The shares of Polycarbonate sheet manufacturers hit a 2 percent upper circuit after the company bagged significant work orders from RBM Infracon Limited for Rs 14.25 crore.
With a market capitalization of Rs 124.21 crore, the shares of Bansal Roofing Products Ltd were trading at Rs 94.22 per share, increasing around 2 percent as compared to the previous closing price of Rs 92.38 apiece.
Reason for rise
The shares of the company have seen positive movement after Bansal Roofing Products Ltd signed a contract with RBM Infracon Limited for the Design, Supply, and Erection of a Pre-Engineered Steel Building at an overall cost of Rs. 14.25 crore including P&F, Transportation, and Transit Insurance plus GST extra as per Govt. norms.
Financial performance
Examine the company’s financial condition, revenue dipped by 37 percent from Rs 26.92 crore in Q2FY24 to Rs 16.68 crore in Q2FY25, and during the same time frame, net profit plummpted by 36 percent from Rs 0.83 crore to Rs 0.53 crore.
Expansion plan
The company’s Unit II has a production capacity of 800 tonnes per month, expandable to 2000 tonnes. Focused on Pre-Engineering Buildings (PEB) like factory sheds and warehouses, it has completed 250+ projects globally. The order book is secured for 2.5-3 months, aiming to increase the operating profit margin from 5.08%.
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Future Plan
The company plans to expand Unit II, targeting a turnover of Rs. 200-250 Cr. with no major expenses anticipated. Future capital expenditure may be funded through accruals. Revenue growth is directly linked to fluctuations in steel prices, supporting increased profitability.
Ratio analysis
The company’s critical ratios show that the return on equity decreased from 17.33 percent in FY22-23 to 12.84 percent in FY23-24, while the return on capital employed decreased from 20.76 percent to 17.25 percent. The net profit margin (NPM) for fiscal year 23-24 is 3.35 percent.
Company Profile
Bansal Roofing Products Ltd is a renowned firm engaged in the manufacturing of Roofing Products & Accessories. Its products are widely demanded for industrial roofing purposes in airport hangars, warehouses, Farmhouses, Industrial Sheds, etc.
Written by Abhishek Singh
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