Stock Under Rs 15: After Defence Company Announces Expansion into Green Energy Sectors with New Associate Company ORAM Green Energy!
The company’s shares have delivered an impressive return of over 1,800 per cent in the past 5 years.
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.
According to the press release, Rama Steel Tubes has incorporated an associate entity named ORAM Green Energy Limited, with an authorized capital of Rs 5 crore. The associate company will operate in the Green Energy/Renewable Energy sector. Rama Steel Tubes will hold a 40 per cent stake in ORAM Green Energy, with the acquisition made in cash. The incorporation marks Rama Steel Tubes' strategic entry into the renewable energy business, complementing its existing operations.
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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.
Today, the shares of Rama Steel Tubes closed at around Rs 14.30 per share on the BSE. The company’s current market capitalization stands at Rs 2,140 crore. Additionally, the shares have delivered an impressive multibagger return of over 1,800 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.
Disclaimer: The article is for informational purposes only and not investment advice.