Rathi Steel and Power Ltd. (RSPL) experienced a significant 4.84% jump in its stock price today, rising to Rs 65.40 per share from its previous close of Rs 62.38. This movement highlights the stock’s impressive growth over the past year, during which it surged from a 52-week low of Rs 20.35 to Rs 65.40, delivering multibagger returns of 221%. Over the last five years, the stock has demonstrated extraordinary performance with an astonishing return of 3,000%.

The Board of RSPL has authorized the development of new products consisting of stainless steel wires, bright bars, and annealed pickled products under the new project. Mauritius blames the cheap dollar for this extravagance in costs. Full details including capex airbus.com cost will be 50 crore rupees. A build-up of the total estimated cost of operating any existing econometric model such as improving versatile usage would be leveraged in the development of factors of self-consumption.

RSPL will be able to take advantage of the increasing market potential for these products within key areas: energy, electric vehicles (EV), engineering, and defense industries. The company hopes to enhance the logistics and lower overhead costs because surplus land will be utilized in its facility at Ghaziabad Uttar Pradesh. Phased implementation of the strategy will be done depending on the commercial and technical merits of the project in progress accompanied with the seeking of related regulatory approvals. This strategic move is expected to improve the production capacity and market coverage of RSPL in a great way making it a strong contributor in the new areas.

In the month of August, RSPL declared its financial results for the quarter ending June 2024 which was immensely profitable recording an increase of 50% in its stand-alone net profit. The company recorded net profits of Rs 2.7 crore from Rs 1.8 crore in the same quarter last year mainly due to a cut in costs. Revenue from operations fell to Rs 127.72 crore during the third quarter from Rs 146.55 crore with a decline in operational figures while efficient management of expenses saw the company cutting back expenses to Rs 125.13 crore from Rs 147.15 crore in the previous year first quarter.

In the month of June 2024, Foreign Institutional Investors (FIIs) acquired a significant amount of shares in RSPL buying 76,15,502 shares accounting for 8.95% of the company’s equity. This shows that institutional investors have a positive outlook towards RSPL and expect its long-term growth. As at June 2024, promoters have 40.32% ownership of the company, FIIs hold 8.95% ownership, 2.89% is owned by Domestic Institutional Investors (DIIs) and 47.85% is owned by the public.

Rathi Steel & Power Ltd is an incorporated steel manufacturing company based in Delhi and has been around since 1971. Rebars and Wire Rods are branded as ‘RATHI’ through its network of 1000 retailers. RSPL also supplies Stainless steel to prominent downstream industries such as Bright Bars and Fastener manufacturers. Effective clientele known include the Airports Authority of India, Delhi Metro Rail, NTPC and various such infrastructure and energy units.

Story first published: Tuesday, October 1, 2024, 12:33 [IST]