Analysis: Rajratan Global Wire Limited

NSE:RAJRATAN Tyres & Tubes Market cap: ₹2.6K cr

Growth thesis

Rajratan Global Wire Ltd produces bead wire for tyres and steel cord for conveyor belts, operating in India, Thailand, and global markets. Key segments include the Chennai plant (60,000-ton capacity post-Phase-II expansion), Thailand’s 55,000-ton facility, and a new 10,000-ton steel cord project. Growth will accelerate via 17-18% volume expansion through Chennai’s 85-90% utilization, Thailand’s de-bottlenecking (+10% cap), and steel cord commercialization by Q1-FY27. EBITDA margins should stabilize at 13.5-14% as Chennai’s scale reduces per-ton costs and premium export mix (Europe/US) offsets raw material volatility. The 2027-29 outlook targets 180,000-200,000 tons total volume and ₹2,000 cr revenue, with operating leverage driving margin expansion as fixed costs are absorbed by higher throughput.

Why is Rajratan Global Wire Limited stock rising?

  • Volume growth target of 17-18% for FY27, driven by India (Chennai ramp-up) and exports
  • Chennai plant capacity expansion to 60,000 tons by Q2 FY27 with INR25 crores capex
  • Chennai sales target of ~35,000 tons in FY27
  • Steel cord (conveyor belt) project to start production trials in Q2 FY27, with peak revenue potential of INR150 crores in 2 years (FY29)
  • EBITDA margin expected to recover to 13-13.5% in Q1 FY27 after passing on raw material price increases

Research report

companyname: Rajratan Global Wire Limited ticker: RAJRATAN sector: Auto Ancillaries / Tyre & Wire Products Rajratan Global Wire Limited manufactures steel wire products for the tyre industry and engineering sectors. It is a specialty steel wire company, not a commodity steel producer. Its core business is tyre bead wire, the steel wire embedded in the bead of a tyre that ensures a tight fit on the rim. Without bead wire, a tyre cannot hold its shape on the wheel. The company was incorporated i...

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Catalysts

capex, margin expansion, new product segment, geographic expansion

Growth guidance

15-20% volume growth for FY27; export target 35,000-40,000 tons

Management consistency

mixed

RS rating: 61 Stage: Stage 2

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