The price target ascribed by DAM Capital, implies a potential upside of nearly 25% from Tuesday’s closing levels.
The brokerage wrote in its note that Bansal Wire Industries is the second largest steel wire and the largest stainless steel wire manufacturer in India.
Its dominant positioning is evident from the fact that over the years, it has managed to largely maintain margins irrespective of wide raw material cost fluctuations.
The company has been gaining market share in a highly fragmented market over the last decade and has now embarked on a major expansion — 62% increase in capacity. From a capacity of 259kt in FY24, Bansal Wire will reach market leading 679kt by FY26.
This expansion, at Dadri, UP, will also see Bansal Wire foraying into higher margin specialty wire segment along with bringing economies of scale (India’s largest single location wire plant).
With a great execution track record and focus on growing faster than market, Bansal Wire is well placed for its next leg of growth coupled with improving margins, the brokerage said.
DAM Capital expects revenue, EBITDA, and profit CAGR of 31%, 35%, and 38%, respectively, during FY25-27, driven by higher volumes and improved volume mix.
Shares of Bansal Wire Industries Ltd. are trading 3.46% higher at ₹399.15. Despite today’s gain, the stock has fallen 14% so far in 2025.
