Ratnamani Metals stock zooms 16%, turns ex-date for bonus issue

Shares of Ratnamani Metals & Tubes zoomed over 16 per cent after the stock turned ex-bonus today. The company will issue one bonus share for every two shares held by the existing shareholders. The bonus issue of shares was announced on May 18, 2022.  Record date for the bonus issue is July 1.

Stock of Ratnamani Metals & Tubes gained 16.6 per cent to Rs 1,920 against the previous close of Rs 1664.15 on BSE. Shares of Ratnamani Metals & Tubes opened with a gain of 9.25 per cent at Rs 1,799 today.

Ratnamani Metals stock is trading lower than 5-day, 20-day, 50-day, 100-day, and 200-day moving averages. Ratnamani Metals stock has gained 39.52 per cent in one year and risen 47.37 per cent since the beginning of this year.

Total 7,686 shares of the firm changed hands amounting to a turnover of Rs 1.43 crore on BSE. The market cap of the company rose to Rs 12,738 crore.

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Meanwhile, ICICI Direct has given a buy call to the share with a target price of Rs 2,950 on May 20. The brokerage is positive 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 its BUY rating on the stock.

"Order book as on May 1, 2022 was at Rs 2,223 crore ( Rs 1,912 crore as on February 1, 2022). As on May 1, 2022, the stainless steel order book was at Rs 650 crore (Rs 666 crore as on February 1, 2022) while carbon steel orders were at Rs 1,573 crore (Rs 1,246 crore as of February 1, 2022). Over FY22-24E, we expect the top line to grow at a CAGR of 19% while EBITDA, PAT is expected to register CAGR of 26 per cent, 31 per cent, respectively," the brokerage said.

Ratnamani Metals and Tubes is engaged in manufacturing stainless steel pipes and tubes, and carbon steel pipes. The company operates through steel tubes and pipes segment. The company operates its geographical segments in India and outside India. It offers a range of stainless steel welded/ seamless tubes and pipes and carbon steel welded pipes.