Rama Steel Tubes Shares Surge 13% Amidst Market Fluctuations

Jaipur, 06/09/2024: In a noteworthy development, Rama Steel Tubes Limited has seen its share price soar by 13% today, reaching Rs 15.4. This increase comes as the stock opens at Rs 14.74, significantly up from its previous closing price of Rs 13.87. The recent surge places Rama Steel Tubes closer to its 52-week high of Rs 16.83.

Despite this impressive gain, the broader BSE METAL index, which tracks the performance of metal stocks, is slightly down at 31,489.2, marking a decline of 0.1%. Within the index, some of today’s top gainers include APOLLO TUBES, which is up by 1.2%, and Vedanta, which has risen by 0.3%. Conversely, Coal India and SAIL are among the day’s notable losers, down by 1.0% and 0.6% respectively.

Over the past year, Rama Steel Tubes has demonstrated substantial growth, with its share price rising from Rs 12.9 to Rs 15.4, reflecting a gain of Rs 2.4, or 18.7%. This is in contrast to the broader BSE METAL index, which has risen by 36.0% from 23,156.1 to 31,489.2 during the same period. Top performers within the index over the last year include Coal India, up by 98.7%, Vedanta, up by 93.7%, and NMDC, which has seen a 53.5% increase.

Also Read: Rama Steel Company – A Leading Name in the Steel Industry

Financial Snapshot:

• Market Cap: ₹2,111 Crore
• ROE: 8.69%
• P/E Ratio (TTM): 73.16
• EPS (TTM): 0.19
• P/B Ratio: 6.35
• Dividend Yield: 0.00%
• Industry P/E: 24.06
• Book Value: 2.19
• Debt to Equity: 0.43
• Face Value: 1

Recent Financial Performance:

For the quarter ended June 2024, Rama Steel Tubes reported a 3.6% decline in net profit to Rs 62 million, compared to Rs 64 million in the same period last year. Net sales also dropped by 30.7% to Rs 2,166 million, down from Rs 3,125 million in April-June 2023. For the fiscal year ended March 2023, the company saw a marginal increase in net profit by 0.4%, totaling Rs 274 million, up from Rs 273 million in FY22. Revenue for FY23 grew substantially by 74.0% to Rs 13,368 million.

The company’s current Price-to-Earnings (P/E) ratio stands at 80.6 based on rolling 12-month earnings.

Shareholding Pattern:

• Promoters: 56.33%
• Retail and Others: 43.62%
• Foreign Institutions: 0.05%

About Rama Steel Tubes:

Rama Steel Tubes Limited is an India-based manufacturer and trader of steel pipes. The company specializes in electric resistance weld (ERW) steel tubes, including black and galvanized options. Its products find applications in various industries, including automotive, real estate, and furniture. The company’s manufacturing facilities are located in North-Sahibabad (Uttar Pradesh), South-Anantpur (Andhra Pradesh), and West-Khopoli (Maharashtra).

The notable surge in Rama Steel Tubes’ share price today highlights investor confidence, despite overall market fluctuations. The company’s strategic growth and operational focus continue to make it a significant player in the steel industry.