Rathi Steel stock gains after promoter increases stake

Rathi Steel and Power Limited (RSPL) is gaining investor attention after its promoter, PCR Holdings, increased its stake by 0.21%. This move shows ongoing confidence from the company's management. Over the past five years, the stock has provided impressive returns of over 700%, despite facing short-term fluctuations. PCR Holdings purchased 45,000 equity shares for about Rs 85.06 crore from the open market. This increase was reported in a recent filing by RSPL. As of December 2024, the promoters own 40.32% of total shares. Foreign Institutional Investors (FIIs) account for 8.94%, Domestic Institutional Investors (DIIs) hold 2.53%, while the public holds the remaining 48.22%. On the Bombay Stock Exchange, RSPL's stock rose by 3.59% to close at Rs 30.55. Despite a strong performance, the stock has dropped by 44.55% over the past year. The company reported net profits of Rs 6.94 crore in the third quarter of Fiscal Year 2025, a significant increase compared to Rs 1.79 crore in the same quarter last year. This profit boost was largely due to reduced expenses, which fell to Rs 119.61 crore from Rs 147.15 crore. Despite a drop in total income from Rs 148.94 crore to Rs 121.84 crore, profits rose by 199% for the nine months ending December 2024, demonstrating effective cost management. RSPL operates a steel plant in Uttar Pradesh and remains a significant player in India’s steel industry. The company’s strong financial performance and the recent stake acquisition show potential for future growth, making it a stock to watch amidst market volatility. Investors will be closely monitoring this situation.