Rathi Steel & Power Limited: A Stock to Watch Out for in 2023
Rathi Steel & Power Limited (RSPL) is a leading manufacturer of steel products in India. The company has two manufacturing units, one in Ghaziabad, Uttar Pradesh, and another in Sambalpur, Odisha. The company produces TMT bars, wire rods, and sponge iron for various sectors such as infrastructure, construction, engineering, and automotive.
The company is part of the P.C. Rathi Group, which has a legacy of over seven decades in the steel industry. The group was founded by the late Seth Gordhan Das Rathi, who set up a small re-rolling mill in Delhi in the early 1940s. Since then, the group has grown continuously and diversified into various segments of steel production.
Why Rathi Steel & Power Limited is a Stock to Watch Out for in 2023?
Rathi Steel & Power Limited has been witnessing a strong performance in the stock market in recent times. The stock has been hitting back-to-back upper circuits and trading a new 52-week high since July 10, 2023. In the last 1 week only, Rathi Steel & Power shares gained 28% and offered 143% return in the last 3 years.
The stock closed at Rs 5.10 per share on July 15, 2023, with a gain of 4.94%. The market capitalization of the company stood at Rs 104.97 crore as of that date.
Some of the factors that are driving the stock price of Rathi Steel & Power Limited are:
- The company has been reporting improved financial results in the last few quarters. For the quarter ended March 31, 2023, the company posted a net profit of Rs 2.91 crore, as compared to a net loss of Rs 6.38 crore in the same quarter last year. The revenue from operations increased by 23% to Rs 212.64 crore in Q4 FY23 from Rs 172.66 crore in Q4 FY22.
- The company has been focusing on reducing its debt and improving its liquidity position. As per the latest annual report, the company has reduced its total borrowings by Rs 36.68 crore in FY23 from Rs 118.48 crore in FY22. The company has also improved its current ratio from 0.67 in FY22 to 0.83 in FY23, indicating a better ability to meet its short-term obligations.
- The company has been benefiting from favorable market conditions and the strong demand for steel products in the domestic and international markets. The company has been able to increase its sales volume and realization due to the higher demand and prices of steel products. The company has also been able to expand its customer base and product portfolio by catering to various sectors and regions.
- The company has been investing in modernizing and upgrading its manufacturing facilities and technology to enhance its operational efficiency and quality standards. The company has also been adopting various measures to reduce its cost of production and optimize its resource utilization. The company has also been implementing various initiatives to improve its environmental, social, and governance (ESG) performance.
Conclusion
Rathi Steel & Power Limited is a stock that investors should keep an eye on in 2023. The company has been showing consistent growth and profitability in the last few quarters. The company has also been reducing its debt and improving its liquidity position. The company has been benefiting from favorable market conditions and the strong demand for steel products. The company has also been investing in modernizing and upgrading its manufacturing facilities and technology.
The stock price of Rathi Steel & Power Limited reflects its strong fundamentals and growth prospects. The stock has been hitting new highs and offering attractive returns to investors. The stock is likely to continue its upward momentum in the coming months.
Disclaimer:
This blog post is for informational purposes only and does not constitute any investment advice or recommendation. Investors should do their own research and analysis before making any investment decision.
Keywords: Rathi Steel & Power, Stock, Upper circuits, 52-week high, Growth