Metal stock to be in focus on Thursday after this Capex expansion update. Details here

Rhetan TMT, a small-cap stock, is likely to attract investors’ interest in Thursday’s trade, August 20, after the company announced that power generation from its 1 MW (AC) captive ground-mounted solar power project has commenced successfully.

According to the company, the commencement of power generation marks the successful completion of its renewable energy initiative, following the completion of the requisite statutory approvals, infrastructure development, installation, testing, and commissioning activities.

The company said the solar power project is now operational and generating electricity for captive consumption at its manufacturing facility in Kadi, Gujarat, marking its transition from the implementation and commissioning stage to actual operations.

The company expects the project to support the energy requirements of its manufacturing facility and contribute to the integration of renewable energy into its manufacturing operations.

“The successful operationalization of the project further reflects the Company’s continued focus on strengthening its manufacturing infrastructure and adopting sustainable energy solutions as part of its long-term business strategy,” the company said in its regulatory filing.

The company has outlined several initiatives as part of its business strategy, including a greater focus on reducing costs through specific exercises across different functions, improving operational efficiency, and pursuing strategic expansion.

“The company is quite confident that the overall profitability would improve in a sustainable manner as a result of this strategy,” the company said in its FY25 annual report.

Shares down 30% in August

The company shares came under sharp selling pressure in August, falling 30% so far to ₹21.62 apiece, and the losses pushed the stock down by 38% from its 1-year high.

For the June-ended quarter (Q1FY27), the company reported revenue of ₹4.06 crore, lower on both a year-on-year and quarter-on-quarter basis, while operating expenses exceeded revenue, resulting in a negative operating margin of 0.66%.

The operating margin stood at 16.26% in the same period last year and 29.2% in the March-ended quarter.

However, net profit remained positive at ₹3.16 crore, aided by other income of ₹4.45 crore. In the June 2025 quarter, the company had reported a net profit of ₹0.76 crore, while net profit stood at ₹2.22 crore in the March-ended quarter.

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