Multibagger penny stock under Rs 15 to keep under radar as company expands into Defence Sector via incorporation of a wholly owned subsidiary, Details Inside!
The stock gave multibagger returns of over 1,400 per cent returns in 5 years whereas BSE Sensex Index is up by 117 per cent.
Rama Steel Tubes Ltd (RSTL) has announced plans to expand its operations into the defence sector. The company's Board of Directors has approved the incorporation of a wholly-owned subsidiary, tentatively named Rama Defence Private Limited, subject to the approval of the Ministry of Corporate Affairs. With an authorized capital of Rs 15 lakhs, the new entity will focus exclusively on the defence industry.
RSTL has clarified that there are no related party transactions involved in this venture, and the company will hold 100% ownership of the subsidiary. As this is a newly formed company, there is no acquisition cost or previous operational history to report. RSTL believes that venturing into the defence sector aligns with its strategic growth objectives and will contribute positively to the company's overall performance.
Additionally, Rama Steel Tubes Limited (RSTL) is proud to announce another significant milestone in its financial strategy. The company has successfully reduced its total sanctioned bank loan limits by an additional Rs 20 crore, representing a 6 per cent decrease over the past month. This achievement underscores RSTL's commitment to robust financial management and sustainable growth. In the last year alone, RSTL has demonstrated remarkable progress by reducing its overall sanctioned loan limits by an impressive 60.27 per cent, amounting to Rs 210 crore, from a total of Rs 348 crore. This substantial reduction includes the company's wholly-owned subsidiary, Lepakshi Tubes Private Limited.
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Established in 1974, Rama Steel Tubes stands as a leading Indian manufacturer of black and galvanized pipes, tubes, poles, and square sections, catering to diverse industries like real estate, defence, telecom, irrigation and infrastructure.
On Tuesday, shares of Rama Steel Tubes Ltd plunged 0.36 per cent to Rs 11.16 per share with an intraday high of Rs 11.50 and an intraday low of Rs 11.06. The stock’s 52-week high is Rs 16.82 and its 52-week low is Rs 9.91.
The company have a market cap of over Rs 1,600 crore with a 3-year stock price CAGR of 143 per cent. The stock gave multibagger returns of over 1,400 per cent returns in 5 years whereas BSE Sensex Index is up by 117 per cent. Investors should keep an eye on this penny stock.
Disclaimer: The article is for informational purposes only and not investment advice.
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