1200% rally in five years! Small-cap multibagger stock under ₹50 jumps over 14%

Small-cap multibagger stock Rathi Steel & Power jumped over 18% on Thursday's session despite weak sentiment in the stock market today. Rathi Steel & Power share price closed 15.11% higher at ₹28.19 apiece on the BSE.

Recently, Rathi Steel & Power saw changes in its board and a brief shutdown of the Ghaziabad steel-melting shop, after a regulatory issue.

The company recently announced that its Steel Melting Shop located in Ghaziabad is temporarily closed starting from October 28, 2025, due to an order received from the Air Quality Management authority concerning the National Capital Region and surrounding areas.

Additionally, the company asserts that the details of this order are factually incorrect and that it was issued without granting the opportunity to respond to any inconsistencies. The company plans to take further necessary actions based on legal counsel.

The company delivered mixed but predominantly positive financial results for the first quarter of FY26 (which concluded in June 2025). Revenue for Q1 FY26 stood at ₹155.4 crore, representing an approximately 22% increase from ₹127.8 crore in Q1 FY25, indicative of higher sales volumes and better pricing.

Net Profit for Q1 FY26 ranged between ₹1.89 crore and ₹6.22 crore according to various reports, with an average EBIT margin of roughly 1.2%–4%, hinting at decreased profitability amid increasing costs. Market Capitalisation as of October 2025 was approximately ₹287 crore, categorising it as a small-cap stock.

Company Details

The company specializes in the production of rebars and wire rods. They operate two manufacturing facilities located in Ghaziabad, Uttar Pradesh, and Sambalpur, Orissa. The Ghaziabad Plant features steel rolling mills with a capacity of 125,000 tons per year. In Orissa, the facilities include a sponge iron production unit with an annual capacity of 300,000 tons, a steel melting shop capable of producing 500,000 tons annually, pig iron production of 200,000 tons per year, and a captive power plant with a capacity of 50 megawatts. The company markets its steel bars under the RATHI brand.

The Rathi Group was one of the pioneers in adopting Tor technology in India from Tor Isteg Steel Corporation in Luxembourg, through the Tor-Steel Research Foundation in the country. The company's latest product, Thermo-Mechanically Treated (TMT) Steel, has quickly become well-regarded in the construction sector.

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