Rajasthan Tube Manufacturing Company Ltd Detail
As per the Company website it is manufacturer of Steel Pipes & Tubes, Black Steel Tubes, Galvanised Steel Tubes, Steel Square Tubes, H.R Sheets. It follows the guidelines given in the scheme of testing and inspection of Bureau Of Indian Standard (BIS) as mentioned in Steel Tubes / Pipes control order, which is compulsory for steel Tubes and Pipes.
The product line of Company can be divided into below
- ERW Steel Black pipes
- ERW Steel Galvanized pipes
- Hot Rolled Steel sheets
The manufacturing unit is situated in Jaipur Rajasthan. The registered office is also situated at the same place.
I have shared long term price performance chart of the Company below.As per Dow theory of technical analysis price performance over a period of time reflects Company state.
Rajasthan Tube Manufacturing Company Ltd Stock Performance
It is a range bound Company. If you see closely it trades between 10 and 20 mark most of the time. It started journey on stock exchanges in year 2003 with listing price of 4 INR. After one year it crossed the 10 mark which became new support for the stock.
It has touched the 10 INR mark couple of times for brief period but have recovered from the price point. Similarly 20 acted as stiff resistance on top. It has breached the price point couple of times trading above and close to 40. The move did not sustain for long. So it seems 10 and 20 are very strong support and resistance for the stock.
Rajasthan Tube Manufacturing Company Ltd My Opinion
Rajasthan Tube manufacturing Company limited is Steel sector Company. It is one of the Steel sector Company out of many in portfolio of ace investor Subramanian P.
Steel sector is cyclic in nature. Stock performance depends on Steel prices and Government policies regarding Steel import. The company creates products from Steel which acts as a raw material.
The cyclic nature of business is clearly visible from the stock price performance chart. I personally do not like cyclic business for long term investment. They are better suited for cyclic trading. If the sector is in doldrums then you can buy the stock. You need to sell them if sector returns in good way.
You can make decent money using this trading or investing strategy. This is investing as time frame will be one year or so depending upon sector turn around time. I will cover this type of trading investment strategy in great details in separate post.
In case you are interested then you can track the company by adding it to your stock watch list. That way you can keep close eye on the Company.