Multibagger penny stock below Rs 60: This iron & steel company reports a 2,457 per cent jump in net profit on a QoQ basis!

From Rs 3.15 (52-week low) to Rs 52.35 per share, the stock gave multibagger returns of over 1,500 per cent in just 1 year.

Established in 1971, Rathi Steel and Power Ltd (RSPL), 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 445 crore.

According to Quarterly Results, the net sales increased by 17 per cent to Rs 118.35 crore and net profit increased by 2,457 per cent to Rs 20.20 crore in Q4FY24 compared to Q3FY24. In its annual results, the company reported net sales of Rs 492.83 crore and a net profit of Rs 23.61 crore in FY24 while in FY23, the company reported net sales of Rs 726.55 crore and a net profit of Rs 87.47 crore.

On Thursday, shares of Rathi Steel and Power Ltd plunged 4.14 per cent to Rs 52.35 per share from its previous closing of Rs 54.61 with an intraday high of Rs 55.45 and an intraday low of Rs 51. The stock’s 52-week high is Rs 67.51 while its 52-week low is Rs 3.15.  

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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 3.15 (52-week low) to Rs 52.35 per share, the stock gave multibagger returns of over 1,500 per cent in just 1 year. Investors should keep an eye on this micro-cap stock.

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