Multibagger stock hits 52-week high as PAT rises 58% YoY in Q1

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With a market capitalization of Rs. 4,522.17 crores, Rajratan Global Wire Ltd. is a small cap company that serves the automotive industry. The company began by manufacturing tire beads and has now expanded into the iron and steel trade. The company manufactures high carbon steel wire, commonly known as “black wire”, as well as drawn steel wire and rods for a variety of industrial uses. The action closed at 880.00 per share on Friday, up 3.54% from its previous close of 849.95, after hitting a 52-week high of 896.00. This comes after Rajratan Global’s consolidated net sales in June 2022 reached 251.43 crore, up 37.93% YoY in Q1FY23. The stock hit a 52-week low on July 21 at 350.42, which means it is currently trading 151% above the 52-week low after hitting a 52-week high on Friday.

Rajratan Global Wire Results

According to the consolidated financial statements for the first quarter of FY23, the company’s operating revenues increased by 38% to reach 25,143 lakhs YoY that was 18,229 lakhs at T1FY22. The company’s EBITDA increased by 46% for 5,271 lakhs which was 3,602 lakhs in the same quarter of the previous year and the EBITDA margin increased by 120 basis points and stood at 20.96%. The company’s profit before tax (PBT) increased by 59% for 4,571 lakhs YoY that was 2,875 lakhs in Q1FY22 and profit after tax (PAT) increased by 58% to reach 3,454 Lakhs which was 2,192 lakhs in Q1FY22 and the PAT margin increased by 172 basis points and stood at 13.74%.

From Rs. 21.58 in Jun 2021 to Rs. 6.80 in Jun 2022, Rajratan Global EPS declined. With growing exports to other parts of the world, Rajratan currently holds a market share of around 45% in India and 24% in Thailand. The company can produce 40,000 TPA in Thailand and 72,000 TPA (60,000 TPA for rods) in India. The company is increasing its capacity in Thailand to 60,000 TPA while establishing a new facility in Chennai with additional capacity of 60,000 TPA. The company’s average capacity utilization was maintained at 85%.

Commenting on the performance, Mr. Sunil Chordia, CMD, Rajratan Global Wire Ltd said, “We continued where we left off in FY2022 and continued to focus on outperforming previous benchmarks in all of our production, sales, productivity, customer service and performance metrics. 3 key levers, namely our recent debottlenecking of our Pithampur plant, the expansion of our plant in Thailand and our upcoming Greenfield capacity in Chennai, will also help us grow to our target of 20-25% CAGR (by volume) in over the next 3 to 5 years. We have also embarked on digitization efforts at our factory in Pithampur (India), which will also be replicated for our next factory in Chennai, this will help our production processes and systems become more efficient and smarter. Our rejection rates have remained below 0.02% in India, demonstrating our commitment to quality. Overall, our entire Rajratan team is ready to ‘outperform’ on what we have already achieved.”

The company has started construction and civil works at the new Greenfield plant at Sipcot Industrial Park in Tamil Nadu, near Chennai, for TPA 60,000, to target domestic and overseas markets, a filing says. of research. This will be in addition to India’s current 72,000 TPA.

Rajratan Global Share Price History

The share price went from 37.28 to 880.00 over the past five years, representing a multibagger 2,260.52% return on investment. The title changed from 392.12 on July 26, 2021 at the current level over the past year, which represents a multibagger return of 124.42%. The stock went from 413.29 as of January 3, 2022, at the current level on a YTD basis, producing a multibagger return of 112.93% so far in 2022.

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