BIS Approval Strengthens Rathi Steel & Power’s Position In Reinforcement Bar Market

In today's trading session, Rathi Steel and Power Ltd shares grew by 2.9 per cent to Rs 38.90 compared to the last traded price of Rs 37.81. The company's stock price has touched a 52-week high of Rs 97.81 and a low of Rs 36.91 in this period.

In a noteworthy development, Rathi Steel and Power Ltd have been granted permission by the Bureau of Indian Standards, a governing body of the Government of India, to use the standard mark on its SS 550 Reinforcement Bars. This certification, designated as SS 550, includes rods made of stainless steel bars measuring 32 millimetres in diameter for use in concrete reinforcement. The permit, which is effective until 1st February 2026, proves that the firm employs and operates manufacturing and testing sites that comply with the high-quality standards of the Bureau of Indian Standards.

The approval will boost the growth of Rathi Steel, as it will now be able to produce and sell SS 550 Reinforcement Bars of 32mm diameter under the approved standard. The company expects this certification to improve productivity through better capacity utilization and diversification of the product mix. Furthermore, it allows Rathi Steel to address the increasing market need for higher-strength reinforcement bars. The company intends to pursue all other diameters and sizes to develop new products and attain similar certifications.

Earlier, the company has announced stellar Q2FY25 results. Even though the net sales declined by 4% to Rs 121.43 crore as compared to Q2FY24, the company reported growth in net profit by 746% up to Rs 6.94 crore. This reflects improvement in operational efficiency and cost control. In the first half of FY25 (H1FY25), net sales for the company dropped to Rs 249.16 crore, an 8.80% decrease from the previous year, while net profit increased to Rs 9.63 crore, a 269% increase compared to H1FY24.

As of December 2024, the company's shareholding pattern includes a 40.32% stake held by promoters, 8.94% by FIIs, 2.53% by DIIs, and the general public holding the remaining 48.22%. As of today, the stock stands at Rs. 38.90, having risen by 5.4% from its 52-week low of Rs. 36.91, and astonishingly in the last five years, the stock has returned 1710% as a multibagger.

Incorporated in 1971, Rathi Steel and Power Ltd is one of the top producers and dealers of steel and allied commodities. The company's focus is on stainless steel wire rods and flats which serve numerous infrastructure, engineering, and household industries. Rathi Steel has an advanced production facility located in Ghaziabad, Uttar Pradesh, with the capability of rolling out 2,00,000 tons of steel per annum. Also, Rathi Steel and Power Ltd operates a steel melting shop and produces stainless steel billets with an annual capacity of over 90,000 tons.