Shares of this small-cap steel tube manufacturing company delivered over 120% returns in the last 1 year!

Shares of this small-cap steel tube manufacturing company delivered over 120% returns in the last 1 year!

by 5paisa Research Team Last Updated: Mar 20, 2023 - 02:26 pm 239 Views

An investment of Rs 1 lakh in the shares of this company one year ago would have turned to Rs 2.2 lakh today.

Rama Steel Tubes Ltd, an S&P BSE SmallCap company, has delivered multibagger returns to its shareholders in the last one year. During this period, the company’s share price jumped from Rs 13.26 on 22 March 2022 to Rs 29.83 on 17 March 2023, an increase of 124% in the one-year period.

An investment of Rs 1 lakh in the shares of this company one year ago would have turned to Rs 2.2 lakh today.

Recent performance highlights-

In the recent quarter Q3FY23, the company’s net revenue increased by 89.34% YoY to Rs 350.25 crore on a consolidated basis. Similarly, the bottom line increased by 16.20% YoY to Rs 6.40 crore.

The company is currently trading at a TTM PE of 57.45x, as against the industry PE of 12.95x. In FY22, the company delivered an ROE & ROCE of 24% and 20% respectively. The company is a constituent of Group A stocks and commands a market capitalization of Rs 1,370.92 crore.

Share price movements

Today, the scrip opened at Rs 30.13 and has touched a high and low of Rs 30.43 and Rs 29.33, respectively. So far 24,767 shares have been traded on the bourses.

At 1.45 pm, the shares of Rama Steel Tubes Ltd were trading at Rs 30.06, an increase of 0.77% from the previous closing price of Rs 29.83 on BSE. The stock has a 52-week high & low of Rs 46.10 and Rs 12.24 respectively on BSE.

Company Profile 

Rama Steel Tubes Limited is a leading player engaged in the manufacturing and trading of Steel Tubes & Pipes and Rigid PVC (Poly Vinyl Chloride) & G.I. (Galvanised Iron) Pipes in India as well as in the world. With more than four decades of experience in the Indian steel tubes and pipes market, the Company has established its strong brand equity globally. The Company has state-of-the-art manufacturing facilities located in North, South and West India, which provide a strategic advantage to gain a significant hold over the respective market regions. The company’s niche product comprises ERW (electric resistance weld) Black Pipes and Galvanised Steel Pipes. 

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