Rama Steel Tubes Share Price can remain between 14 to 18 September 18, big momentum can come after the break
Rama Steel Tubes Ltd., a leading manufacturer of steel pipes and tubes, saw its share price surge by 17% today to reach ₹15.50 on the back of strong quarterly results. The company reported a robust performance, with its consolidated net sales for the quarter ending June 2024 at ₹158.30 crore, despite a 27.81% year-over-year decline.
Main Points
Key Highlights of Rama Steel Tubes’ Q1 FY2024 Results
- Consolidated net sales of ₹158.30 crore, down 27.81% YoY
- Standalone net sales of ₹207.70 crore, down 38.36% YoY
- Consolidated net sales for FY2024 at ₹268.27 crore, down 32.8% YoY
- Stock generated a 3-year return of 342.38% compared to Nifty Smallcap 100’s 84.96%
Rama Steel Tubes’ share price has been trading in a range between ₹9.90 and ₹17.60 over the past 52 weeks. The stock is currently trading above its key moving averages, with the 50-day moving average (50DMA) and 200-day moving average (200DMA) providing support at ₹12 and ₹0, respectively.
The stock has recently broken out of a base in its weekly chart but failed to maintain its momentum, currently trading around 16% below its pivot point. The company’s beta of 2.96 indicates high volatility compared to the broader market.
Rama Steel Tubes has a market capitalization of ₹2,547.38 crore as of September 11, 2024. The company’s stock trades at a price-to-earnings (P/E) ratio of 87.92 and a price-to-book (P/B) ratio of 6.22.
In comparison, the steel industry has a median P/E ratio of 20.5 and a median P/B ratio of 1.5. Rama Steel Tubes’ higher valuation multiples suggest that the market expects strong growth from the company going forward.
Institutional Holding and Promoter Ownership
Institutional holding in Rama Steel Tubes has increased in the last reported quarter, which is a positive sign for the stock. However, promoter holding has decreased by 0.37% over the same period.
Analysts remain cautiously optimistic about Rama Steel Tubes’ future prospects. The company’s strong earnings growth over the past five years (28.3% CAGR) and reduced debt levels are positive factors. However, the lack of dividend payouts and the recent decrease in promoter holding are concerns that investors should monitor.
The steel industry is expected to benefit from the government’s focus on infrastructure development and the revival of the manufacturing sector. Rama Steel Tubes, being a key player in the steel pipes and tubes segment, is well-positioned to capitalize on these growth opportunities.
Disclaimer: The information given in this article is from investment experts and brokerage companies, they do not represent Local Haryana. Before taking any investment related decision, you must consult a certified expert.
