Debt-free multibagger iron & steel stock saw heavy buying today: Scrip hit 10 per cent upper circuit to an intraday high of Rs 54.18 per share today!
From Rs 4.86 (52-week low) to Rs 54.18 per share, the stock gave multibagger returns of over 1,000 per cent in just 1 year.
Today, shares of Rathi Steel and Power Ltd hit a 10 per cent upper circuit to an intraday high of Rs 54.18 per share from its previous closing of Rs 49.26. The stock’s 52-week high is Rs 67.51 while its 52-week low is Rs 4.86. The shares of the company saw a spurt in volume by more than 5 times on BSE.
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 450 crore.
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.
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Despite recent challenges like cheap Chinese imports, raw material limitations, and a tough economic climate impacting their Odisha plant, Rathi Steel Company achieved a remarkable turnaround in FY24. Through a successful restructuring plan, Rathi became debt-free by March 2024. To fuel this growth and improve operations, they secured funds through preferential allotment and Kotak Mahindra Bank, which were used to repay expensive debt, expand operations, and modernize projects. Strategically, Rathi shifted focus towards high-margin value-added stainless-steel products, using internal funds to boost production capacity at their Ghaziabad plant. Additionally, they implemented cost-cutting initiatives and optimized their product mix to further increase the share of these valuable products.
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 4.86 (52-week low) to Rs 54.18 per share, the stock gave multibagger returns of over 1,000 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.
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