One of the small-cap stocks engaged in manufacturers of steel pipes & tubes, rigid PVC & G.I. pipes, and square section products in India. The stock is in focus after acquiring a 24.80% stake in Bigwin Buildsys Coated Private Limited for Rs. 5.65 crore
Stock Price Movement:
In Thursday’s trading session, Rama Steel Tubes Limited’s share plunged by 1.35 percent from the previous close of Rs. 13.37. The stock opened at Rs. 13.37 and is currently trading at Rs. 13.19, with a high of Rs. 13.38 and a low of Rs. 13.15. The market capitalization now stands at approximately Rs. 2,050.03 crore.
What Happened:
Rama Steel Tubes Limited will acquire a 24.80% stake in Bigwin Buildsys Coated Private Limited for Rs. 5.65 crore through a share swap. This acquisition diversifies Rama Steel’s business into green energy solutions, particularly solar structures, and establishes Bigwin Buildsys as its associate company, strengthening its position in the renewable energy sector.
Products Offering:
Rama Steel Tubes offers a diverse product range, including MS ERW black pipes, G.I. pipes, hollow sections, pre-grooved and casing pipes, and light poles. It also provides customizable solutions with anti-rust coatings, ensuring high-quality, application-specific delivery.
Global Presence
Rama Steel Tubes exports 20% of its production to 16 countries, including the USA, Germany, and South Africa. Advanced technology, like Japan’s Kusakabe tube mill, ensures quality, supporting global expansion and competitiveness.
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Recent quarter results and ratios:
Rama Steel Tubes Limited’s revenue has increased from Rs. 203.33 crore in Q2 FY24 to Rs. 263.05 crore in Q2 FY25, which has grown by 29.37 percent. The net profit of Rama Steel Tubes Limited is down by 34.5 percent, from Rs. 6.58 crore in Q2 FY24 to Rs. 4.31 crore in Q2 FY25.
Rama Steel Tubes Limited’s revenue and net profit have grown at a CAGR of 15.75 percent and 30.26 percent, respectively, over the last five years.
In terms of return ratios, the company’s ROCE and ROE should be 12.4 percent and 9.96 percent, respectively. The debt-to-equity ratio of the company is to be 0.27x, which shows the company is almost debt-free. Rama Steel Tubes Limited’s EPS is to be Rs. 0.17.
Shareholding pattern
In September 2024, Rama Steel Tubes Limited had a majority stake held by the promoters at 47.97 percent, foreign institutional investors at 0.17 percent, and the public at 51.87 percent.
Company Overview:
Rama Steel Tubes Limited was established in 1974 by Sh. H.L. Bansal and is a prominent Indian manufacturer specializing in steel pipes, tubes, rigid PVC, G.I. pipes, and square section products. With a strong legacy of quality and reliability, the company has positioned itself as a leading player in the steel industry.
Written By – Nikhil Naik
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