Ratnaveer Precision Engineering reached a new all-time high of ₹167 per share in today's session, gaining 3.2%. Over the past 8 sessions, the stock has surged 32%, and it has increased by 39% in the current month so far.In its recent note, domestic brokerage firm ICICI Direct Research has initiated coverage on the stock, assigning a 'buy' rating with a target price of ₹200 apiece, which indicates an upside of 24.22% from the stock's previous closing price.The Gujarat-based stainless steel (SS) product manufacturer offers a diverse portfolio, including SS finished sheets, washers, solar roofing hooks, pipes, and tubes, which are widely used across numerous industries.
The brokerage believes the company is well-positioned to benefit significantly from the buoyant industrial capex cycle.It highlighted that the company's SS sheet portfolio, in particular, boasts a wide range of finishes and applications in sectors such as architecture, construction, automotive, transport, food, process industries, and aerospace. The material's corrosion resistance and customisable finishes have boosted its usage, with demand growing at a CAGR of 13% over the past 5–6 years.Also Read: Nifty Bank hits fresh high, crosses 53,000 mark as it continues winning streak for 4th day in a rowIndustry reports predict a continued healthy demand growth of 10-12% CAGR over the next 5 years, driven by increasing use in elevators, escalators, commercial kitchens, bus bodies, and metro and railway coaches.The demand for SS washers is expected to be driven by buoyant industrial capex, including sectors like automobiles, chemicals, oil & gas, fertilisers, pharma, petrochemicals, power, seawater equipment, and other engineering applications.
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