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We remain structurally positive on Ratnamani Metals Tubes (RMTL) but retain our Hold rating with a revised TP of Rs940 (vs Rs970 earlier) on the back of limited upside potential with strong growth outlook fully factored in at current valuations. Q1 performance was on expected lines with strong EBITDA growth but margin remaining under check led by higher share of CS segment. We continue to believe in RMTL’s long term growth story, with expected strong domestic capex over FY19 22E and completion of expansion in the high margin SS business by Q4FY19E..

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