The shares of Steel stock company, specializing in manufacturing, processing, and selling of steel products, consisting of engineering and other products, hit a 20 percent upper circuit upon securing an order from Tata Steel Ltd for approximately Rs. 1,764 Crores.
With a market capitalization of Rs. 1,213.67 crore on Monday, shares of BMW Industries Limited hit a 20 percent upper circuit, making a high of Rs. 55.28 per share compared to its previous closing price of Rs. 46.07 per share.
What Happened
BMW Industries Limited, engaged in the manufacturing, processing, and selling of steel products, consisting of engineering and other products, has received a significant work order from Tata Steel Limited.
The order is for the processing and conversion of coils at its Jamshedpur facility, valued at approximately Rs. 1,764 crore and spanning up to March 31, 2029. This contract, part of the company’s ordinary course of business, is expected to contribute meaningfully to BMW Industries’ revenue throughout the agreement.
About the Company
BMW Industries Limited, established in 1981 and headquartered in Kolkata, is one of India’s leading steel processing companies. It operates seven manufacturing units, specializing in products like hot rolled and cold rolled steel coils, TMT bars, tubes, galvanized sheets, pipes, and transmission line towers.
Expansion plans
BMW Industries Limited has extended its tube manufacturing contract until the first half of 2027, with an expected revenue of Rs. 365 crores. The company has recently increased its total production capacity to 534,000 metric tons, with production reaching 175,000 metric tons. Looking ahead, BMW Industries plans to further expand its capacity to 700,000 metric tons and target a production level of 300,000 metric tons by FY26.
Finanacials & Others
The company’s revenue rose by 2.4 percent from Rs. 145.19 crore to Rs. 148.8 crore in Q4FY24-25. Meanwhile, the Net profit increased from Rs. 11.49 crores to Rs. 17.23 crores during the same period.
The company has a P/E ratio of 13.55, lower than the industry average of 21.51, and a PEG ratio of 0.53, indicating potential undervaluation. The company maintains a low debt-to-equity ratio of 0.27, and promoters hold over 65 percent of the shares.
Written by Sridhar J
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