The company, which has its presence in the production and sale of tyre beads and carbon steel wire, made a key announcement which caused the stock to hit an upper circuit of 20 percent.
Price Movement
With a market capitalization of Rs 1,973 crore, the shares of Rajratan Global Wire are currently trading at Rs 388.55 per share, down by 42 percent from its 52-week high of Rs 678 per share. During the last six months, the stock has given a negative return of 32 percent.
The reason behind this rally
On Monday, the company announced its financial results and made a couple of announcements. The company reported a surge of 5 percent in its YoY revenue collection. It reported Rs 251 crore in Q4 FY25 as compared to Q4 FY24 revenue of Rs 240 crore. On a QoQ basis, it reported a revenue of Rs 218 crore, up by 15 percent.
However, its net profit declined 25 percent YoY to Rs 15 crore in Q4 FY25 from Rs 20 crore in Q4 FY24. On a QoQ basis, it reported a net profit of 9 crore, up by 67 percent.
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The board of directors has approved a final dividend of Rs 2 per equity share. Also, it reappointed Mr. Sanjeev Sood as an Independent Director for a second term of five years, i.e., from 21 April 2025, to 20 April 2030.
Additionally, the Board of Directors has sanctioned the acquisition of machinery for the manufacturing of a new value-added product, Wire Rope, at the Pithampur Plant. This strategic initiative will be used to transform the existing 12,000 TPA (tons per annum) capacity of Black Wire into 10,000 TPA of Wire Rope. This initiative is intended to enhance the overall value proposition of the company by diversifying and strengthening its product basket.
About the company
Rajratan Global Wire Limited is an Indian company that is mainly involved in the production and sale of tyre bead wire. The company specializes in the production of tyre bead wire and high carbon steel wire.
Apart from tyre bead wire, the company’s high carbon steel wire is used in a variety of products including mechanical and high-performance springs, bedding and seating parts, wire ropes and cables, conveyor belts, automotive cables, steel fibers, and cut wire shots for shot blasting and pinning.
Written by Satyajeet Mukherjee
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