Nuclear energy stock surged by 4% due approval from Kuwait Petroleum Co
Nuclear energy stock : During Tuesday’s trading session, the shares of Sealmatic India Limited, a micro-cap company specializing in the manufacturing of seals and pumps, surged nearly 4.2 percent to reach an intraday high of Rs. 550 on the BSE. This increase came after the company announced that it had secured approval from Kuwait Petroleum Company.
With a market capitalization of Rs. 477 crores, as of 01:55 p.m., Sealmatic India Limited’s shares were trading in the green at Rs. 532, up by approximately 0.8 percent compared to its previous closing price of Rs. 528.15.
The recent regulatory filings with the stock exchanges revealed that Sealmatic India Limited had received approval from Kuwait Petroleum Company (KPC), the parent company of various subsidiaries such as KIPIC, KPI, KUFPEC, KGOC, KOC, KNPC, PIC, KOTC, and others. This certification highlights Sealmatic’s commitment to innovation, quality, and reliability within the global oil and gas industry, positioning the company to support KPC and Kuwait’s ambitious energy goals.
As Sealmatic continues to set industry standards, the approval from KPC further solidifies its leadership in providing advanced sealing solutions for the oil and gas sector.
Kuwait currently has an oil production capacity of 2.9 million barrels per day, with plans to increase to 3.2 million barrels per day by 2026. KPC and its subsidiaries, including Kuwait Oil Company (KOC), are spearheading several major projects in the country. KOC aims to boost its oil production capacity to 3.65 million barrels per day by 2035, generating an additional $11 billion in state revenue over the next five years.
KOC, responsible for around 90 percent of Kuwait’s oil production, also has a goal to achieve a daily gas production capacity of 1.5 trillion cubic feet by 2040.
Latest Updates:
On December 30, 2024, Sealmatic announced a significant step towards global expansion by forming a strategic partnership with ValueTech Engineering Technologies in Egypt. This partnership aims to meet the diverse needs of customers in Egypt and across Africa by providing Sealmatic’s renowned standards of excellence.
Following this success, on January 6, 2025, Sealmatic India revealed another strategic collaboration with Fluiten OOO to cater to the varied demands of Russian industries. This partnership will focus on delivering top-notch mechanical sealing solutions to the Russian market, emphasizing the sale, repair, and refurbishment of Sealmatic mechanical seals.
Financial Highlights:
Sealmatic India reported a modest revenue growth of nearly 19 percent year-on-year, increasing from Rs. 37 crores in H1 FY24 to Rs. 44 crores in H1 FY25. However, the company’s net profit saw a slight decline from Rs. 6.6 crores to Rs. 6.5 crores over the same period, representing a marginal decrease of around 1.5 percent YoY.
Stock Performance:
Despite delivering negative returns of approximately 2.5 percent over the past year, Sealmatic India’s stock has shown promising returns of around 24 percent in the last six months. However, in the last month, the shares have experienced negative returns of about 6 percent.
Company Overview:
Established in 2009, Sealmatic India Limited specializes in manufacturing a wide range of mechanical seals, seal supply systems, pumps, valves, motors, and high-precision mechanical engineering spares and assemblies for various machinery used primarily in the Oil & Gas Industry. In 2023, Sealmatic was honored with the ISO 19443 certification for nuclear applications, making it the sole mechanical seal company in India to achieve this prestigious recognition.
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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.