Rathi Steel and Power Ltd has been making waves in the stock market, with its shares skyrocketing from a 52-week low of Rs 5.61 to Rs 63.10 per share, delivering multibagger returns of 1,025 percent in just one year. The company’s stock was locked in a 10 percent upper circuit today, reflecting the investor frenzy surrounding it.
One of the key factors driving this surge in the company’s stock price is the recent declaration of its steel melting unit at Ghaziabad as a Pioneer Unit under the “The Industrial and Service Sector Investment Policy 2004” of the Government of Uttar Pradesh. This development has not only garnered attention but has also resulted in a substantial amount of Rs 4,71,47,847.12 being refunded to the company by the government as electricity duty exemption.
Furthermore, Rathi Steel and Power Ltd has reported impressive financial results in Q4FY24, with a 17 percent increase in net sales to Rs 118.35 crore and a staggering 2,457 percent rise in net profit to Rs 20.20 crore compared to the previous quarter. The company’s strategic restructuring, debt repayment, and focus on high-margin stainless steel products have paved the way for its remarkable turnaround in FY24.
Established in 1971, Rathi Steel and Power Ltd has cemented its position as a leading steel manufacturer in Delhi, offering a wide range of products under the renowned “RATHI” brand. With a robust market cap exceeding Rs 537 crore and a diverse clientele including major players in the industry, the company appears to be on a path of sustained growth and success.
For investors looking to capitalize on the potential of micro-cap stocks, Rathi Steel and Power Ltd’s remarkable journey from obscurity to prominence serves as a compelling opportunity to watch closely.
