Defence multibagger penny stock at Rs 15.74, hit a 10 per cent upper circuit on September 26
The stock is up by 58 per cent from its 52-week low of Rs 9.91 per share and gave multibagger returns of over 1,800 per cent returns in 5 years whereas BSE Sensex Index is up by 120 per cent.
On Thursday, shares of Rama Steel Tubes Ltd hit a 10 per cent upper circuit to an intraday high of Rs 15.74 per share from its previous closing of Rs 14.31. The stock’s 52-week high is Rs 17.51 and its 52-week low is Rs 9.91.
Rama Steel Tubes Limited (RSTL) has achieved significant financial milestones. The company has successfully reduced its total sanctioned bank loan limits by INR 13.27 Crores for its wholly-owned subsidiary, Lepakshi Tubes Private Limited. This achievement demonstrates RSTL's commitment to financial stability and growth. In the past year, the company has reduced its overall sanctioned loan limits by 64.16%, which is a substantial improvement. This positive development strengthens RSTL's financial position and enhances shareholder value.
RSTL has entered into a strategic collaboration with Onix Renewable Ltd. This partnership will focus on providing steel structures and trackers for solar projects. RSTL's expertise in steel fabrication will be instrumental in delivering high-quality products that are essential for the success of renewable energy initiatives. This collaboration marks RSTL's entry into the green energy sector and aligns with the company's commitment to sustainable development. The partnership is expected to have a positive impact on RSTL's EBITA and further solidify its position in the renewable energy market.
RSTL has incorporated a wholly-owned subsidiary company, Rama Defence Private Limited. This new subsidiary will operate in the defence sector, focusing on trading, importing, exporting, manufacturing, assembling, and supplying defence equipment. The incorporation of Rama Defence Private Limited aligns with RSTL's strategic expansion plans and demonstrates its commitment to diversifying its business operations. The company expects this subsidiary to contribute to its overall growth and profitability.
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About Rama Steel Tubes Limited
Rama Steel Tubes Ltd (RSTL) established in 1974 has been India’s pioneer Manufacturer of Steel Tubes for the last 50 years. Our multi-product offerings include vast varieties of pre-galvanized tubes, structural tubes, MS black and galvanized tubes and hollow sections, making RAMA one of the leading branded steel product manufacturers in India. With our state-of-the-art manufacturing facilities spread across 4 different locations, Rama is committed to strengthening India’s infrastructural backbone.
The company have a market cap of over Rs 2,300 crore and has delivered good profit growth of 28.3 per cent CAGR over the last 5 years. The stock is up by 58 per cent from its 52-week low of Rs 9.91 per share and gave multibagger returns of over 1,800 per cent returns in 5 years whereas BSE Sensex Index is up by 120 per cent. Investors should keep an eye on this penny stock.
Disclaimer: The article is for informational purposes only and not investment advice.