Maharashtra Seamless is in the limelight today morning. After 6 days on consecutive fall, the stock opened over 3% higher at Rs.371, going up almost 4% at Rs.373. Its 20% UC for the day is at Rs.431.45.
The stock is up after the company stated that it has secured a Rs.500 crore order from ONGC.
Last year same time, 5th Dec 2018, the company had got a Rs.920 crore order from ONGC and looks like this has become an annual ritual for the company.
The company as such enjoys a market share of 35-40%. MSL is almost debt-free and has healthy cash flow from its operations for availing working capital facilities.
There are only four manufacturers of finished casing and tubing namely, MSL, OCTL, Jindal Saw Limited and ISMT Limited. MSL has both, a manufacturing facility for producing green pipes, and a processing and finishing facility for turning those green pipes into finished products. Therefore, it does not have to procure green pipes separately.
MSL, OCTL, ISMT Limited and Jindal Saw Limited are the only registered domestic bidders with ONGC and OIL for supply of seamless casing.