in Q4FY23. Net profit jumped nearly 72.3% YoY to Rs 193 crore. The cherry on the top is the Board recommended a dividend of Rs 12 per equity share (i.e., 600%) on face value of Rs 2.  Along with the dividend, the Board recommended seeking enabling resolution for the Issuance of Unsecured / Secured Redeemable Non-Convertible Debentures / Bonds (NCDs) by way of Private Placement for an amount not exceeding Rs.500 crore, in one or more tranches, subject to the approval of the Members.   

Multibagger Returns   

Talking about the stock’s performance, it has added nearly 16% in the last one-month, while on YTD basis the stock is up by 24% and in the last three years the stock has delivered multibagger returns of over 300%.