Steel Stock Under Rs 20 is Ready to Soar – Don’t Miss Out on the Growth Potential!
Affordable Steel Stock Set for Expansion and Sustainable Growth
Looking for an affordable stock under Rs 20 with the potential to skyrocket? Keep an eye on Rhetan TMT, a Gujarat-based steel manufacturer that's quietly becoming a force to view with in the industry. With recent strategic moves and impressive financial growth, this Small-Cap stock could be your next big win.
From BSE SME to Main Board – A Major Leap
Rhetan TMT recently made a significant jump by migrating from the BSE SME platform to the BSE Limited Main Board on May 5, 2024. This move marks a important moment for the company, increasing its visibility and appeal to a broader range of investors. Now, with shares trading under Rs 20.
Strong Financials Back Growth Potential
The numbers speak for themselves. In the first quarter of FY25, Rhetan TMT reported revenue of Rs 19.34 crore and a net profit of Rs 80.67 lakh. This follows a solid FY24 performance with revenue of Rs 64.77 crore and net profit of Rs 3.87 crore. With a promoter group holding of 62.11% as of June 2024, the company's management shows strong confidence in its growth trajectory.
A Strategic Expansion with Green Energy Focus
One of the most exciting developments for Rhetan TMT is its push towards sustainability. At the Vibrant Gujarat Global Summit 2024, the company signed a Memorandum of Understanding (MoU) to set up a 2 MW solar power plant at its Kadi, Gujarat factory. The plant will cater to the company's captive energy needs, driving down costs and reinforcing its commitment to green energy.
Capacity Boost and IPO Success
Back in August 2022, Rhetan TMT successfully raised Rs 56 crore through an SME IPO. The funds were used to expand its production capacity at the Kadi plant from 30,000 MT to 45,000 MT per annum, positioning the company to meet the rising demand for its high-quality TMT bars and round bars. These products are essential in the construction of homes, high-rises, bridges, and other major infrastructure projects due to their exceptional strength, ductility, and earthquake resistance.
Stock Performance:
In just two years, the stock has delivered an impressive return of 1,462 per cent to its investors. Over the last four years, the company has achieved a sales CAGR of 34.13 per cent and has become profitable in the last three years, maintaining consistent profitability with a remarkable CAGR of 209 per cent.
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Why Rhetan TMT is a Stock to Watch
What makes Rhetan TMT a stock to watch isn’t just its affordable price point. It’s the company’s ability to balance growth with innovation, especially in a capital-intensive sector like steel manufacturing. Its fully mechanized plant, located on the Kadi-Kalol Road in Mehsana, Gujarat, operates with a daily capacity of 100-120 MT, ensuring steady production to meet market demands.
A Vision for the Future
Managing Director Shalin Shah is confident about the company’s future: “With strategic initiatives and a strong financial foundation, we are well-positioned to expand our manufacturing capacity and deliver sustainable value to our shareholders, customers, employees, and communities.”
Disclaimer: The article is for informational purposes only and not investment advice.