Shares of a pioneer and leading manufacturer in steel tubes and pipes surged by 1.07 percent on BSE to hit an intraday high at Rs. 11.25 in the trading session of Wednesday.
With a market capitalisation of Rs. 1,667.7 crores, the shares of Rama Steel Tubes Limited closed in the green at Rs. 11.18, up by 0.45 percent, as against its previous closing price of Rs. 11.13.
What’s the News:
On 14th August, Rama Steel Tubes Limited (RSTL) informed the stock exchanges regarding the company’s Board approval for the incorporation of a wholly-owned subsidiary of the company in the name of “Rama Defence Private Limited” by the Ministry of Corporate Affairs.
The proposed wholly-owned subsidiary company will be incorporated in India and operate in the field of the Defence Sector.
Additionally, on 16th August, RSTL announced the successful reduction in its total sanctioned Bank Loan Limits by Rs. 20 crores, representing a 6 percent decline of the total existing sanctioned limits over the month.
Over the past year, the company has reduced its total sanctioned loan limits by 60.27 percent, amounting to a reduction of Rs. 210 crores against the overall total sanctioned loan limit of Rs. 348 crore.
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Financials:
The company experienced a fall in its consolidated revenue from operations, showing a year-on-year decline of nearly 30.7 percent from Rs. 312.5 crores in Q1 FY23-24 to Rs. 216.6 crores in Q1 FY24-25.
Similarly, its net profit decreased during the same period from Rs. 7.5 crores to Rs. 6.2 crores, indicating a decline of 17.3 percent YoY.
RSTL has a subsidiary in UAE and a step-down subsidiary in Nigeria which has strengthened the company’s presence in global markets.
Shareholding Pattern:
As per the June 2024 shareholding pattern, the Promoters hold a 56.33 percent stake in the company, Foreign Institutional Investors (FII) hold a 0.05 percent stake, while Retail Investors hold a 43.61 percent stake in Rama Steel Tubes.
Stock performance:
The stock has delivered negative returns of nearly 12 percent in one year as well as around 22.8 percent returns in the last six months. So far in 2024, the shares of Rama Steel Tubes have given about 7.7 percent of negative returns.
About the company:
Established in 1974, Rama Steel Tubes Limited is engaged in the business of manufacturing of steel pipes and tubes and related products. It is a pioneer and a leading manufacturer of steel pipes, G.I. (Galvanized Iron) pipes and tubes in India.
RSTL has a 20 percent export rate, with a global presence in more than 16 countries, and currently has an aggregate capacity of 2.94 lakh MTPA. It has 4 manufacturing capabilities located at Sahibabad (U.P.), Khopoli (Maharashtra) and Anantapur (Andhra Pradesh).
Written by Shivani Singh
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