Small-cap stock below ₹50: Shares of Rathi Steel and Power Limited surged 7 percent in intra-day trading on Monday, May 12, following a regulatory filing announcing that the company has received a prestigious certification from the Bureau of Indian Standards (BIS), India’s national standards authority. The development marks a significant step forward for the company’s manufacturing operations and product credibility in the infrastructure space.

The BIS has granted Rathi Steel a license to use the BIS Standard Mark on its Fe 500 Reinforcement Bars, categorized under the title “High Strength Deformed Steel Bars and Wires for Concrete Reinforcement, Fe 500.” The approval covers nominal bar sizes ranging from 8 mm to 25 mm in diameter and pertains specifically to the company’s TMT bar offerings.

According to the company, this license enhances its capacity to manufacture and test a wider range of Fe 500 reinforcement bars, which are widely used in concrete structures. The certification will enable Rathi Steel to optimize the use of its current facilities while also adding new product lines to meet increasing market demand. The license, issued on May 9, 2025 (CM/L–8700195219), remains valid until May 8, 2026, and is free from any penalties, suspensions, or corrective actions.

Stock Performance and Market Reaction

Following the announcement, the smallcap stock rose as much as 9.4 percent to an intra-day high of ₹30.65. Despite the sharp move, the stock remains 69 percent below its 52-week high of ₹97.81, recorded in July 2024. It touched a 52-week low of ₹24.50 in March 2025.

Over a five-year period, Rathi Steel has delivered multibagger returns of nearly 650 percent. However, the recent trend has been more volatile. In the past year, the stock has declined 55 percent. It has lost over 2 percent so far in May, after falling 7.5 percent in April. In contrast, it had surged 25 percent in March, snapping an eight-month losing streak between August 2024 and February 2025.

Rathi Steel and Power Limited, established in 1971 and headquartered in Ghaziabad, India, is engaged in the manufacturing and sale of steel and steel-related products across the country. The company’s diverse product portfolio includes stainless steel billets, flats, wire rods, bright bars, annealed wire rods, rebars, and wires. It also produces mild steel TMT bars and pickled bars and rods. Rathi Steel distributes its products through a network of dealers and retail outlets. Formerly known as Rathi Udyog Limited, the company adopted its current name in March 2008.

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