There are four reasons why one should not be investing in Rajratan Global Wires.
The company is relatively unknown, growth was flat in 2017-18, the principal raw material (steel) is passing through a sectoral rebound, and the stock is quoted 15 times 2017-18 earnings. But, there are a number of reasons why one would invest on the other hand.
Bead wire is a technologically-intensive proxy of the tyre sector, accounting for 4 per cent of the cost of a tyre, but critical to holding the tyre on the rim and resisting the action of the inflated pressure, which constantly tries to force it off.
