Multibagger Penny Stock Under Rs 50 Jumps After Receiving BIS License to Use the BIS Standard Mark on SS 550 Reinforcement Bars
From Rs 36.91 (52-week low) to Rs 38.90 per share, the stock is up by 5.4 per cent and gave multibagger returns of 1,710 per cent in 5 years.
Today, shares of Rathi Steel and Power Ltd jumped 2.9 per cent to Rs 38.90 per share from its previous closing of Rs 37.81 per share. The stock’s 52-week high is Rs 97.81 while its 52-week low is Rs 36.91.
Bureau of Indian Standards (National Standards Body, Govt. of India) has granted a license to Rathi Steel and Power Limited to use the BIS standard mark on SS 550 Reinforcement Bars under the title of “High Strength Deformed Stainless Steel Bars and Wires for Concrete Reinforcement” for 32 mm diameter bars. This approval signifies that the Company's manufacturing and testing facilities for these bars meet the required quality standards set by BIS.
This license, valid until 01.02.2026, allows the Company to manufacture and market SS 550 Reinforcement Bars of 32 mm diameter under the specified title. The Company believes this approval will positively impact its operations by enabling the optimal utilisation of existing capacity by producing this additional product line. This will allow the Company to cater to the increasing market demand for these high-strength reinforcement bars. The Company plans to pursue similar approvals for other diameters/sizes to offer a complete product range.
DSIJ's ‘Penny Pick’ service provides research-backed penny stock recommendations below Rs. 100. If this interests you, do download the service details here.
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 the Quarterly Results, the net sales decreased by 4 per cent to Rs 121.43 crore and net profit increased by 746 per cent to Rs 6.94 crore in Q2FY25 compared to Q2FY24. In H1FY25, net sales decreased by 8.80 per cent to Rs 249.16 crore and net profit increased by 269 per cent to Rs 9.63 crore compared to H1FY24.
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. From Rs 36.91 (52-week low) to Rs 38.90 per share, the stock is up by 5.4 per cent and gave multibagger returns of 1,710 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.