Multibagger penny stock under Rs 20 rockets over 8 per cent; PAT jumps 234.1 per cent in Q2FY25
The shares of the company saw a spurt in volume by more than 1.22 times.
Today, shares of Rhetan TMT rocketed over 8 to an intraday high of Rs 18.60 per share from its intraday low of Rs 17.20 per share. The stock’s 52-week high is Rs 19.20 and its 52-week low is Rs 7.62. The shares of the company saw a spurt in volume by more than 1.22 times.
The company's financial performance has shown a mixed trend in the recent quarter. Despite a substantial increase of 234.1 per cent in net profit to Rs 2.27 crore in Q2FY25 compared to Q2FY24, the net sales witnessed a sharp decline of 52.7 per cent to Rs 4.95 crore. This indicates that while the company has improved its profitability, it has faced challenges in increasing its revenue. Furthermore, the company's return on capital employed (ROCE) and return on equity (ROE) stand at 6.50 per cent and 4.44 per cent respectively.
Incorporated in 1984, Rhetan TMT Ltd is in the business of manufacturing TMT bars. TMT Bars and Round Bars which are primarily used in the construction industry and its products have been used in the construction of dams, bridges, residential and commercial towers, and major infrastructure projects in Gujarat.
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Earlier, the company made significant strides towards sustainability by investing in a solar power plant for captive consumption. The company entered into a Memorandum of Understanding (MoU) in January 2024, during the Vibrant Gujarat Global Summit, with the Commissioner of Municipalities Administration, Government of Gujarat. The plant, to be located in Kadi, Gujarat, will have a capacity of up to 2 MW and is expected to commence operations in 2025. By generating its own solar power, Rhetan TMT aims to reduce its reliance on conventional electricity sources and contribute to environmental goals. The Government of Gujarat is actively supporting the project by facilitating necessary permissions and approvals, ensuring a smooth and timely process within the existing state policies and regulations.
From Rs 7.62 (52-week low) to Rs 18.60 per share, the stock gave multibagger returns of 144 per cent. Investors should keep an eye on this penny stock.
Disclaimer: The article is for informational purposes only and not investment advice.