Penny Stocks Under Rs 25: Progressing Toward Sustainable Growth with a New Solar Power Project
The company’s shares have delivered an impressive return of over 85 per cent in the past year.
Rhetan TMT Bars, a leading player in the steel manufacturing industry with over four decades of expertise, continues to advance its sustainability initiatives and operational growth. The company has announced a new lease arrangement for land at Village UN, Taluka Kankrej, District Banaskatha, Gujarat, to establish a 2 MW solar power plant for captive consumption at its factory in Kadi, Gujarat.
This project comes after challenges with a previous land lease in Untarda, District Aravalli, and delayed plans. The company has already secured provisional approval from the Gujarat Energy Development Agency (GEDA) and submitted an application to Gujarat Energy Transmission Corporation (GETCO) for connectivity approval, expected by mid-January 2025. Full-scale implementation of the solar plant is projected to conclude by April-May 2025.
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Aligned with its vision for sustainable growth, Rhetan aims to reduce energy costs and transition to cleaner energy solutions through this solar initiative. The project reinforces the company’s commitment to environmental responsibility while supporting its expanded operations at the Kadi plant, which now boasts a production capacity of 45,000 MT per annum, up from 30,000 MT. Renowned for its flagship Thermo-Mechanically Treated (TMT) bars, the company provides high-strength, earthquake-resistant products essential for construction projects. Additionally, Rhetan manufactures mild steel round bars used in engineering components and forging industries, maintaining global quality standards.
Share Performance
Today, the shares of Rhetan TMT Bars closed the day at around Rs 21.55 per share on the BSE. The current market capitalization stands at Rs 1,717 crore. The company’s shares have delivered a YTD of over 115 per cent in the past year.
Financial Performance
As per the Quarterly Results, in Q2 FY25 Rhetan TMT Bars reported a revenue of Rs 4.95 crore compared to Rs 10.47 crore representing a de-growth of around 53 per cent YoY. The company posted an operating profit of Rs 3.13 crore with a margin of around 63.23 per cent compared to Rs 1.05 crore with a margin of around 10.03 per cent. The company reported a net profit stood at Rs 2.27 crore for the period compared to a profit of Rs 0.68 crore.
Investors must keep this stock on their radar.
Disclaimer: The article is for informational purposes only and not investment advice.