Rathi Steel and Power Ltd, a Delhi-based steel manufacturer, has seen a phenomenal surge in its stock price, with returns of over 1,000 per cent in just one year. The stock, which hit a 52-week low of Rs 4.86 per share, soared to Rs 54.18 per share, hitting a new high. Investors have been thrilled by this massive uptrend, with the company’s market cap now standing at over Rs 450 crore.
Founded in 1971, Rathi Steel and Power Ltd is known for its high-quality Rebars and Wire Rods under the “RATHI” brand. The company caters to a wide range of clients, including prestigious names like the Airports Authority of India, Delhi Metro Rail, and NTPC. Despite facing challenges like cheap imports and raw material constraints, the company managed to achieve a remarkable turnaround in the fiscal year 2024.
With a focus on debt reduction and strategic expansion, Rathi Steel Company has leveraged funds from preferential allotments and Kotak Mahindra Bank to repay debts, expand operations, and modernize projects. Additionally, the company has shifted its focus towards high-margin stainless steel products, improving production capacity and optimizing its product mix.
The stock’s meteoric rise has caught the attention of investors and analysts alike. The promoters hold a significant stake in the company, indicating confidence in its growth potential. With a track record of impressive financial performance and strategic growth initiatives, Rathi Steel and Power Ltd continue to be a stock to watch in the micro-cap segment.
