Up 2000% (20x in 2.5 years) - Rajratan Global Wire Ltd was recommended in Feb'20 & again in Sep'20 around 47-50rs per share (price after 1:5 stock split); CMP 977.
Are you looking for a real wealth creators? Then bet on niche/focused, small, ambitious businesses.
Note: Rajratan Global stock idea was 1st published in Feb 2020 @ 47rs per share, price after 1:5 split (CMP 977) and again it was re-recommended in Sep’20 (updated report attached) to all our PAID subscribers of Super 6 Platinum Plan & Top 10 Gold Plan where we identify 10 best-in-class small-cap multibagger stocks from small cap segment in a year + 6 mid-cap game changer stocks. Today we are making this report public for the benefit of all those clients who wish to join us. To join WhatsApp to +91 9354179604 (Sanjay Gupta)
Multibagger Stock Idea - Rajratan Global Wire Ltd - Feb 2020
Note: This write-up was shared with the clients in Feb 2022.
Rajratan is the second largest bead wire manufacturer in Asia (Excluding China). Bead wire is a critical component in all types of tyres. It holds the tyre to the rim while resisting inflated pressure. 84% of this company’s revenue is from Bead wires.
Rajratan manufactures High Carbon Steel wires too. 13% of the revenue comes from this segment. It has got two manufacturing units located in Indore (India) and Ratchaburi (Thailand). Its Thailand Capacity increased from 26000 TPA to 34800 TPA.
Thailand is Asia’s largest tyre manufacturing hub. Rajratan is the only manufacturer of bead wires in Thailand. US tariffs on Chinese tyres is a booster shot for Thailand Tyre Industry. There are large investments made by global tyre players in Thailand.
One of the competitors (Aradhyr Steel) in India has shut down around Feb 2019. They had a debt of around Rs.250 crore, capacity of 8000-9000 tonne per year for bead wire. Other competitors in India are Tata Steel and Aarti Steels. Presently, both are running in full capacity. Foreign competitors are primarily from Malaysia, Vietnam and China. Possibility for new competitors is low because the learning curve is too long for this industry. Rajratan claims a market share of 40% of bead wire market share in India. It is estimated that around 3% of a tyre’s manufacturing cost is Bead wires. Due to this, pricing is not a major issue for suppliers. It is quality that matters for suppliers.
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