115% returns: This multibagger engineering company bags an order for Rumaila Project (Iraq)!

Sealmatic India Limited specializes in the design and production of mechanical seals and related products. The company holds a prominent position as a leading designer and manufacturer of mechanical seals utilized in a wide spectrum of industries, including Oil & Gas, refinery, petrochemical, chemical, pharmaceutical, fertilizer, power, mining, pulp & paper, aerospace, marine, and various other sectors. 

Sealmatic India Limited has recently secured a highly esteemed order. This order involves the supply of 38 API mechanical seals, along with API Plans, for the prestigious Rumaila Project situated in Iraq. The Rumaila Project is renowned for being one of the world’s super-giant oilfields, characterized by the presence of over a billion barrels of recoverable oil. Current estimates suggest that there are still approximately 17 billion barrels of recoverable oil within the reservoirs of Rumaila. 

The management of the Rumaila Project is overseen by the Rumaila Operating Organization (ROO), a Joint Venture established through collaboration between BOC, Basra Energy Company Limited (BECL), and Oil Marketing Company (SOMO). The primary objective of ROO is to elevate Rumaila into a world-class operation, ultimately serving the nation of Iraq and its populace. 

It is important to highlight that the operations at Rumaila are predominantly carried out by Iraqi personnel, with around 6,800 Iraqis employed as ROO staff. Additionally, an estimated 22,000 Iraqis are engaged through various contractors who support the extensive supply chain activities associated with Rumaila. A small fraction, approximately 5%, of the workforce comprises international staff from around the globe, contributing their expertise gained from other oilfields to enhance Rumaila’s operations. 

The company has delivered stellar returns of 116% since its listing in March 2023. Moreover, the company boasts a Return on Capital Employed (ROCE) of 26.6% and a Return on Equity (ROE) of 20.1%. 

On Wednesday, shares of the company surged by over 4%, reaching an intraday high of Rs 510.  

Investors should keep a close eye on this trending stock. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.