Promoter bought 70,000 shares: Multibagger penny stock under Rs 40 jumps 9.50 per cent on March 24
The stock gave multibagger returns of 1,500 per cent in 5 years.
Today, shares of Rathi Steel and Power Ltd jumped 9.50 per cent to Rs 33.60 per share from its previous closing of Rs 30.69 per share. The stock’s 52-week high is Rs 97.81 per share while its 52-week low is Rs 24.50 per share.
Rathi Steel promoter, PCR Holdings Pvt Ltd (formerly Archit Securities Pvt Ltd), has acquired a total of 70,000 equity shares in Rathi Steel and Power Limited across two transactions: 45,000 shares on March 21, 2025, increasing their holding by 0.21 per cent, and 25,000 shares on March 20, 2025, increasing their holding by 0.12 per cent. These acquisitions, as disclosed under Regulation 29(2) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, collectively demonstrate the promoter group's increased stake in the company.
Additionally, the Bureau of Indian Standards (BIS) has granted a license to Rathi Steel and Power Limited, allowing them to use the BIS standard mark on their 32 mm diameter SS 550 Reinforcement Bars. This license, valid until February 1, 2026, certifies that Rathi Steel's manufacturing and testing facilities meet BIS quality standards for "High Strength Deformed Stainless Steel Bars and Wires for Concrete Reinforcement". This approval enables the company to manufacture and market these bars under the specified title, optimising their production capacity and meeting the growing demand for high-strength reinforcement bars. Rathi Steel plans to expand its product range by obtaining similar approvals for other diameters and sizes.
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About the Company
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.
According to Quarterly Results, the net sales increased by 3.2 per cent to Rs 104.43 crore and the net profit decreased by 32 per cent to Rs 0.79 crore in Q3FY25 compared to Q3FY24. In its nine-month results, the net sales decreased by 6 per cent to Rs 353.59 crore and the net profit increased by 199 per cent to Rs 10.16 crore in 9MFY25 compared to 9MFY24
The promoters of the company own a 40.32 per cent stake, FIIs own 8.94 per cent, DIIs own 2.53 per cent and the public owns a 48.22 per cent stake as of December 2024. The stock gave multibagger returns of 1,500 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.