Multibagger Penny Stock Under Rs 50: Iron & Steel Company Reports a 746 Per Cent Jump in PAT to Rs 6.94 Crore
From Rs 20.35 (52-week low) to Rs 46.98 per share, the stock gave multibagger returns of 130 per cent in just 1 year and a whopping 2,140 per cent in 5 years.
Today, shares of Rathi Steel and Power Ltd plunged 2 per cent to Rs 46.98 per share from its previous closing of Rs 47.93. The stock’s 52-week high is Rs 97.81 while its 52-week low is Rs 20.35.
Incorporated in 1971, Rathi Steel and Power Limited manufactures and supplies steel and steel-related products. The company specializes in stainless steel products like Wire Rods, flats etc., which are primarily used in infrastructure, engineering, and household applications. Rathi operates a plant in Ghaziabad, UP, with an installed capacity of 2,00,000 tons per annum or rolling capacity. The Company also operates a steel melting shop with an installed capacity of over 90,000 tons per annum to manufacture stainless steel billets.
Rathi Steel and Power Limited is taking a strategic step towards enhancing its value chain and market reach. The company is investing up to Rs 50 crore to establish a forward integration facility at its Ghaziabad location. This facility will convert wire rods into value-added products like bright bars and wires, expanding its product portfolio and catering to various industries, including automotive, electric vehicles, defence, solar, engineering, and household goods. By optimizing capacity utilization and diversifying its revenue streams, Rathi Steel and Power aims to strengthen its market position and capitalize on high-growth sectors.
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According to the Quarterly Results, the net sales decreased by 4 per cent to Rs 121.43 crore and net profit increased by 746 per cent to Rs 6.94 crore in Q2FY25 compared to Q2FY24. In H1FY25, net sales decreased by 8.80 per cent to Rs 249.16 crore and net profit increased by 269 per cent to Rs 9.63 crore compared to H1FY24.
The promoters of the company own a 40.32 per cent stake, FIIs own 8.95 per cent, DIIs own 2.89 per cent and the public owns a 47.85 per cent stake as of September 2024. From Rs 20.35 (52-week low) to Rs 46.98 per share, the stock gave multibagger returns of 130 per cent in just 1 year and a whopping 2,140 per cent in 5 years. Investors should keep an eye on this micro-cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.