Rhetan TMT: Stock Below Rs 20 Buzzing with Volumes to Watch Out

Introduction

The Nifty50 index isn’t the only one making headlines; the Nifty Smallcap 100 index also marked an all-time high on Monday. Amidst this rally, a small-cap stock that’s catching investors’ eyes is Rhetan TMT Ltd. This stock has surged about 28% in the last week alone and boasts a year-to-date gain of 65.50%. The recent surge in the stock price is accompanied by a substantial jump in the volumes. Volumes recorded, recently, were the highest in the last couple of years.

Company Overview

Rhetan TMT Ltd, headquartered in Gujarat, is a leading manufacturer of structured steel products such as TMT Bars and Round Bars. Recently, the company migrated from the BSE SME Platform to the Main Board of BSE Limited, reflecting its growth and ambitions.

Financial Performance

For Q1FY25, Rhetan TMT reported revenue of Rs. 19.34 crore and a net profit of Rs. 80.67 lakh. In FY24, the company achieved revenue of Rs. 64.77 crore with a net profit of Rs. 3.87 crore. As of June 2024, the Promoter Group holds a 62.11% stake in the company.

Strategic Expansion and Growth Plans

In August 2022, Rhetan TMT raised Rs. 56 crore through an SME IPO to fund capacity expansion at its Kadi plant, increasing production from 30,000 MT to 45,000 MT per annum. Additionally, the company executed a Memorandum of Understanding in January 2023 at the Vibrant Gujarat Global Summit to establish a 2 MW solar power plant for captive consumption, demonstrating its commitment to sustainable growth.

Business Operations and Market Position

Incorporated in 1984, Rhetan TMT Ltd is part of the diversified Lesha Group, which has interests in Oil and Gas, Steel, Infrastructure, Electronic Equipment, and Chemicals. The company operates a steel rolling mill at Kadi-Kalol Road, Mehsana, Gujarat, manufacturing TMT Bars and Round Bars, primarily used in the construction industry.

Leadership Vision

Mr. Shalin Shah, Managing Director of Rhetan TMT Ltd, expresses confidence in the company’s future, citing strategic initiatives, strong financials, and a commitment to excellence. The company plans to further expand its manufacturing capacity and secure additional funds for expansion and working capital needs.

Product Excellence

Rhetan TMT’s flagship TMT bars are renowned for their strength, ductility, and earthquake resistance, making them ideal for homes, high-rises, bridges, and other infrastructure projects. The company also produces high-quality mild steel round bars that meet international standards, widely used in engineering, forging, and other industrial applications.

Commitment to Sustainability and Community

Rhetan TMT Ltd aims to maintain sustainable growth while positively impacting society. By delivering top-quality products, the company supports the construction of resilient infrastructure and adds lasting value for its stakeholders.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.