Rama Steel Tubes shares extend gains after Q3 results

Rama Steel Tubes shares extended their gains on Thursday as the metal has been rising higher lately, particularly after announcing its results for the period ended on March 31, 2023. The stock has generated multibagger returns to investors in the last year.

Rama Steel Tubes posted a 58 per cent increase in the consolidated net profit for March 2023, compared to a net profit of Rs 7.4 crore in the year ago. In the December 2022 quarter, the company reported a net profit of 7.8 crore.

Revenue from Rama Steel Tubes rose about 59 percent YoY to Rs 399.24 crore for the three months ended March 31, 2023. In the year-ago period, the company had a revenue of 251.9 crore and in the three months ended December 31, 2020, it had a revenue of 350.25 crore.

Rama steel shares have rallied about 15 per cent in the last five sessions, as the stock rose to 40.75 from 40.75 on Thursday. The company is boasting a market capitalization of 1,856 crore. In three weeks, the stock has surged more than 30 per cent from its value of Rs 31.3 on May 11.

Rama Steel shares have risen 205 percent from their 52-week low of 13.32 on June 6th, 2022. The stock has surged 4,000 per cent in the last three years from its price adjusted to Re 1 on June 1, 2022. It is up 20 per cent in the past six months.

For the entire financial year 2022 - 23, Rama Steel Tubes net profit remained almost flat to Rs 27.44 crore, compared to Rs 27.32 crore in the last year. The company's revenue from operations increased 75 per cent to Rs 1,336. During the period under review, the company had a net worth of Rs. 75 crore.

Rama Steel Tubes, established in 1974, is a company based in New Delhi that works in the steel pipes and tubes industry, with a installed capacity of 2,64,000 metric tons per annum. In addition to the United States, the UK, UAE, Sri Lanka, Ethiopia, Kenya, Uganda, Ghana, Kuwait, Republic of Congo, Yemen, Guyana, Germany and South Africa, the company has a worldwide presence.

The company had announced its stock split ratio 1: 5 ratio in August 2022, where each stock of the company with a face value of Rs 5 was divided into five shares of Re 1 each. The company also announced a bonuses in 4: 1 ratio for investors, implying that the evey investor received additional four shares of the company for each share held by them.