Shares of Rama Steel Tubes jumped 5 percent on July 4 after the company posted a robust 62 percent on-year growth in sales volume for the first quarter of FY24.
The company sold 48,437.69 tonnes of structural steel tubes in Q1, compared to 29,833.96 tonnes a year back.
The company has been increasing sales, share of value-added products, innovating new products, and has been aggressively focussing on cost optimisation.
Though the scrip came off its day’s high and at 12:57pm, shares of the company traded at Rs 36.88, up 0.8 percent, on the BSE.
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In 2015, the stock price was Rs 3, which means a return of 1,097 percent till now. FIIs and the promoter have increased their holding in the stock, whereas public investors have been trimming their stake.
In January, Brickwork Ratings downgraded the long-term and short-term ratings of the bank loan facilities of Rama Steel Tubes to 'BBB-'/Stable and A3, and simultaneously withdrew it.
The downgrade in ratings factors in the decline in profitability, moderation in debt coverage indicators during first half of FY23 and limited available information for review at the time of withdrawal of ratings, the ratings agency said.
The operating profit and net profit of the company declined to Rs 13.98 crore and Rs 9.36 crore, respectively, during the first half of FY23 as against Rs 16.49 crore and Rs 14.19 crore, respectively, last fiscal.
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