Up over 1000% in 5 years! This multibagger small-cap stock surges 50% in four sessions. Do you own?

Multibagger small-cap stock: Extending its bull run for the fourth consecutive trading session, shares of Rajratan Global Wire jumped another 18.45% in intraday trade on Wednesday, April 22, hitting a two-month high of ₹462.75 apiece.

In the previous trading session, the company's shares had locked in the 20% upper circuit limit following the release of its March quarter results (Q4FY25). The consolidated net profit rose 63.3% QoQ in Q4FY24 to ₹15 crore, although it declined 25% on a YoY basis.

Revenue from operations during the reporting quarter stood at ₹251 crore, compared to ₹240 crore in the previous quarter. The company anticipates higher sales volumes driven by continued demand momentum in FY26. Better amortization of fixed costs, supported by improved operational efficiency, is likely to aid margins. Capacity utilisation at the new Chennai plant is also expected to rise further, contributing meaningfully to overall production.

Additionally, the company foresees stronger export activity from India, building on the initial traction seen in recent quarters. Sunil Chordia, Chairman of Rajratan Global Wire, said FY2024-25 ended on a positive note due to several factors. “The most critical among these was the increased activity at our Chennai facility and the green shoots of our export plans from India,” he said.

He added, “The last quarter witnessed 85-90% utilisation in our Thailand and Pithampur facilities, which augurs well for our overall profitability. The improvement in volumes from our Chennai plant, as well as our strategy to avoid selling in the low-end bicycle tyre market, augurs well for our Chennai business, helping us consolidate strongly at the organizational level.”

“Higher realizations, increased sales to marquee customers, deliberately low exposure to cycle tyre makers, and a sharper percentage increase in sales to automotive tyre companies, coated wire customers, and exports have all enhanced our profitability,” Chordia said.

Rajratan Global Wire share price jumps over 50% in 4 sessions

The company’s shares have bounced back sharply in recent sessions, rising by 54% in just the last four trading days (including today). Despite this stellar rally, the stock is still down by 68% from its record high of ₹1,409 apiece, attained in September 2022. However, looking at its long-term performance, the stock has surged by 1,050% over the last five years.

Rajratan Global Wire is one of the world’s leading bead wire manufacturers, boasting a strong global presence in supplying bead wire to esteemed clientele. The company has a capacity of 72,000 TPA (including 60,000 TPA for bead wire) in India and 60,000 TPA in Thailand. It has also set up a greenfield unit in Chennai with a planned capacity of up to 60,000 TPA, of which 30,000 TPA is currently being installed in Phase 1.

A noteworthy distinction is that Rajratan is the sole bead wire manufacturer in Thailand. Among its prominent clients are industry giants such as Bridgestone, CEAT, Michelin, Yokohama, Apollo Tyres, and BKT, according to the company’s recent exchange filing.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.