Rs 44 to Rs 880: This steel wire stock turned into a multibagger in three years; gained after three sessions today

Shares of multibagger Rajratan Global Wire Ltd have delivered stellar returns in the last three years. The multibagger stock, which closed at Rs 44.2 on June 19, 2020, rose to Rs 880.15 on the BSE on June 20, 2023. An amount of Rs 1 lakh invested in the shares of bead wire major Rajratan Global Wire three years ago would have turned into Rs 19.91 lakh today. In comparison, Sensex has risen 81.37 per cent during the period.

Rajratan Global Wire shares hit an intraday high of Rs 880.15, rising 6.83% today against the previous close of Rs 823.90 on BSE. The stock has recovered after three sessions of fall. It was among the top BSE gainers today. The steel wire stock has gained 46.21% in a year but lost 3.14 per cent in 2023. However, shares of Rajratan Global Wire have delivered 13.42% returns in a month.

Total 0.34 lakh shares of the firm changed hands amounting to a turnover of Rs 2.93 crore on BSE today. The market cap of the firm rose to Rs 4382.81 crore on BSE.

The stock hit a 52-week high of Rs 1409.05 on September 8, 2022 and a 52-week low of Rs 560 on June 20, 2022.

In terms of technicals, the relative strength index (RSI) of Rajratan Global Wire stands at 57.6, signaling it's neither oversold nor overbought. Rajratan Global Wire stock has a one-year beta of 0.7, indicating low volatility during the period. Shares of Rajratan Global Wire are trading higher than the 5 day, 20 day, 50 day and 100 day moving averages but lower than 200 day moving averages.

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The firm logged a 45.26% fall in net profit to Rs 20.27 crore for the quarter ended March 2023 as against net profit of Rs 37.03 crore during the quarter ended March 2022. Sales fell 11.37% to Rs 219.43 crore in the quarter ended March 2023 as against Rs 247.57 crore during the quarter ended March 2022.

On a quarter-on-quarter basis, profit fell 7.86% from Rs 22 crore in the December quarter of the previous fiscal. Sales rose 9.74% from Rs 199.95 crore in the December 2022 quarter.

On an annual basis, net profit slipped 19.47% to Rs 100.12 crore for the fiscal ended March 2023 against Rs 124.33 crore for the fiscal ended March 2022. Revenue was flat at Rs 895.37 crore in the March 2023 fiscal against Rs 892.86 crore for the fiscal ended March 2022.

Rajratan Global Wire is engaged in the business of manufacturing and sale of tyre bead wires. The company produces wires for the tire and construction industries.

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