What’s new

• A new tubing machine is in commercial production at the Moti-Bhoyan plant, adding 4.5 million tubes per month.
• Total monthly capacity rises from 72.5 million to 77 million tubes, a 6% increase.
• The ₹10 crore investment was paid for from internal accruals, with no debt.

Why it matters

The company was already running near capacity. This 6% bump is the minimum needed to take new orders without turning business away. For a firm with a ₹596 crore market cap, a self-funded ₹10 crore spend is a real allocation of capital, not a rounding error.

What we’re watching

• Whether the added capacity translates into higher sales in the next two quarters.
• If the plant can run above 90% utilisation with the expanded base.
• Any further capex plans to chase laminated-tube demand.

The full read

Shree Rama Multi-Tech has switched on a new tubing machine at its Gujarat plant, adding 4.5 million tubes per month to a base of 72.5 million. The ₹10 crore investment was paid for from internal cash. No debt. The move comes as the Moti-Bhoyan facility runs at 90% utilisation, leaving little headroom for new orders without more capacity. A 6% increase is not a step-change, but at a ₹596 crore market cap, ₹10 crore of self-funded capex is a real bet on laminated-tube demand. The open question is whether the extra tubes find buyers quickly enough to lift earnings in the quarters ahead.

Primary source: BSE · NSE