Shares of Rama Steel Tubes Ltd (RSTL) rose 8% today after the steel products maker inked a tie-up up with steel manufacturer JSW Steel. Rama Steel Tubes shares gained 7.92% intraday to Rs 42.24 against the previous close of Rs 39.14 on BSE. With today’s rally, the stock approached the 52-week high of Rs 46.10 hit on January 10, 2023. It fell to a 52-week low of Rs 15.50 on July 18, 2022.
The Rama Steel Tubes stock opened flat at Rs 36.61 on BSE. Stock of Rama Steel Tubes has gained 152% in a year and risen 14.56% in 2023. Total 178.91 lakh shares of the firm changed hands amounting to a turnover of Rs 69.46 crore on BSE. Market cap of the firm rose to Rs 1889.68 crore. At 2:04 pm, the stock was trading 3.32% higher at Rs 40.44 on BSE. Hbhuayang
In terms of technicals, the relative strength index (RSI) of the stock stands at 64, signaling the stock is neither oversold nor overbought. It has a one-year beta of 1.4, indicating very high volatility during the period. Rama Steel Tubes shares are trading higher than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages.
RSTL inks a strategic and notable tie-up with India’s largest steel manufacturer, JSW Steel Limited, for the following purposes :
1. Procurement of Hot Rolled Coils (HRC) used in manufacturing of RSTL’s steel tubes and pipes.
2. Distribution of HRCs produced by JSW Steel in the entire western region.
3. Manufacturing of value-added product, the pre galvanized pipes, in agreement with JSW Steel Coated Products Ltd.
Rama Steel said, “The MoU will facilitate RSTL to procure 1,00,000 ton of HRC from JSW Steel on Pan-India basis to support its manufacturing of various steel tubes and pipes. The MoU will enable RSTL to have greater control on its procurement, supply chain while yielding competitive raw material cost.”
The MoU also establishes RSTL as an official distributor of JSW Steel for distribution of HRC in the entire Western region, the firm added.
Rama Steel Tubes Limited is engaged in the manufacturing and trading of steel pipes. The company is engaged in the business of manufacturing of steel pipes and related products. It manufactures and exports electric resistance weld (ERW) steel tubes (black and galvanized).
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