Rama Steel shares rise 8% on tie-up with JSW Steels?

Shares of Rama Steel Tubes increased 7.92% intraday, closing at Rs. 42.24 on the BSE, up from their previous close of Rs. 39.14. The stock rose today, moving closer to the 52-week high of Rs. 46.10 reached on January 10, 2023.

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. — Shares of Rama Steel Tubes are trading above their respective moving averages of 5 days, 20 days, 50 days, 100 days, and 200 days.

INTRODUCTION

After signing a partnership with steel producer JSW Steel, Rama Steel Tubes Ltd. (RSTL) saw an 8% increase in its stock price today. Shares of Rama Steel Tubes increased 7.92% intraday, closing at Rs. 42.24 on the BSE, up from their previous close of Rs. 39.14.

On the BSE, the Rama Steel Tubes shares started unchanged at Rs. 36.61. In one year, Rama Steel Tubes stock increased by 152%, and it will increase by 14.56% in 2023. A total of 178.91 lakh shares of the company were traded, resulting in a BSE turnover of Rs. 69.46 crore. The company’s market value increased to Rs 1889.68 crore.

Technically, the stock’s relative strength index (RSI) is 64, indicating that it is neither oversold nor overbought. Its one-year beta is 1.4, which indicates that there was extremely significant volatility during that time. Shares of Rama Steel Tubes are trading above their respective moving averages of 5 days, 20 days, 50 days, 100 days, and 200 days.

With JSW Steel Limited, India’s largest steel producer, RSTL signs a strategic partnership that is noteworthy for the following reasons:

acquisition of hot-rolled coils (HRC), a component used in the production of steel pipes and tubes by RSTL.
JSW Steel’s HRC production is distributed throughout the entire western area.
Pre-galvanized pipes are being manufactured under a contract with JSW Steel Coated Products Ltd.

The MoU will enable RSTL to purchase 1.00.000 tonnes of HRC from JSW Steel on a pan-India basis to support its production of various steel tubes and pipes, according to Rama Steel. The MoU will provide RSTL more control over its supply chain and procurement while producing competitive raw material costs.

Steel pipes are manufactured and traded by Rama Steel Tubes Limited. Manufacturing steel pipes and associated goods is the company’s line of business. It produces and sells galvanised and black electric resistance weld (ERW) steel tubes.