Pipe manufacturer, Maharashtra Seamless has had a successful year due to increased interest from investors and the improvement of crude oil prices. The company has doubled the investors money in the last one year.
Maharashtra Seamless sells pipes, tube and also creates renewable energy through solar and wind. They are located in Thane, Maharashtra.
Crude oil prices have helped the company, they export seamless pipes and the March and June quarters were particularly good for them as crude oil prices soared to over $100 a barrel.
“Crude oil increases cause production to increase in the US, Canada, and Middle East. The Russia-Ukraine crisis provides opportunity for suppliers of internal piping products to Europe. HDFC Securities sees strong demand from domestic pipe manufacturers continuing, as they receive more enquiries in the recent period.”
The company is part of DP Jindal which is a supplier to the oil and gas sector, as well as providing other supplies such as for power plants, furnaces, fertilizers, chemicals, pharmaceuticals, and automobile engineering.
Ukraine-Russia war creating new markets for European Countries
European countries have been trying to reduce their reliance on Russian gas imports and find new sources. Most chains of the global supply chain believe that the Russia-Ukraine war has disrupted the flow. As a result, the proposed European Union sanctions would result in more business for companies as new infrastructure is built.
Manoj Dalmia, the founder of Proficient Equities, says that it has greater potential to tap the export market. Because they have new products such as subsea pipes and premium connection pipes.
The company has large domestic clients from India, like Indian Oil Corporation, BHEL and Reliance Industries. The business is also growing.
The government has been focusing on LPG supply via pipelines to domestic markets, according to Ravi Singhal, CEO of GCL Securities.
The pipe manufacturer is expected to receive a large number of orders in the coming months from countries such as the Middle East and Europe.
HDFC claims that MSL’s business will improve in the near future because they have more exports and a greater EBITDA margin.
The shares of the seamless pipes manufacturers are going to see healthy volumes in the near future because oil prices won’t be dropping any time soon.