A leader in metal coating and fabrication is significantly boosting its production capabilities. The company’s planned Rs. 170 crore investment will nearly triple galvanisation capacity at its Ranjangaon plant to 1,10,000 MT annually. Driven by strong market demand, the expansion aims to fulfil internal needs and increase sales.
Bajel Projects Limited’s stock, with a market capitalisation of Rs. 2,903.94 crores, rose to Rs. 251.20, hitting the intraday upper circuit, up 5 percent from its previous closing price of Rs. 239.24. However, the stock over the past year has given a negative return of 17.2 percent.
Capacity Plans
The company has announced plans to expand the production capacity at its Ranjangaon facility. This expansion will increase its galvanisation capacity from the current 40,500 metric tons per year to 1,10,000 metric tons per year. Currently, the plant is running at a high utilisation rate of 98%, and the additional capacity will be added in phases from the fourth quarter of FY26 to the fourth quarter of FY27. The total investment planned for this expansion is Rs. 170 crore, which will be funded through the company’s internal accruals and/or debt.
The primary reason for this capacity expansion is to meet the growing demand for its products in both domestic and international markets, as well as to support its own internal needs. This move is expected to strengthen the company’s market presence and support future growth opportunities by ensuring it has enough production capacity to meet increasing customer demand.
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About the Facility
Bajel’s Manufacturing Facility in Ranjangaon, near Pune, India, is a modern plant that produces transmission line towers, monopoles, high masts, lighting poles, and other structures. It also offers galvanising services for both in-house and external clients. In FY25, the plant achieved key milestones:
- Produced 1,32,882 poles
- Total production volume of 44,741 metric tons
- Exported 6,904 poles to markets like Ghana, Togo, and the UAE.
The facility continues to improve efficiency through capacity expansion, debottlenecking, and adopting advanced technologies like the TLT CNC Machine for automated cutting, punching, and stamping.
Q4 Financial Highlight
The company reported strong revenue growth in Q4FY25, rising 64 percent YoY to Rs. 801.42 crore from Rs. 489.16 crore in Q4FY24. Sequentially, revenue grew 29 percent from Rs. 622.39 crore in Q3FY25, reflecting improving demand and execution. However, net profit declined 32 percent YoY to Rs. 4.82 crore from Rs. 7.07 crore, though it jumped 230 percent QoQ from Rs. 1.46 crore, indicating a recovery in margins on a sequential basis.
The stock is currently trading at a P/E of 188, significantly above the industry average of 59.4, suggesting premium valuations. The company maintains a healthy balance sheet with a low debt-to-equity ratio of 0.24, providing financial stability for future growth initiatives.
Written By Fazal Ul Vahab C H
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