Is this Indian stock’s 40% drop a golden opportunity?

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Subscribe to enjoy similar stories. Once a frontrunner in India’s industrial manufacturing space, this prominent seamless pipes manufacturer has seen its stock plummet over 40% from its peak, as recent challenges strain its market position. Despite the decline, the company’s robust presence across key sectors—such as oil and gas, agriculture, and chemicals—offers a foundation for potential recovery.

With a significant order book valued at ₹17 billion as of October 2024 and strategic expansions in the pipeline, the company remains a critical player in supplying high-performance piping solutions across vital industries. Also read: These three beaten-down stocks are prime candidates for a turnaround With a commanding 55% share in India’s seamless pipe market, Maharashtra Seamless has solidified its role as a top supplier of high-quality pipes across industries, from oil and gas exploration to chemical processing and agriculture. The company’s diversification into renewable energy is also bolstering its revenue, aligning it with the global shift toward sustainability.

The flagship seamless pipes remain essential for oil and gas exploration, a sector seeing rising demand as production activities ramp up worldwide. Additionally, strong demand from industries like sugar and chemicals adds resilience against the cyclicality of oil markets. Over the last five years, Maharashtra Seamless has achieved a compound annual growth rate (CAGR) of 12.1% in revenue and a remarkable 36.4% in net profit.