Thread by @OverView11

RAMA STEEL: A POTENTIAL MULTIBAGGER. @niftygranmaster #SumitBansal announced his entry in Rama Steel Tubes on 13.12.2022 at Rs.175. The company is another infrastructure play, basking in the glory of large scale development happening in the country ....2/

https://twitter.com/NiftyGranmaster/status/1602607486330077185

#RamaSteel manufactures ERW Steel pipes (Black and Galvanized). It has a very large variety of pipe sizes to meet almost every demand in Water supply, Oil & Gas, Construction, Industries and Electrification ...3/

Due to the unending construction of highways across the country there is huge demand for galvanized lighting poles of specific designs. The company is a preferred supplier across several states for highway electrification, as is evident from the orders it has been bagging ...4/

Quarterly Revenue has being growing consistently to reach 350Cr in Sept Quarter from 200Cr, 1 year ago. Annual revenue this year may reach Rs.1200 Crore from 760crore seen last year. 50 to 60% growth expected #RamaSteelTubes …5/

Rama Steel Tubes has an aggregate capacity of 2,64,000 MTPA currently. This is set to more than double progressively, within 1 year, with capacity addition of 3,00,000 MTPA which is under construction …6/

Break Up of Capacity Expansion: 30,000MTPA capacity expansion in Maharashtra, 20,000MTPA Plant in Nigeria, New 50,000MTPA plant is upcoming in Chattisgarh and 200,000 MTPA Galvanizing plant in Anantapur ...7/

With the 30,000MTPA capacity in Maharsahtra dedicated for exports, company expects higher margin and higher profits next year. Exports are currently 10 to 15 %. This could reach 20 to 25% range ...8/

The overall capacity would be good enough for company to hit 3000Crore annual revenue over the next few years, once the new plants stabilize. That is against Rs.760Cr in FY22. ...9/

Company is also expanding inorganically. Recently acquired majority stake in a pan India Steel Pipe distributor. Acquired 50% stake in HAGAR – bath room fittings /sanitaryware company #RAMASTEEL ...10/

Company has reasonable longterm debt and has sizeable reserves, to take care of capex. Looks like there is enough free reserve too, to reward shareholders with Bonus Shares. The future looks quite bright for Rama Steel. #StockToWatch #multibaggerstocks