Debt-free multibagger iron & steel stock at Rs 69.56 bags new order worth Rs 7,80,00,000 from Bansal Wire Industries Ltd
From Rs 7.11 (52-week low) to Rs 69.56 per share, the stock gave multibagger returns of 875 per cent in just 1 year.
Today, shares of Rathi Steel and Power Ltd were locked in a 5 per cent upper circuit to Rs 69.56 per share from its previous closing of Rs 66.25. The stock also made a fresh new 52-week high of Rs 69.56 while its 52-week low is Rs 6.17.
Rathi Steel and Power Limited secured an order worth approximately Rs 7,80,00,000 (including GST) to supply stainless steel products to Bansal Wire Industries Limited, a recognized leader in applying Rathi Steel's products in downstream applications. This transaction falls under the company's normal course of business, signifying it wasn't made with any affiliated parties and was conducted at a fair market price.
Additionally, the company’s steel melting unit at Ghaziabad has been declared a Pioneer Unit under “The Industrial and Service Sector Investment Policy 2004” of the Government of Uttar Pradesh and according to which we have received an amount of Rs 4,71,47,847.12 from the Government of Uttar Pradesh as refund against our claim of electricity duty exemption.
According to Quarterly Results, the net sales increased by 17 per cent to Rs 118.35 crore and net profit increased by 2,457 per cent to Rs 20.20 crore in Q4FY24 compared to Q3FY24. In its annual results, the company reported net sales of Rs 492.83 crore and a net profit of Rs 23.61 crore in FY24 while in FY23, the company reported net sales of Rs 726.55 crore and a net profit of Rs 87.47 crore. Rathi Steel overcame significant hurdles including economic downturn, raw material shortages, and intense competition to achieve a remarkable turnaround in FY24. Through strategic restructuring, debt repayment, and a shift towards high-margin stainless steel products, the company eliminated debt and positioned itself for future growth.
DSIJ's ‘Penny Pick’ service provides research-backed penny stock recommendations below Rs. 100. If this interests you, do download the service details here.
Established in 1971, Rathi Steel and Power Ltd, a Delhi-based steel manufacturer, offers Rebars and Wire Rods under the "RATHI" brand across 1,000 retail outlets and also supplies stainless steel products to major producers of downstream goods like Bright Bars and fasteners. Their clientele boasts esteemed names like the Airports Authority of India, Delhi Metro Rail, and NTPC. The company has a market cap of over Rs 500 crore.
The promoters of the company own a 40.32 per cent stake, DIIs own 2.53 per cent and the public owns a 57.15 per cent stake as of March 2024. From Rs 7.11 (52-week low) to Rs 69.56 per share, the stock gave multibagger returns of 875 per cent in just 1 year. Investors should keep an eye on this micro-cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.
Also Read: Rs 1,400 Crore Order Book: Multibagger Defence Drone Company Introduces AI-powered Robots; Unveils Four Products for the Global Defence Market