The shares of this electrode manufacturing company jumps 2 percent after the company announcing strong Q2 FY24 results. In six months, the shares have delivered more than 50 percent returns to its shareholders.
With a market capitalization of Rs. 77.64 crores, the shares of Rasi Electrodes Ltd started Wednesday’s trading session on a higher note at Rs. 26.18 compared to its previous close at Rs.24.94. The share hit a high of Rs. 28.29, gaining around 2 percent, and currently trading at Rs. 25.05 apiece.
Such a positive movement was observed after the company announced its June-September results. The company’s revenue increased by 15 percent from Rs. 18.79 crores during the June quarter to Rs. 21.54 crores in the September quarter. In addition, the net profit magnified by 73 percent from Rs. 53.70 crores to Rs. 93.16 crores during the same timeframe.
Comparing these metrics on a YoY basis, the revenue inclined by 2 percent from Rs. 22.14 crores in Q2 FY23 to Rs. 21.54 crores during Q2 FY24. Furthermore, the net profit marginally increased by 2 percent from Rs. 91.60 crores to Rs. 93.16 crores.
Looking at the important ratios, the return on equity (RoE) drastically increased from 8.04 percent in FY21-22 to 10.76 percent in FY22-23 and the return on capital employed improved from 9.85 percent to 13.46 percent in the same period.
According to the latest shareholding pattern, the Public or the Retail Investors have a huge holding of 72.04 percent in the company and the remaining 27.96 percent of stakes are with the Promoters.
Headquartered in Chennai, Rasi Electrodes Ltd was incorporated in the year 1994. The company is engaged in manufacturing arc welding electrodes and copper-coated mild steel (CCMS) wire used by engineering, chemicals, and other manufacturing industries.
Written By Vaibhav Patil
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