Ratnamani Metals up 9% on Rs 298-crore orders from oil & gas sector

On Monday the stock had ended 5% lower after the company said that the IT department had conducted search operations at the company's registered office

Shares of Ratnamani Metals & Tubes soared 9 per cent to Rs 2,203 on the BSE in the intra-day trade on Tuesday after the company said it has received new domestic orders aggregating to Rs 297.87 crore from the oil & gas sector. The orders are to be executed between February 2022 and January 2023. The company made announcements on Monday after market hours.

The stock of the iron & steel products manufacturer had hit an all-time high of Rs 2,300 on October 21, 2021.

Today's rally helped the stock recover from yesterday's drubbing, where it ended 5 per cent lower at Rs 2,026. The company, in a separate exchange filing, has informed the exchanges on Monday that Income Tax department has conducted search operations at the registered office, corporate office, branch offices & plants of Company during the period from Nov 23, 2021 to Nov 27, 2021.

"We do not foresee any material impact on the Co's current or future business operations. Further, as an organization, the Co. continues to conform to the highest standards of corporate governance, as demonstrated in the past. This letter is being provided to the SEs in order to put to rest any speculative or baseless information circulating without the endorsement of the Company," Ratnamani Metals said.

In the month of October, Ratnamani Metals & Tubes had announced that it had received a new order worth of Rs 242 crore (excluding GST) for supply of stainless steel pipes and carbon steel pipes from oil & gas sector. These orders to be executed in 12 months, the company said.

Going forward, Ratnamani Metals expects the year 2021-2022 to be challenging because the fight against the pandemic continues. "However, the management expects economic activity to normalise in many countries that are important for the company’s business, especially with the roll out of vaccination programmes worldwide," it had said in the financial year 2020-21 (FY21) annual report,

"The outlook looks promising, with opportunities across oil & gas, cross country pipelines and City Gas Distribution projects announced by the Government of India as well as several nations globally. Besides, chemicals and pharmaceuticals also throw upon a strong growth potential," the company added.