During Friday’s trading session, the shares of a company engaged in manufacturing stainless steel pipes and tubes hit a 2 percent upper circuit and hit a new 52-week high at Rs. 13.23 on BSE, after the company announced entering into the Renewable energy business.
With a market capitalisation of Rs. 13.2 crores, the shares of Umiya Tubes Limited opened in the green at Rs. 13.23, as against its previous closing price of Rs. 12.98.
What’s the News:
According to the latest regulatory filings with the BSE, the Board of Umiya Tubes Limited, in its meeting held on the 3rd October, approved the substitution of the existing Main Objects clause of the Memorandum of Association (MOA) of the company.
The new line of business will focus on Renewable Energy, including Solar Energy. The adoption of this new line of business is expected to benefit all stakeholders of the company.
Additionally, an initial equity contribution of nearly Rs. 10 Crores will be raised through the preferential allotment of equity shares or convertible warrants.
Financials:
The company reported a marginal decrease in the revenue from operations, experiencing a year-on-year decline of nearly 2.7 percent, falling from Rs. 0.36 crores in Q1 FY24 to Rs. 0.35 crores in Q1 FY25.
Similarly, during the same period, the company’s net loss increased from Rs. 1.05 crores to Rs. 1.6 crores, representing a decline of around 52.4 percent YoY.
Stock Performance
The stock has delivered multibagger returns of nearly 120.5 percent of returns in one year, and 96 percent of positive returns in the last six months. So far in 2024, the shares of Umiya Tubes have given multibagger returns of about 105 percent.
About the Company:
Umiya Tubes Limited is primarily engaged in the business of manufacturing stainless steel pipes and tubes through the production units located in Talod, Sabarkantha (Gujarat), with a total installation capacity of 3,600 MTPA as of 31st March 2021. The company began operations with a production capacity of 2,040 MTPA in FY14.
However, due to financial constraints and the need to repay an outstanding loan to the bank, Umiya Tubes decided to sell its manufacturing unit and assets, with the necessary approvals from the Board of Directors and the company members at an Extraordinary General Meeting held during FY24.
Following the end of FY24, the sale was completed, and all dues to the bank were fully paid off. The company’s activities are now limited to trading, which has remained subdued due to limited available funds. The company plans to develop a strategy to enhance its trading activities in the future.
Written by Shivani Singh
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