Maharashtra Seamless shares jump over 7% on bagging ₹674-crore order from ONGC

Shares of Maharashtra Seamless Ltd, a DP Jindal group company, rallied as much as 7.5% in trade on Friday, April 12, after the company announced that it has won a new order worth ₹674 crore.

Maharashtra Seamless, which calls itself the largest manufacturer of ERW (electric resistance welded) and seamless pipes in India, on Thursday said that it has received an order from state-owned Oil and Natural Gas Corp. Ltd (ONGC) with basic value of around ₹674 crore for supply of casing seamless pipes.

In filing to the stock exchanges, the company informed that the order will be dispatched gradually within a period of 44 weeks.

After the announcement, shares of Maharashtra Seamless gained as much as 7.5% to hit an intraday high of ₹964.45 apiece on the NSE. However, the stock gradually trimmed its early gains to trade just about 1% higher at ₹907 apiece by 12:44 pm.

Maharashtra Seamless shares have gained nearly 35% in the past six months and over 138% in the last one year. However, year-to-date in 2024, the stock price has remained largely flat.

Maharashtra Seamless was incorporated in May 1988 after noticing a demand and supply gap in the seamless pipe market. At present, the company says that the total installed capacity of its seamless plant is 3.5 lakh tonnes per annum (TPA).

During the quarter ended December 2023 (Q3 FY24), Maharashtra Seamless revenue increased by 6.9% year-on-year to ₹1,431.13 crore. Profit increased by a much sharper 60.66% to nearly ₹276 crore compared with the year-ago period.

Compared to the previous quarter ended September 2023 (Q2 FY24), the revenue declined by 6.8% and profit increased by 10.2%.