The shares of the largest stainless steel wire manufacturer gained up to 9 percent after the company’s net profit and revenue increased by 53 percent and 23 percent YoY, respectively in Q1FY25.
With a market capitalization of Rs 5,856.76 crore, the shares of Bansal Wire Industries Ltd were trading at Rs 373.50 per share, increasing around 6 percent as compared to the previous closing price of Rs 352.40 apiece.
Reason for rise:-
The share of the company has seen positive movement after Bansal Wire Industries Ltd’s revenue plummeted by 19 percent on a quarter-on-quarter basis from Rs. 571 crores in Q4FY24 to Rs. 677 crores in Q1FY25. Further, revenue magnified by 23 percent yearly from Rs 548 crores in Q1FY24 to Rs. 677 crores in Q1FY25.
Bansal Wire Industries Ltd’s net profit increased by 30 percent on a quarter-on-quarter basis from Rs. 20 crores in Q4FY24 to Rs 26 in Q1FY25. Further, on a year-on-year basis also net profit magnified drastically by 53 percent from Rs. 17 crores in Q1FY24 to Rs. 26 crores in Q1FY25.
Network & Manufacturing facility:-
The firm exports to more than 50 nations. It has 14 representatives worldwide, including Bangladesh, Brazil, France, Germany, Israel, Italy, the Netherlands, South Korea, South Africa, Sri Lanka, Turkey, the United Kingdom, the United States, and Vietnam. The company’s export turnover increased at a CAGR of 47.15% during the previous three fiscal years.
The firm has four production facilities at Mohan Nagar, Ghaziabad; Loni Industrial Area, Ghaziabad; and Bahadurgarh, Jhajjar, Haryana. Two of the four units are located in the Loni Industrial Area in Ghaziabad.
Ratio analysis:-
Examining the company’s crucial ratio, return on equity declined from 25.71 percent in FY21-22 to 20.96 percent in FY22-23, while during the same time frame return on capital employed also inclined from 29.20 percent to 21.46 percent. In contrast, the net profit margin (NPM) stands at 2.48 percent in fiscal year 22-23.
Company profile:-
Bansal Wire Industries Limited supports several industries including automotive, general engineering, infrastructure, hardware, consumer durables, power & transmission, agricultural, and vehicle replacement. Its goods are sold under the brand name ‘BANSAL.’ Bansal Wire has three main segments: high carbon steel wire, mild steel wire (low carbon steel), and stainless steel wire.
Written by:- Abhishek Singh
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