Multibagger penny stock at Rs 63: This iron & steel company bags new order worth Rs 10.75 crore from Bansal Wire Group

From Rs 3.30 to Rs 63 per share, the stock gave multibagger returns of over 1,800 per cent in just 1 year.

Rathi Steel and Power Limited informed that the company has bagged an order worth approximately Rs 10.75 crore (including GST and for base grade products) to supply stainless steel products to Bansal Wire Group, a leader in applications using Rathi Steel's products. This order is expected to be fulfilled within 30 to 45 days based on the customer's requirements. Notably, the customer expressed satisfaction with the improved product quality after Rathi Steel's mill modernization project. It's important to clarify that this order was received through regular business operations and does not involve any related parties; the transaction is conducted on an arm's length basis.

Additionally, the company has begun implementing a cost optimisation project aimed at improving efficiency and reducing the company's environmental impact. The project involves synchronizing the steel casting and rolling process, which will require most of the major equipment to be either on-site or delivered very soon. Once implemented and stabilized, this project is expected to significantly reduce fuel consumption, improve production yield, and minimize the company's carbon footprint, making Rathi Steels and Power Limited more sustainable. The company is targeting to initiate trial runs of the project in May 2024, with a subsequent stabilization period that may cause temporary disruptions to production and sales volume.

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Today, shares of Rathi Steel and Power Ltd gained 1.04 per cent to Rs 63 per share from its previous closing of Rs 62.35. The stock’s 52-week high is Rs 67.10 while its 52-week low is Rs 3.15.  

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 Rs 536 crore and positive numbers in its Quarterly Results (Q3FY24) and nine-month results (9MFY24).

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 3.30 to Rs 63 per share, the stock gave multibagger returns of over 1,800 per cent in just 1 year.

Disclaimer: The article is for informational purposes only and not investment advice.