2,900 per cent returns: This multibagger stock attracts heavy buying as Societe Generale acquires stake in the company!
The stock gave multibagger returns of 595 per cent in just 2 years.
Rama Steel Tubes Ltd (RSTL), is a pioneer and a leading manufacturer of steel pipes, G.I. pipes and tubes in India. As per bulk deal data available on BSE, Societe Generale, a Foreign Institutional Investor (FII) picked up 60,00,000 shares in Rama Steel Tubes on 18 July 2023, at an average price of Rs 38.17 per share aggregating to Rs 22.90 crore.
The company has also inked a strategic Memorandum of Understanding (MoU) with JSW Steel Group. The purpose is to procure hot rolled coils (HRC), distribute HRCs in the western region, and manufacture value-added products, such as pre-galvanized pipes, in agreement with JSW Steel Coated Products Ltd. The partnership will enable RSTL to have greater control over its procurement, supply chain, and raw material costs, while also expanding its product portfolio and reaching new markets.
The MoU will facilitate RSTL to procure 1,00,000 tons of hot rolled coils (HRC) on a pan-India basis. The MoU will enable RSTL to have greater control over its procurement, supply chain, and raw material costs. It will also establish RSTL as an official distributor of JSW Steel for HRC in the entire western region. Additionally, RSTL has entered into an agreement with JSW Steel Coated Products Limited to produce 200,000 tons per annum of high-value, pre-galvanized pipes under the style and brand name of "JSW Kalinga" for the western region.
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On Tuesday, shares of Rama Steel Tubes Ltd surged 2.50 per cent to Rs 40.12 per share with an intraday high of Rs 42.24 and an intraday low of Rs 38. The shares of the company saw a spurt in volume by more than 61.89 times on BSE.
The company have a market cap of Rs 1,875 crore with a 1-year stock price CAGR of 151 per cent. The stock gave multibagger returns of 595 per cent in just 2 years and over 2,900 per cent returns in 3 years. Investors should keep an eye on this Small-Cap stock.
In the previous financial year 2022-2023, the company had declared bonus shares in the ratio 4:1 and stock split from a face value of Rs 5 to a face value of Rs 1. The stock split record date was August 28, 2022 and the bonus shares record date was January 06, 2023.
Disclaimer: The article is for informational purposes only and not investment advice.