Capital Goods Stock In Focus After Securing Rs 10.75 Cr Order: Do You Own?

Rathi Steel and Power Limited's shares began higher on the BSE on Friday at Rs 63.00 each following the company's receipt of an approximate Rs 10.75 Cr agreement to provide stainless steel products to Bansal Wire Group, a leader in the downstream application of its products.

Depending on the needs of the customer, the order is anticipated to be completed in 30 or 45 days. The aforementioned order has been received by the company during regular business operations. This transaction is being conducted on arm's length basis and does not come under the category of related party transaction.

"Further, the customer has shared valuable feedback about improvement in our product quality post implementation of the mill modernisation project," said Rathi Steel and Power in a stock exchange filing.

The firm started carrying out the Cost Optimisation Project recently, on April 29, 2024. Nearly all of the project's key equipment has either already arrived at the site or is anticipated to do so shortly. The project entails timing the rolling and casting of steel. The aforementioned responsibility is anticipated to produce net fuel and yield savings when it is put into action and stabilises. It will lessen the carbon footprint, which will improve sustainability as well.

"The company is targeting to commence Trial Runs of the said project in the month of May 2024. The subsequent stabilisation period may take further time. There may also be some impact on production and sales volumes during the said period due to the above project activities," said Rathi Stee] and Power in a stock exchange filing commenting on the Cost Optimisation Project deal.

Rathi Steel And Power Ltd. was founded in 1971 and is a company that produces steel and steel-related products. It produces a wide range of wire rods and rebar for the Indian market.