Rs 43 to Rs 665: This bead wire company soared over 1440 per cent in two years!

An investment of Rs 1 lakh in the shares of this company would have turned to Rs 15.4 lakh today.

Rajratan Global Wire Ltd, an Indian company that manufactures bead wire and high carbon steel carbon wires, has delivered exceptional returns of 1440 per cent to its investors in the last 2 years.  

During this period, the company’s share price has steadily appreciated from Rs 43.18 on 29 June 2020 to Rs 665.15 on 29 June 2022. An investment of Rs 1 lakh in the shares of this company would have turned to Rs 15.40 lakh today.  

The company’s share price appreciation has been accompanied by an exceptionally strong financial performance. In the last 8 quarters, i.e., since the March 2020 quarter, the company’s topline has almost doubled. Similarly, the operating profit has grown by 200 per cent, while the net profit has grown by over 500 per cent.  

Rajratan is one of the largest bead wire manufacturers in Asia. It intends to become the leading and most preferred bead wire manufacturer and supplier to tyre companies in India and globally. The company has a strong international foothold with exports to countries like Italy, the USA, The Czech Republic, South Korea, Malaysia, Indonesia, Philippines, Vietnam, Sri Lanka, Finland and Bangladesh, among others.  

The company’s marquee clientele includes Apollo Tyres, MRF, CEAT and Balkrishna Industries. In FY22, the company delivered an ROE and ROCE of 36.91 per cent and 38.13 per cent, respectively.   

The growth in the company’s business is directly linked to the growth in the tyre industry. The latter experienced a 12-15 per cent increase in realizations during FY22 (via pass-through of raw material costs). The management of Rajratan expects that going forward, the demand for bead wire is likely to continue, led by the replacement market, exports and timely capacity expansion.  

At 12.03 pm, the shares of Rajratan Global Wire Ltd were trading at Rs 681.50 apiece.