Defence Stock Under Rs 20 with 1,700 Per cent Returns: Company Announces Rs 13.27 Crore Reduction in Bank Loan Limits, Achieving 64.16 Per cent Decrease Over a Year!
The company’s shares have delivered an impressive return of around 1,700 per cent to its shareholders.
This Small-Cap company is a leading manufacturer of steel pipes and tubes, Rigid PVC and G.I. pipes, and square section products in India.
The company has announced a successful reduction in the total bank loans of its wholly owned subsidiary, Lepakshi Tubes Private Limited. Through effective financial management and strategic decision-making, RSTL has lowered the total sanctioned bank loan limits by Rs 13.27 crores for Lepakshi Tubes. Over the past year, the company has achieved an impressive 64.16 per cent reduction in total sanctioned loan limits, decreasing from Rs 348.00 crores to Rs 223.27 crores, including those of Lepakshi Tubes Private Limited.
Recently, Rama Steel Tubes announced that its wholly-owned subsidiary, "Rama Defence Private Limited," was incorporated on August 31, 2024, with the certificate of incorporation received on September 2, 2024, from the Ministry of Corporate Affairs. This new subsidiary will operate in the defence sector, focusing on the trading, importing, exporting, manufacturing, assembling, and supplying of defence equipment, arms, ammunition, explosives, and related military and security hardware.
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Today, the shares of Rama Steel Tubes closed at around Rs 15.25 per share on the BSE. The company’s current market capitalization stands at Rs 2282.41 crore. Additionally, the shares have delivered an impressive return of over 1,700 per cent in 5 years.
As per the Quarterly Results, in the Q1 FY25, Rama Steel Tubes recorded a revenue of Rs 216.64 crore compared to Rs 312.52 crore. It reported an operating profit of Rs 11.41 crore. The net profit stood at Rs 6.20 crore. Looking at the annual performance, the company generated a revenue of Rs 1047 crore in FY24 compared to Rs 1337 crore. The operating profit for FY24 was Rs 59 crore with a net profit of Rs 30 crore compared to a profit of Rs 27 crore in FY23. The last bonus that Rama Steel Tubes announced was in 2024 in the ratio of 2:1. The share has been quoting ex-bonus from March 19, 2024.
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Investors must keep this stock on their radar.
Disclaimer: The article is for informational purposes only and not investment advice.