Promoters bought 13.70 lakh shares: Multibagger penny stock below Rs 50 jumps over 7 per cent; Here’s why!
The stock is up over 20 per cent from its 52-week low and has given multibagger returns of over 1,200 per cent in 5 years.
Today, shares of Rathi Steel and Power Ltd jumped over 7 per cent to Rs 30 per share from its previous closing of Rs 28.02 per share.
Rathi Steel and Power Limited has received a significant regulatory approval from the Bureau of Indian Standards (BIS), the national standards body of the Indian government. The company has been granted license number CM/L/8700195219, dated May 9, 2025, which permits them to use the BIS Standard Mark on their Fe 500 Reinforcement Bars. This license specifically covers "High Strength Deformed Steel Bars and Wires for Concrete Reinforcement" in nominal sizes of 8 mm, 10 mm, 12 mm, 16 mm, 20 mm, and 25 mm diameter, about the company's TMT bars product line.
This approval holds considerable importance for Rathi Steel and Power Limited. It enables the company to manufacture and test a widely used range of Fe 500 Reinforcement Bars, signifying adherence to national quality standards. Furthermore, this license allows for the optimal utilisation of existing production capacity by introducing an additional product line, thereby positioning the company to effectively meet the increasing market demand for these construction materials. The granted license is valid for one year, until May 8, 2026.
Earlier, the company announced the re-commencement of commercial operations at its Steel Melting Shop located in Ghaziabad, Uttar Pradesh, effective April 29, 2025. This development follows their earlier intimation dated April 15, 2025, and is disclosed in compliance with Regulation 30 and Para B of Part A of Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, along with SEBI Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024. The Steel Melting Shop has been established for the manufacturing of steel billets, marking a significant step in the company's operational activities.
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About the Company
Incorporated in 1971, Rathi Steel and Power Limited manufactures and supplies steel and steel-related products. The company specialises 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 Quarterly Results, the net sales increased by 3.2 per cent to Rs 104.43 crore and the net profit decreased by 32 per cent to Rs 0.79 crore in Q3FY25 compared to Q3FY24. In its nine-month results, the net sales decreased by 6 per cent to Rs 353.59 crore and the net profit increased by 199 per cent to Rs 10.16 crore in 9MFY25 compared to 9MFY24
The stock’s 52-week high is Rs 97.81 per share while its 52-week low is Rs 24.50 per share. The promoters of the company bought 13,70,001 shares in March 2025 and increased their stake to 41.30 per cent compared to December 2024. The stock is up over 20 per cent from its 52-week low and has given multibagger returns of over 1,200 per cent in 5 years.
Disclaimer: The article is for informational purposes only and not investment advice.