Penny Stock: The stock in Rama Steel Tubes Ltd (NSE: RAMASTEEL), a prominent producer of steel products that are branded in India is experiencing an increasing trend. On Thursday it hit an upper circuit.
The company’s shares climbed 20% on Thursday. The company’s share hit an intraday peak of 13.90 rupees the day before.
Let us inform you that on Wednesday, it also saw an increase of over 10 %. That is, in just two trading days, this stock saw a rise of up to 32%.
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Reason For The Rise In Shares
Let us inform you that this Wednesday Rama Steel Tubes Ltd announced an alliance together with Onyx Renewable Limited to support green and renewable energy projects.
The partnership will make use of Rama Steel Tubes Ltd’ expertise to supply the required steel structures, such as trackers that are single-axis as well as future dual-axis trackers for solar-powered projects developed through Onyx Renewable Limited.
The previous day the company had announced the establishment of a wholly-owned subsidiary owned by Rama Defense Private Limited. This new unit will focus on the defense sector.
The company will be active in activities such as trading, import, export, manufacturing, supply of defense equipment, weapons, ammunition, explosives, and related military and security hardware.
A long-standing tradition of manufacturing steel pipes. Since its inception in 1974, Rama Steel Tubes Ltd has been a major producer of steel pipes, tubes, and GI pipes throughout India.
The company has grown its global operations with a presence in more than 16 countries. Exports account for 10-20% of its total turnover, highlighting its international recognition.
According to its website, Rama Steel Tubes Ltd operates a subsidiary in the UAE and an affiliate in Nigeria and is thereby enhancing its market presence in the world.
Quick Fact
| Company name | Rama Steel Tubes |
|---|---|
| Industry | Steel products |
| Founded | 1974 |
| Headquarters | India |
| Main Products | Steel pipes, tubes, GI pipes |
| Recent Stock Movement | 32% rise in 2 days |
| Reason for Rise | Partnership with Onyx Renewable for green projects |
| New Subsidiary | Rama Defense Private Limited |
| New Focus Area | Defense sector activities |
| Global Presence | 16+ countries |
| Export Contribution | 10-20% of total turnover |
| Subsidiaries | UAE and Nigeria |
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