A Gem To Hold On To: Rajratan Gave 1,752% Returns In Just 2 Years
If you had invested ₹1 lakh in August 2020, you could have had ₹18.5 lakhs today! This multibagger yielded 1,752% returns in just 2 years. Here’s a quick peek at the company.
➿ Stock: Rajratan Global Wire Ltd.
➿ NSE: $RAJRATAN
🌱 About the Company
Incorporated in 1989 and headquartered in Indore, Rajratan Global Wires manufactures products related to tyre bead wire segments like bead wire and high carbon steel wire with a specialisation in thread bead wire (TBW). Tyre bead wire is mostly used in automobile tyres and earth-moving equipment. It is also used in aircraft for its strength as it negates vibrations while driving. High-carbon steel wire is mostly used in the automobile, construction and engineering industries. They are one of Asia’s largest bead wire manufacturers.
🌏 Rajratan Thailand
The company’s subsidiary, Rajratan Thailand, is the only bead wire manufacturer in Thailand and has a 25% market share there. Rajratan India is the largest manufacturer of TBW in India with a market share of 50%. There is a high entry barrier in the TBW industry due to the long approval cycle by tyre manufacturers as it is a critical product.
📝 Esteemed Clientele
Rajratan Global’s client portfolio contributed to 39% of the total revenue of the company. This includes companies like:
◾ Apollo Tyres
◾ Birla Tyres
◾ Sentury Tyre
◾ Toyo Tyres
💰 Tax Benefits
Rajratan Thailand’s subsidiary receives a tax benefit on the profits reported on all the production in excess of 22,000 tonnes per annum (TPA) for a period of eight years. This benefit is expected to expire by 2025. They also plan to expand their Thailand plant’s capacity to 60,000 TPA.
On August 31, 2020, the shares of the company were trading at ₹60.90, while they were priced at ₹1,128.45 as of August 30, 2022.