Defence Stock Under Rs 15: Announced Strategic Partnership with Onix Renewable – Stock Surges Over 15 Per cent Volume Surged by 4.72 Times on BSE!
The company’s shares have delivered an impressive return of around 1500 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.
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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Furthermore, announced a strategic partnership with Onix Renewable Ltd. This collaboration will leverage RSTL's expertise in providing specialized steel structures and single-axis trackers, with plans to expand into dual-axis trackers for Onix's solar projects. By entering the Green Energy segment, RSTL is committed to delivering reliable, durable, and high-performance products essential for the success of solar greenfield projects.
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Today, the shares of Rama Steel Tubes closed at around Rs 11.59 per share on the BSE. The company’s current market capitalization stands at Rs 1761.82 crore. Additionally, the shares have delivered an impressive return of over 1,500 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.