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This smallcap stock zooms over 50% in 4 days; what's fuelling the rally?

Rajratan Global share price today: Shares of Rajratan Global Wire have rallied 19 per cent to ₹462 on the BSE in Wednesday's intra-day trade amid heavy volumes. The stock price of the smallcap auto components & equipments maker is trading higher for the fourth straight day, zooming 54 per cent during the period. At 10:23 am; Rajratan Global Wire was quoting 14 per cent higher at ₹443.20, as compared to 0.23 per cent rise in the BSE Sensex. The average trading volumes on the counter jumped multiple-fold, with a combined nearly 2 million equity shares having changed hands on the NSE and BSE. Rajratan Global Wire share past price movement Share price of Rajratan Global Wire had hit a 52-week high of ₹668 on April 23, 2024. Currently, the stock is trading 31 per cent lower from its 52-week high price. Since listing on May 22, 2020, the market price of Rajratan Global Wire has skyrocketed 1,083 per cent, or rose 12.5 times, from ₹37. What's fuelling the rally? In the fourth quarter (January to March) of the financial year 2024-25 (Q4FY25), Rajratan Global Wire has reported 63.3 per cent sequential growth in consolidated profit after tax (PAT) at ₹15.20 crore, from ₹12.34 crore in Q3FY25. However, on a year-on-year (YoY) basis, PAT declined 25 per cent from ₹20.25 crore in Q4FY24. Revenue grew 15.1 per cent Q-o-Q and 5 per cent Y-o-Y at ₹33.33 crore. Earnings before interest, taxes, depreciation, and amortisation (Ebitda) margins improved 124 bps to 13.26 per cent from 12.02 per cent in Q3FY25. Higher realisations, increased sales to marquee customers, deliberately low exposure to cycle tyre makers and sharper percentage increase in sales to automotive tyre companies, coated wire customers and exports, enhanced the company's profitability. ALSO READ | During the last quarter, its Board of Directors approved the conversion of low value-added black wire capacity to higher value-added wire rope which will empower the company to achieve similar profitability as its India bead wire business. June 2025 quarter (Q1FY26) outlook The management expects higher sales volumes in June 2025 quarter (Q1FY26) and better amortisation of fixed costs. The company expects increased capacity utilisation of the new Chennai plant and higher exports from India. The company's product is not affected by reciprocal US tariffs. 'On the overall we remain cautiously optimistic in a dynamic global scenario. We expect the scenario to play out positively for Rajratan, reinforcing our sustainable growth efforts. We look forward to commencing FY 2025-26 on a positive note,' the management said. Capacity addition or product launch The company's board of directors approved the procurement of machinery for the production of a new value-added product, Wire Rope, at the Pithampur plant. This strategic initiative is aimed at converting the existing 12,000 TPA capacity of Black Wire into 10,000 TPA of Wire Rope, thereby augmenting the overall value proposition and enhancing the Company's product portfolio. ALSO READ | About Rajratan Global Wire Rajratan Global Wire is a leading bead wire manufacturer and supplier of high quality products. The Company has a capacity of 72,000 TPA (60,000 TPA for bead wire) in India and 60,000 TPA in Thailand. The Company has set up a Greenfield unit in Chennai with a capacity to go up to 60,000 TPA, of which 30,000 TPA is currently being installed in Phase 1. The company is the only bead wire manufacturer in Thailand. The company is working towards increasing market share in the bead wire industry in both Thailand and India.