This Multibagger Small Cap Stock Is Locked In 5% Upper Circuit After Bulk Deal

Shares of Rama Steel Tubes in trade on June 16, 2022 hit the upper circuit of Rs. 390.8. The gains in the stock have been seen after a bulk deal wherein Nomura Singapore bought in 1 lakh shares in the scrip for a price of Rs. 371 per share.

In a bulk deal, the total share quantity sold or bought is more than 0.5% of the share capital of the entity. Typically in a bulk deal, when a large institution or HNI wishes to buy large block of shares they prefer to do so using sliced trades through the day. This is done to take the maximum advantage of market volatility and reduce the cost of acquisition of the shares.

Rama Steel Tubes is a small cap company with a market cap of Rs. 655 crore. The company incorporated in the year 1974 in Delhi has a vast experience of over five decades in the industry of Steel Pipes and Tubes.

The scrip of Rama Steel is a multibagger with a return of 300% in the last one year. Also, the scrip commands a good RoE of over 20%, nonetheless its Debt to equity is over 1.

Last at the time of writing this copy at 11:33 am, the stock is trading at Rs. 390.1, up 4.81% over the previous session.