Bansal Wire Industries Gets Anand Rathi's 'Buy' Initiation On Capacity Expansions, High-Margin, VAPs

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Anand Rathi Report

Bansal Wire Industries Ltd. is the fastest growing in steel wires, and we expect a 24% sales volume CAGR, >25% revenue CAGR, >26% Ebitda CAGR and >29% APAT CAGR over FY25-27.

As we expect it to continue growing at a similar pace over the next decade driven by its next phase of expansion (including value added product), better utilisation and raw material integration, we assign a 1.2x PEG to derive the target price.

With a long track record of profitability, the company has consistently raised market share; once the Dadri plant is fully commissioned (by H1 FY26), this is expected to cross 7%. In line with the consistent capacity increase and sales volumes along with 8-9% CAGR in domestic steel wire demand, the company has potential to raise its market share further to ~12-15% over next decade.

We initiate coverage on the stock with a Buy and a target price of Rs 550. The stock now trades at 24x FY27e P/E.

Key risks: Raw material price fluctuations, delay in ramping up the Dadri/Sanand plants and non-receipt of approval from customers.

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