PRADEEP METALS LTD (513532) - STOCK OF THE WEEK

Dear Investor friends, Today I am expressing my opinion on metal/engineering company

PRADEEP METALS LTD (513532)

Pradeep Metals Limited is an India-based ISO 9000 company engaged in manufacturing of steel products. The Company offers components for process control equipment and components for valves. The Company is engaged in manufacturing of closed die forgings and processing. Its products include material grades, valves, gears and automotive, manifolds, forged flanges and general engineering. 

The Company offers intricate closed die stainless, alloy and carbon steel forgings as finished and semi-finished machined components. The Company offers its products to its customers in the United States, the United Kingdom, Singapore, Sweden, Denmark, France, Germany, Mexico and Argentina. Pradeep metals serves various industries, such as instrumentation, oil and gas, and petro-chemical. 

The Company's plant is located at Rabale, Navi Mumbai. The plant is integrated with various facilities for design, die tooling, laboratory testing, cutting, forging, heat-treating and machining.

PRODUCTS

Company Products are fall under mainly following groups.

1.    Forged Flanges

2.    Valves

3.    General Engineering product

4.    Manifolds

 Forged Flanges.

Forged Flanges are widely used in all types of industries. These products are connecting to pipelines where different kinds of fluids/liquids are conveyed.

Valves & Components

In this category company have different kinds of valves ex. Ball valves Check valves etc.

General Engineering Products

Company manufactures different kinds of clamps, fittings in this segment.

Manifolds

These are pipe fittings products are used in piping manifolds. Manifolds products are also used in gear transmissions.  

USA FACILITY

Company is having its manufacturing facility in USA, named as Dimensional Machine works.

Company website: Click here

FINANCIALS AND OUTLOOK

Company shares are trading in BSE.

Promoter holding: 72.2 % as on sept qtr.

Company posted 36.22 Cr top line in sept Qtr.

Net profit is 1.75 Cr bottom-line in sept Qtr.

Operating margins were improved

Stock is trading at Rs 96

PE is low as compared peers as well as industry.

Company is mainly engaged in the business forged and engineered metal products for various industries. The domain segment is in the rapid growth phase, will be a huge positive for the company.

By considering above, and performance of the company over QOQ in both topline & bottom lines have shown significant growth. With this company investors will enjoys handsome returns in future.

NOTE : THE ABOVE IS NOT A RESEARCH REPORT NOR A RECOMMENDATION  BUT INFORMATION AS AVAILABLE ON PUBLIC DOMAIN. 

Registration status with SEBI: I am not registered with SEBI under the (Research Analyst) regulations 2014 and as per clarifications provided by SEBI: “Any person who makes recommendation or offers an opinion concerning securities or public offers only through public media is not required to obtain registration as research analyst under RA Regulations”