One of the small-cap steel stocks engaged in the manufacture of stainless steel wire and specialty wires. The stock has jumped to an intraday high of 2.96 percent after the commencement of production for specialty wire products with a capacity of 50,000 tons.
Stock Price Movements:
With a market capitalization of Rs. 7,499.03 crores, the shares of Bansal Wire Industries Limited have reached an intraday high of Rs. 502.20 per equity share, rising nearly around 2.98 percent from its previous day’s close price of Rs. 487.65. Since then, the stock has retreated and is currently trading at Rs. 479 per equity share.
What Happened:
Bansal Wire Industries Limited has expanded its production capacity by launching a specialty wire vertical, including bead wire, hose wire, and steel tyre cord, with a pilot project capacity of 50,000 tons.
This expansion positions the company to tap into the estimated 450,000 tons per annum market and meet growing demand.
Manufacturing Facilities:
Bansal Wire Industries Limited is the largest stainless steel wire manufacturer in India and the second-largest steel wire manufacturer by volume, holding significant market shares in both sectors.
The company produced 72,176 MTPA of stainless steel wire and 206,466 MTPA of steel wire in fiscal 2023, offering over 3,000 different product variants.
Product Offering:
Bansal Wire Industries offers a wide product range, including stainless steel wires, high and low-carbon steel wires, wire ropes, galvanized wires, and specialty wires (MTB, brass-coated). The company produces over 3,000 SKUs, serving industries such as automotive, engineering, infrastructure, hardware, and agriculture.
Future Prospects
Bansal Wire Industries is expanding its manufacturing capabilities by establishing one of the largest single-location steel wire facilities in Dadri, India. This expansion will boost production capacity and strengthen the company’s position in both domestic and international markets, supporting future growth.
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Recent quarter results and ratios:
Bansal Wire Industries Limited’s revenue has increased from Rs. 603 crore in Q2 FY24 to Rs. 701 crore in Q2 FY25, which has grown by 16.25 percent. The net profit of Bansal Wire Industries Limited has also grown by 83.33 percent from Rs. 18 crore in Q2 FY24 to Rs. 33 crore in Q2 FY25.
Bansal Wire Industries Limited’s revenue and net profit have grown at a CAGR of 10.73 percent and 30.45 percent, respectively, over the last five years.
In terms of return ratios, the company’s ROCE and ROE should be 107 percent and 80.2 percent, respectively. The debt-to-equity ratio of the company is to be 0.10x, which shows the company is almost debt-free. Bansal Wire Industries Limited’s EPS is to be Rs. 19.1.
Shareholding pattern
In September 2024, Bansal Wire Industries Limited had a majority stake held by the promoters at 77.99 percent, foreign institutional investors at 2.91 percent, domestic institutional investors at 14.92 percent, and the public at 4.18 percent.
Company Overview:
Bansal Wire Industries Limited (BWIL) was established in 1985 and is a leading manufacturer of various types of wires used in power, automotive, fencing, infrastructure, agriculture, and engineering sectors. The company produces high and low-carbon steel wires, galvanized wires, stainless steel wires, and specialty wires.
Written By – Nikhil Naik
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