Rajratan Global Wire Limited (RGWL) is one of the leading manufacturer of High Carbon Steel Wire in India – specializing in Automotive Tyre Bead Wire, high quality Spring & Rope Wires are other speciality products of the company.
In a short span of time RGWL has achieved leadership position in Tyre Bead Wire business in India having a global scale of operation & to take the tradition of quality & excellence further, RGWL has formed a 100% subsidiary company Rajratan Thai Wire Co. Ltd. (RTWL) and started an ultra modern facility to produce Automotive Tyre Bead Wire in Thailand. This is a true step towards globalization efforts of RGWL.
Please read through below details of company products
Tyre Bead Wire :
Tyre Bead Wire is a high carbon bronze coated steel wire used in all tyres. The main function of bead wire is to hold the tyre on the rim and to resist the action of the inflated pressure, which constantly tries to force it off. The bead is the crucial link through which the vehicle load is transferred from rim to the tyre. It significantly affects the safety, strength, and the durability of tyres.
PC Wire & Strands
The use of high tensile steel in prestressing concrete results in considerable saving of cement and steel. Pre stressed concrete wires and strands have good applications in the construction of bridges, silos, buildings, dams, atomic reactor vessels, stadia, airport hangars, runways, and in the manufacture of mass produced components like railway sleepers, water pipes, electricity poles, beams, hollow and solid (extruded) slabs etc.
It has a small equity of 4.35 Cr with majority stock with promoters and HNI. Company has delivered EPS of approx 17 in FY14-15 this will further improve with growth in economy and infrastructure which should result in rise of demand for company's product which mainly cater to tyre and construction industry.
Major holding approx 85% is with promoters and HNI so it trades in very low volume on stock exchange.You may start accumulating in small quantities it can give excellent results in long run and explode from current levels...a real multi bagger in making.........grab it at CMP
Strong Buy
Sir, thanks for all ur stock ideas. In case of rajratan isnt its high debt a cause o worry?
ReplyDeleteHigh debt is a cause of concern that is the reason stock is available at Low multiple..Having said that all industrial and business units barring few are mainly dependent on external borrowing from banks and financial institution and pay good amount towards interest that is how the businesses and economy runs.
ReplyDeleteThe interest burden is approx 4% of total turnover and after debiting the interest burden company is managing to generate good profit on equity every year.The business model is good and it is supplying to key tyre manufacturer such as JK,Ceat,Apollo and MRF. With growth anticipated in economy auto and infrastructure should do well and the interest rates are getting ready to fall sooner or later and profitability should improve .Improve in profits should help company to pay off some debt. i feel it is good time to invest in the company.Very high promoter holding reflects the confidence level in the business.