Buy Ratnamani Metals & Tubes, target price Rs 2950: ICICI Direct

ICICI Direct has buy call on Ratnamani Metals & Tubes with a target price of Rs 2950. The current market price of Ratnamani Metals & Tubes is Rs 2508.5. Time period given by analyst is one year when Ratnamani Metals & Tubes Ltd. price can reach defined target.

Ratnamani Metals & Tubes Ltd., incorporated in the year 1983, is a Mid Cap company (having a market cap of Rs 11728.73 Crore) operating in Metals - Ferrous sector.

Ratnamani Metals & Tubes Ltd. key Products/Revenue Segments include Stainless Steel Tubes & Pipes, Sale of services, Other Operating Revenue and Power Generation for the year ending 31-Mar-2021.


Financials
For the quarter ended 31-03-2022, the company reported a Consolidated Total Income of Rs 983.99 Crore, up 4.93 % from last quarter Total Income of Rs 937.74 Crore and up 39.62 % from last year same quarter Total Income of Rs 704.79 Crore. Company reported net profit after tax of Rs 111.63 Crore in latest quarter.

Investment Rationale
The brokerage retains positive view on Ratnamani Metals and Tubes due to its steady EBITDA margin profile. It values Ratnamani Metals and Tubes at 25x FY24E EPS and arrive at a target of Rs 2950, maintaining our BUY rating on the stock.

Promoter/FII Holdings
Promoters held 60.16 per cent stake in the company as of 31-Mar-2022, while FIIs owned 12.13 per cent, DIIs 16.26 per cent.