By Lithin Reddy
Published: Friday, Jan 28, 2022, 18:58 [IST]
Rajratan Global Wire board approved stock split in the ratio of 1:5, for every one share held by a shareholder, it will become 5 shares. Rajratan Global wire has already delivered multi-bagger returns, in just one year the stock has given 371% returns. The company has shown a good profit growth of 61.39% fro the past 3 years, good revenue growth of 15.61% for the past 3 years, the company has been maintaining a healthy ROCE of 20.29% over the past 3 years, and also the company has an efficient cash conversion cycle of 73.59 days.
About the company
Rajratan Global Wire is one of the leading manufacturers of high carbon steel wire in India, specializing in automotive tyre bead wire, high-quality spring & rope wires are other specialty products of the company.
Rajratan Global wire has the most modern factory at Pithampur, with its state-of-art plant Rajratan global Wire is equipped to produce high-value steel wires with precise product characteristics.
Rajratan Global wire has achieved a leadership position in the tyre bead wire business in India, having a global scale of operations & to take the tradition of quality & excellence further, Rajratan global wire has formed a 100% subsidiary company Rajratan Thai Wire and started an ultra-modern facility to produce automotive tyre bead wire in Thailand. This is a true step towards the globalization efforts of Rajratan Global Wire.
Why does a company announce stock split
when any company announces a stock split, the main reason behind the decision is to bring down the price of the stock. Whenever a company thinks its stock price is too high and retail investors will not show interest, then the company decides to split the stock to bring down the price in order to increase the participation of retail investors. After the stock split, the value of investment remains the same for an investor, but the number of shares will increase.
Can we buy now?
Recently Rajratan global wire has announced its Q3 results, the company’s net sales were at Rs 135 crore, up 31.52% from Rs 103 crore in the same quarter last year, net profit at Rs 17 crore, up 77% from 19 crores in the same quarter last year, EBITDA stands at 28 crores, up 59% from Rs. 17 crore in the same quarter last year.
Rajratan global wire is consistently performing well, the company is currently trading at high valuations, but one can buy for the long term in multiple tranches. The company is very strong in terms of financials and fundamentals.
Rajratan Global has huge potential and opportunities and the company is the biggest leader in its segment with big companies as its customers.
Customers of Rajratan Global Wire
Some of the big customers of Rajratan Global Wire are:
- Apollo Tyres.
- JK tyre.
- Good Year.
- TVS Tyres.
- Birla Tyres.
Almost every big Tyre company is a customer of Rajratan Global Wire.
As the automobile segment grows, tyres segment grows, as tyre segment grows, Rajaratn Global Wire business will grow.
The article is just for educational purposes, investing in equity poses a financial risk, before investing please consult your financial advisor, we are not liable for any losses caused as a result of decisions based on the article.