🪙 At a Glance
Bansal Wire is India’s #1 in stainless steel wire and #2 in total wire volume. While its top-line is racing ahead, margins remain modest, and a fresh ₹126 Cr GST notice just spiced up the drama. A ₹6,000 Cr capex bet could change the game—or backfire.
1. 🎬 Introduction with Hook
They say success is built one wire at a time.
Well, Bansal Wire took that literally—and turned into India’s largest stainless steel wire manufacturer, serving 5,000+ clients in 50+ countries.
But while the wires are strong, is the balance sheet stretching too thin?
Let’s untangle this.
2. 🏭 Business Model (WTF Do They Even Do?)
In short: They make steel wires. All kinds. At massive scale.
📦 Product Categories:
- Stainless Steel Wires (India’s largest player)
- Carbon Steel Wires
- Mild Steel & Specialty Wires
- Bead Wires, Electrode Wires, Fine Wires, Binding Wires
🧩 Target Industries:
- Automotive
- Infrastructure
- Consumer durables
- Industrial machinery
🔗 89.5% retention among top 300 clients. So yes, clients like their wires.
3. 💹 Financials Overview – Profit, Margins, ROE, Growth
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue (₹ Cr) | 2,412 | 2,284 | 3,203 |
| Net Profit (₹ Cr) | 60 | 68 | 125 |
| OPM | 4% | 5% | 6% |
| ROE | 16% | 16% | 16.3% |
| EPS | ₹5.4 | ₹5.4 | ₹7.99 |
📈 TTM profit up 89%, thanks to rising volumes and product mix improvement.
But…
- ⚠️ Margins are thin
- 🚧 Capex risk is rising
4. 📊 Valuation – Is It Cheap, Meh, or Crack?
- P/E: 49x – Honestly high for a wire business 🧀
- P/BV: 5.18x – Premium pricing
- Market Cap: ₹6,134 Cr
- Fair Value Estimate: ₹270 – ₹310
Based on 25–30x FY26E EPS of ₹10–₹12, assuming expansion goes as planned.
Current valuation = “Too much optimism baked into a wire roll.”
5. 🧨 What’s Cooking – News, Triggers, Drama
🛠️ Capex Mania:
- ₹6,000 Cr Gujarat plant (world’s largest wire facility) – Operational as of April 2025
- Multiple product launches (Bead wires, Special wires)
🇮🇳 PLI Scheme:
- MoU signed with Ministry of Steel under PLI 1.1 for Specialty Steel
🧾 GST Notice Bomb:
- ₹126 Cr GST notice for FY19
- Co. says: “Mere procedural lapse, hum nahi bhagte tax se”
🏗️ Subsidiary Moves:
- BWI Steel Pvt Ltd incorporated
- Multiple intercorporate loans to subcos approved by board
6. 📉 Balance Sheet – How Much Debt, How Many Dreams?
| FY | Debt (₹ Cr) | Reserves (₹ Cr) | Net Debt/Equity |
|---|---|---|---|
| FY21 | ₹362 | ₹157 | ~2.3x |
| FY24 | ₹603 | ₹290 | ~2.1x |
| FY25 | ₹537 | ₹1,105 | ~0.45x (post IPO boost) |
💰 Good deleveraging post-IPO
💸 But rising CWIP + subsidiary loans = 👀
7. 💵 Cash Flow – Sab Number Game Hai
| Year | CFO (₹ Cr) | Capex (₹ Cr) | FCF |
|---|---|---|---|
| FY24 | ₹74 | ₹229 | -₹155 |
| FY25 | -₹106 | ₹504 | -₹610 |
🧨 Negative free cash flow.
🧰 All guns blazing into future capacity—but it’s a margin game now.
8. 🧮 Ratios – Sexy or Stressy?
| Ratio | FY23 | FY24 | FY25 |
|---|---|---|---|
| ROCE | 16% | 14% | 15.1% |
| ROE | 16% | 16% | 16.3% |
| Inventory Days | 45 | 51 | 68 |
| CCC (Cash Conversion Cycle) | 81 | 85 | 87 |
🧂 Slight working capital creep, but within limits.
🪓 ROCE below wire peers like Ratnamani.
9. 🧾 P&L Breakdown – Show Me the Money
Q4 FY25 Highlights:
- 📦 Sales: ₹897 Cr (↑57% YoY)
- 💰 PAT: ₹30 Cr (↑51% YoY)
- 🔧 OPM: 6%
- 📉 EPS: ₹1.92
Quarterly growth strong—thanks to capacity ramp-up.
But beware: 6% margin means every extra rupee of cost bites hard.
10. 🧑🤝🧑 Peer Comparison – Who Else in the Game?
| Company | OPM | ROCE | P/E | ROE | CMP/BV |
|---|---|---|---|---|---|
| Bansal Wire | 6% | 15.1% | 49x | 16.3% | 5.18x |
| APL Apollo | 5.8% | 22.8% | 63x | 19.4% | 11.3x |
| Ratnamani | 15.9% | 21.6% | 38x | 16% | 5.6x |
| Jindal Saw | 16.6% | 19.4% | 10x | 13.7% | 1.3x |
| Shyam Metalics | 12.3% | 12% | 26x | 9% | 2.27x |
🎯 Bansal is a volume + growth story, not margin leadership.
11. 👥 Shareholding, Promoters, Ownership Drama
| Category | % Holding (Mar 2025) |
|---|---|
| Promoters | 77.99% |
| DIIs | 16.19% |
| FIIs | 2.36% |
| Public | 3.47% |
- 🧱 Strong promoter control (nearly 78%)
- 🧠 DII love increasing post-IPO
- 🔍 Public holding shrinking every quarter
12. ⚖️ EduInvesting Verdict™
“Wired for growth. Priced for perfection. But can it dodge the taxman’s affection?”
Bansal Wire is on a warpath—new products, massive capex, global aspirations. But investors have already priced it like it’s the next Ratnamani.
Problem?
It doesn’t have Ratnamani’s 16%+ margins… yet.
💸 Fair Value Range: ₹270 – ₹310
(using 25–30x FY26E EPS of ₹10–₹12)
Until then, every ₹ matters. Especially the ₹126 Cr GST one.
✍️ Written by Prashant | 📅 11 July 2025
Tags: Bansal Wire Industries, Stainless Steel Wire, Industrial Products, Capex Stocks, PLI Scheme, Ratnamani, Jindal Saw, Wire Industry, GST Notices, Smallcap Stocks
