Rajratan Global Wire’s shares, priced at ₹156.70 three years ago, are now trading at ₹638, marking a significant increase of 308%. The stock has seen an even more impressive surge of 1780% since May 2020 and a 500% jump between May 2021 and September 2022.
In terms of yearly performance, the stock saw a remarkable rise of 355% in CY21 and another impressive increase of 122% in CY22. However, it experienced a decline of 12.56% in CY23 due to profit booking by investors.
Rajratan Global Wire is a leading bead wire manufacturer globally, supplying bead wire to renowned clients worldwide. With operational capacity of 72,000 TPA in India and an additional 60,000 TPA in Thailand, it has also established a new unit in Chennai with a capacity of 60,000 TPA.
The company holds a significant position as the sole bead wire manufacturer in Thailand and serves major clients like Bridgestone, CEAT, Michelin, Yokohama, Apollo Tyres, and BKT.
Market Trends:
Vehicle demand in India has surged in recent years due to increased economic activity, a growing working population, and changing consumer preferences favoring vehicle ownership. Passenger vehicle sales in fiscal year 2023–24 reached record levels, with over 42 lakh units sold, driven by strong growth in the SUV segment.
Two-wheeler sales also saw a significant increase, attributed to factors like expanded model availability and positive market sentiment, especially in the rural market post-COVID-19.
Regulatory measures such as phasing out old vehicles and non-renewal of registration for 15-year-old government vehicles have further boosted demand for new vehicles, leading to increased tire sales and benefiting companies like Rajratan Global Wire.
Financials and Outlook:
In Q3 FY24, the company reported a 16.5% increase in consolidated revenue to ₹233 crore, with a profit after tax of ₹20 crore. 59% of the revenue came from operations in India, while the remaining 41% came from operations in Thailand.
Looking ahead, government initiatives such as PLI schemes, Make in India, and Atmanirbhar Bharat are expected to drive demand for tires, supporting the growth and expansion of companies like Rajratan Global Wire.
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