Shares of one of the pioneer and leading manufacturers in the steel tube and pipe business gained 8 percent to Rs 42.25 on Tuesday’s first half session following announcement of strategic partnership with JSW Steel,
At 3:05 p.m., Rama Steel Tubes ltd shares were trading at Rs 40.30 per share, up 2.81 percent.
According to company’s BSE filings, Rama Steel Tubes(RSTL)has entered into a strategic Memorandum of Understanding (MoU) with JSW Steel Group, The MoU will aid in the procurement of Hot Rolled Coils (HRC) used in the production of RSTL’s steel tubes and pipes, the distribution of HRCs produced by JSW Steel in the western region, and the production of a value-added product, pre-galvanized pipes, in collaboration with JSW Steel Coated Products Ltd.
The MoU will enable RSTL to get 1,00,000 tons of HRC from JSW Steel on a pan-India basis to assist the manufacture of different steel tubes and pipes. The MoU will provide RSTL better control over its procurement and supply chain while resulting in competitive raw material costs.
Further, RSTL has signed with JSW Steel Coated Products Ltd to produce 200,000 tons per year of high-value, pre-galvanized pipes under the style and brand name “JSW Kalinga” for western area.
Rama Steel Tubes Ltd manufactures Steel Pipes & Tubes, Rigid PVC & G.I. Pipes, and square section products in India and the firm has a global presence in over 16 countries.
The company’s share price climbed from Rs 15.98 to current values during the last year, yielding multibagger returns of 152%. As a result, if an investor purchased 1 lakh company shares in the previous year, their holding is now worth 2.52 lakhs!
Company’s revenue surged by 74 percent year on year to 1,336 crore in FY 22-23, while net profit improved by 7 percent to Rs 27 crore. It has a 0.77 debt-to-equity ratio.
Currently, promoters control 63.91 percent of the company, while retail investors own 33.3 percent.
Written by Omkar Chitnis
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