RATHI BARS LTD (532918) - STOCK OF THE WEEK

Dear Investor friends, Today I am expressing my view on one iron/Steel product company.

RATHI BARS LTD (532918)

Rathi Bars Limited is 60 year old company, mainly engaged in manufacturing and trading of thermo mechanical treatment (TMT) reinforcement steel bars and low carbon billets. Company market the product Steel bars under the brand "RATHI", which is a popular brand and preferred choice of consumers in Northern India for its quality and reliability. The Company offers RATHI SHAKTIMAN construction steel bars. It has an in-house capacity of producing mild steel (MS) billets as raw materials for producing steel bars. 

Rathi manufacture TMT bars using the "THERMEX" technology, which is patent of the German collaborator M/s Hennigsdorfer Stahln Engineering GmbH, and the Company is licensed to use the same. Company one of exclusive licencees to use the "Thermex" technology to manufacture TMT bars in Northern India.

Rathi manufacture TMT bars using the "THERMEX" technology, which is patent of the German collaborator M/s Hennigsdorfer Stahln Engineering GmbH, and the Company is licensed to use the same. Company one of exclusive licencees to use the "Thermex" technology to manufacture TMT bars in Northern India.

The Company has a very strong and committed network of dealers to keep maintain the image of the Company and provide value-added service to the customers.

Retail Marketing: Company has retail network includes nearly 800 outlets spread all over Northern India they strives for the company. 
Direct Sales: Company having highly experienced and committed team of sales executives who cater directly to the needs of our Corporate and Government clients.

Company has strong customer base with government as well as private corporate giants. Following are the few of them.

Company website: Clickhere

FINANCIALS AND OUTLOOK

Company shares are trading in BSE.

Promoter holding 60.1 % in Sept Qtr. ( Increased from last qtr)  

Company posted 55.89 Cr top line in sept Qtr.

Net profit is 0.25 Cr bottom-line in sept Qtr.

Book value: Rs 47

Debt  to Equity: 0.19

Stock is trading at low PE compared to industry & its major peers.

Stock is trading at Rs 20

Company stocks are trading lower than the book value. PE of the stock is very low of 15 as compared to sector PE of 36. Construction and low cost housing will be a huge positive for the stock. Company has performed very well over QOQ basis.

Company is having a strong customer base.

Considering this performance, the stock has to catch the momentum and rerate in future, will give handsome returns to the investors in coming days.

NOTE : THE ABOVE IS NOT A RESEARCH REPORT NOR A RECOMMENDATION  BUT INFORMATION AS AVAILABLE ON PUBLIC DOMAIN. 

Registration status with SEBI: I am not registered with SEBI under the (Research Analyst) regulations 2014 and as per clarifications provided by SEBI: “Any person who makes recommendation or offers an opinion concerning securities or public offers only through public media is not required to obtain registration as research analyst under RA Regulations”