2023 Diwali pick: Ratnaveer Precision Engineering Limited

Ratnaveer Precision Engineering a recently listed company is my 2023 Diwali pick for my valuable blog follower s.IPO had come at around Rs 98 price.

It is India’s leading stainless steel washers manufacturer & supplier manufacturing  around 4000MT PA.Stanless steel is becoming more popular because of its anti corrosion property and food safety in the food ,engineering 

Company has recently registered a business unit in Dubai UAE,which indicates company's Long term vision to expand.

1. Ratnaveer produce more than 2500 washers in different sizes and international standards.

Apart from special washers & nuts they also manufacture 

2. stainless steel sheets(used elevators,malls,Pharma & food packaging industries)

3. stainless Steel pipes and tubes.

4. solar mounting hooks.

Product applications:

Products find application in  escalators, conveyors, bus stands,malls, food, Pharma packaging machines, solar panels etc.

All products have rising demand for domestic & export 

 During the last five years, the company is regularly expanding its infrastructure and facilities and has achieved a decent Compound annual growth and targeting to achieve 850+crores turnover in next 2 years through capacity expansion.

Fundamentals

Current Mcap : Rs581 crores 

ROE:28%

PE : 15

Financials:

Post listing company has delivered H1 results and achieved turnover of 260 crores and earned EPS of 3.97 in H1 resulting in a 17% growth over the previous year .On an estimated basis the company should deliver revenue of Rs540 -550 crores in FY23-24 at conservative EPS estimate of 9 the stock is available at forward multiple of around 14 .

Companies which are into precision steel component manufacturing such as Rolex,Harsha, steel tube manufacturers enjoys much higher PE multiples in current scenario.

Application of products is very wide and in diversified industries makes it A proxy to engineering, industrial,solar panel(Renewables),auto, etc 

Looking at growth potential and expected margins improvement in future stock looks very attractive my target price by next Diwali 🪔 is Rs170.

Long term investors may consider investing & add on dips..

Happy Diwali 🪔

Happy investing