Steel stock hits 20% upper circuit after promoter increases stake in the Co

The shares of a microcap steel company that specializes in the production, export, and distribution of steel pipes and tubes are locked in a 20 percent upper circuit after the promoter of the company increases stake consistently. 

Price Action 

The shares of Vibhor Steel Tubes Ltd, with a total market capitalization of Rs 354.69 Crore on Thursday, opened at Rs 180 per share, and in the afternoon session, the shares hit a 20 percent upper circuit at Rs 187 per share. 

What Happened 

Through a press release dated March 19, the company announced that Mrs. Vijay Laxmi Kaushik, the Promotor of the company acquired 6,200 (0.03 percent) equity shares of the company through the open market transaction on March 18, 2025.  As a result, the percentage stake of ownership of Mrs. Vijay Laxmi Kaushik increased to 22.77 percent from 22.74 percent. 

Previously on March 10th and 13th, Mrs. Vijay Laxmi Kaushik acquired 6,600 equity shares and 9000 equity shares, respectively. Promoters often increase their stake in a company to signal confidence in its long-term growth, which can boost investor sentiment and drive up the stock price. Conversely, when promoters sell a significant portion of their shares, it may lead to a decline in the stock price.

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Significant Partnership

It has a contract manufacturing agreement with Jindal Pipes Ltd to produce and supply finished goods under the brand name “Jindal Star”, which currently derives over 80 percent of its total turnover from this single segment.  

About Vibhor Steel Ltd 

The company specializes in the manufacturing, export, and distribution of steel pipes and tubes to various heavy engineering industries in India. It operates two manufacturing facilities: one with an installed capacity of 125,000 MTPA in Maharashtra and another with an installed capacity of 96,000 MTPA in Telangana. 

Product Portfolio 

It produces a diverse portfolio that includes ERW black pipes, galvanized pipes, hollow sections, and primer-painted pipes, catering to the construction, domestic, agricultural, and industrial sectors. 

Financials

The company reported a slight decrease of 1.5 percent in revenue from operations from Rs 251 Crore in Q3FY24 to Rs 247.25 Crore in Q3FY25. Its Net Profits also declined by 20.4 percent YoY from Rs 4.3 Crore to Rs 3.4 Crore over the same period. 

Written By Adhvaitha Nayani

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