Vibhor Steel Tubes stock jumps over 19% to hit 3-week high, up 32% in 3 sessions; here’s why
Shares of Vibhor Steel Tubes jumped over 19% to hit a 3-week high. Over the last three trading sessions (including today), the stock spiked 32%.
Continuing their winning streak for the third consecutive trading session, shares of Vibhor Steel Tubes surged over 19% to ₹332 apiece in today's intraday trade on strong spike in volumes, hitting a three-week high. This brings the total gain over the past three days to 32%.
Around 02:00 p.m., a total of 11 lakh shares changed hands on both the NSE and BSE. The company made its stock market debut on February 20, with a listing price of ₹446 per share, marking a premium of 195.3% over the issue price of ₹151 per share. This made it the first Mainboard IPO of 2024 to list at a premium exceeding 190%.
The company's robust fundamentals captured investor attention during its bidding period, resulting in a substantial subscription rate of 298.86 times. Following a strong listing, the stock witnessed some selling pressure. Nonetheless, it remains up by 117% from its IPO price.
Vibhor Steel Tubes is a manufacturer and exporter specialising in mild steel, carbon steel, ERW black and galvanized pipes, hollow steel pipes, and cold-rolled steel (CR) strips and coils. Since 2003, it has maintained a fruitful collaboration with Jindal Pipes Limited, producing and distributing finished goods under the renowned brand "Jindal Star."
Recently, the company renewed its partnership with Jindal Pipes for an additional six years, securing a minimum annual order of 1 lakh MT with a 2% discount on the gross sale price. This guaranteed quantity will effectively utilize the majority capacity of Units I and II.
Also Read: SRM Contractors share price hits 5% upper circuit after muted listing; What should investors do?
In partnership with Jindal Pipes Limited, Vibhor Steel Tubes has established a wide range of networking channels throughout the industry and society to strengthen the scope of identifying the core customer base, designing the right marketing strategies for procurement, and liaising on projects to deliver customized solutions for clients.
The company's financial performance has shown consistent growth in both revenue and profit over the last three fiscal years. Revenue from operations surged from ₹511.51 crore in FY21 to ₹818.48 crore in FY22 and then to ₹1,114.38 crore in FY23.
Likewise, profit after tax (PAT) followed a similar upward trajectory, climbing from ₹0.69 crore in FY21 to ₹11.33 crore in FY22, and further to ₹21.07 crore in FY23. In H1FY24, the company reported revenue of ₹531.24 crore and a PAT of ₹8.52 crore.
At 02:00 p.m., the stock was trading with a gain of 16% at ₹323.95 apiece.
Disclaimer: We advise investors to check with certified experts before taking any investment decisions.
Catch all the Business News , Market News , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
- Top Gainers
- Top Losers
- 52 Week High