Rathi Steel and Power: A Stock to Watch Amid Strategic Stake Acquisition

The spotlight is back on Rathi Steel and Power as its promoter, PCR Holdings—formerly known as Archit Securities—has made headlines by increasing its stake in the company. This move comes as PCR Holdings acquired an additional 0.21% stake, amounting to 45,000 equity shares valued at ₹85,06,30,030. This strategic acquisition signals a growing confidence in the company’s future, making it a key stock to monitor in the upcoming trading session.

Strategic Stake Increase by PCR Holdings

In a recent exchange filing, Rathi Steel and Power confirmed that PCR Holdings has bolstered its ownership in the company. The increase in shareholding, effective as of March 21, 2025, is indicative of the promoter group’s unwavering confidence in the company’s growth potential.

• Key Details:
  • Stake Increase: 0.21%
  • Shares Acquired: 45,000
  • Transaction Value: ₹85,06,30,030
  • Date of Acquisition: March 21, 2025

Ownership Structure Reflects Confidence

As of December 2024, the company’s ownership structure showcases a solid foundation with promoters holding 40.32% of the shares. The distribution of ownership is as follows:

• Promoters: 40.32%
• Foreign Institutional Investors (FIIs): 8.94%
• Domestic Institutional Investors (DIIs): 2.53%
• Public Shareholding: 48.22%

The stock has shown remarkable performance over the last five years, delivering over 700% in returns, further solidifying investor trust in Rathi Steel and Power.

Recent Market Performance

On the Bombay Stock Exchange (BSE), Rathi Steel and Power shares witnessed a 3.59% increase, closing at ₹30.55 on the last trading day. Over the past week, the stock has climbed nearly 6%, showcasing its resilience and appeal to investors.

• Long-Term Performance:
  • Five-Year Growth: 663.75%
  • One-Year Decline: 44.55%

Q3 Financial Results Highlight Strong Net Profit Growth

Rathi Steel and Power’s financial performance for the third quarter of FY25 has been noteworthy, with a net profit of ₹6.94 crore for the September quarter, significantly up from ₹1.79 crore in the same quarter last year. This increase was primarily attributed to reduced expenses.

• Financial Snapshot:
  • Total Income: ₹121.84 crore (down from ₹148.94 crore YoY)
  • Total Expenses: ₹119.61 crore (down from ₹147.15 crore YoY)

Moreover, Rathi Steel and Power operates a 200,000-tonne steel plant in Uttar Pradesh, which plays a crucial role in its production capabilities.

Looking Ahead

Despite a slight decline in total income, the company’s commitment to cost efficiency has resulted in a remarkable 199% increase in net profit from April to December 2024, totaling ₹10.16 crore. This performance, coupled with the recent stake acquisition by PCR Holdings, positions Rathi Steel and Power as a stock to keep an eye on for potential growth.

Investors should remain vigilant as the market dynamics evolve, and continue to watch for updates on Rathi Steel and Power’s performance.