Rhetan TMT Stock Hits Upper Circuit As Bajaj Tubular MoU Opens Up Rs 250-300 Crore Business Opportunity

Rhetan TMT shares were in focus on Monday, September 28, after the stock hit its upper circuit following the company's announcement of a new business arrangement with Bajaj Tubular Products. The stock gained nearly 5% during the session even as the broader equity market came under heavy selling pressure, with the BSE Sensex ending 1.52% lower at 72,771 points.

The sharp move in Rhetan TMT came after the company disclosed a memorandum of understanding (MoU) with Bajaj Tubular Products for the proposed supply of around 20,000 metric ton of TMT bars over 24 months. The development put the small-cap steel stock on investors' radar, particularly because of the potential scale of the proposed business association.

Rhetan TMT Share Price Today

Rhetan TMT shares closed 4.94% higher at Rs 15.93 on the BSE on Monday. The stock also touched Rs 15.93 during the session, hitting its upper circuit, while Rs 14.43 was recorded as the day's low.

At the closing price, Rhetan TMT's market capitalisation stood at around Rs 1,269.42 crore. The stock's rise stood out against the broader market weakness, as investors reacted to the company's latest business update.

However, the day's rally needs to be viewed in the context of the stock's recent performance. Rhetan TMT shares have declined over the past six months, making Monday's upper-circuit move a notable reversal in the near term.

Why Is Rhetan TMT Stock In Focus?

The immediate trigger for the stock was the MoU signed with Bajaj Tubular Products. Under the proposed arrangement, Bajaj Tubular Products intends to procure around 20,000 MT of TMT bars from Rhetan TMT over a 24-month period.

The company has indicated a potential commercial value of around Rs 250 crore to Rs 300 crore for the proposed arrangement during the two-year period. The figure is indicative and could change depending on actual orders, product mix, market prices and business requirements.

For Rhetan TMT, the development is significant because the proposed supply arrangement could provide additional business visibility if the indicated volumes translate into purchase orders over the coming months.

While the size of the proposed arrangement attracted market attention, Rhetan TMT has clarified that the MoU should not be considered a firm order for the entire 20,000 MT quantity.

The proposed supplies will be executed through individual purchase orders and will depend on Bajaj Tubular Products' actual business and project requirements. Supply schedules will also be mutually agreed between the two companies.

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