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Company Search 43
Thursday, December 27, 2007
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Investment Idea
Aug 29 2007 12:24PM
Ratnamani Metals & Tubes Limited

Ratnamani Metals & Tubes Limited
(Rs. 1006, FY09E - P/E 7x, BUY with a Target Price of Rs. 1361)


Business Background
RMTL incorporated inSeptember 1983 was promoted by Mr. Prakash Sanghvi. RMTL is engaged in the manufacturing and marketing of stainless steel seamless and welded tubes, and pipes for domestic and export markets and it enjoys 30% market share in domestic market. RMTL also operates another division which manufactures carbon steel tubes and pipes. It consists of two separate units, one for welded stainless steel pipes and tubes, and the other for seamless stainless steel pipes and tubes. The carbon steel pipes (SAW Pipes) division operates two mobile plants for manufacturing MS SAW large diameter pipes for water supply pipelines. RMTL manufactures its steel seamless and welded tubes and pipes in various stainless steel grades, conforming to different ASTM and DIN standards. The company's large diameter EFW pipe range extends up to 1500mm diameter and 20mm wall thickness. The SAW Pipe Division of RMTL manufactures long seam and circ-seam large diameter pipes from 16" OD to 102" OD. RMTL uses green power which it generates from its owned wind mills, with an installed capacity to generate power up to 8.5MW.

RMTL has its facilities located at Chhatral and Kutch and apart form these two plants, its projects pipe division operates two mobile plants for making large diameter SAW pipes at the customer's site.

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