Multibagger stock: Shares of small-cap company Rathi Steel and Power rallied 5 per cent on Tuesday, October 1 following the company’s announcement regarding a new project integration.
The board of directors approved the establishment of a forward integration project, which includes the production of stainless steel wires, bright bars, and annealed and pickled products, with a projected cost of up to ₹50 crore.
Following the announcement, this small-cap stock, priced below ₹100, was trading in the green, up 4.58 per cent at ₹65.24 apiece around 11.23 am on the BSE. It rose to the day's high of ₹65.49.
Rathi Steel and Power share price hit a 52-week high of ₹97.81 on July 30, 2024. Meanwhile, the 52-week low stands at ₹20.35, touched on December 4, 2023.
The company enjoys a market capitalisation of ₹554.95 crore.
In a letter to the Bombay Stock Exchange (BSE) dated September 30, 2024, the company stated that this project will not only help to optimise existing capacity by facilitating self-consumption of part capacity but also enable the company to cater to the increasing demand for these products in various sectors, including Energy, Electric Vehicle (EV), Engineering, and Defence industries.
The project will be developed on surplus land at Rathi Steel’s current facilities in Ghaziabad, Uttar Pradesh, which will help reduce logistics and overhead costs. The company plans to pursue necessary approvals and implement the project based on its technical and commercial feasibility.
Disclaimer: The views and recommendations provided in this analysis are those of individual analysts or broking companies, not Mint. We strongly advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and individual circumstances may vary.
