1. At a Glance
BMW Industries Ltd is one of India’s largest steel processors, quietly doing heavy lifting for steel giants. With expanding capacity, 13% ROCE, and a 27% profit CAGR over 5 years, this ₹1,195 Cr midcap is doing more than just rolling coils—it’s quietly coiling cash.
2. Introduction with Hook
In a world full of APL Apollos and JSPLs flexing, BMW Industries is like the guy in the gym who never grunts but quietly benches 100 kg.
- FY25 PAT: ₹75 Cr
- OPM: 23% (yes, 23%!)
- Debt? Reduced. Capacity? Expanded.
- Solar power? Yes. Dividend? Also yes.
Small cap, big capex, steel core, solar twist. Let’s roll.
3. Business Model (WTF Do They Even Do?)
BMWIL is not into cars (sorry, BMW fanboys). It operates across:
- Steel processing: HRPO, CR coils, TMT rebars, GI pipes, tubes
- Cold rolling and galvanizing: One of India’s largest standalone facilities
- Clients: Marquee steel companies (read: Tata, JSW etc.)
- Subsidiaries: BMW Iron & Steel (commissioned new tube mill & 1.28 MW solar plant in Jamshedpur, May 2025)
Think of them as the contract manufacturer for India’s steel backbone.
4. Financials Overview
| FY | Revenue (₹ Cr) | EBITDA (₹ Cr) | PAT (₹ Cr) | OPM % | ROE % |
|---|---|---|---|---|---|
| FY23 | 562 | 130 | 54 | 23% | 9.3% |
| FY24 | 598 | 146 | 64 | 24% | 10.2% |
| FY25 | 629 | 147 | 75 | 23% | 10.8% |
Verdict: Revenue is crawling, but profits are sprinting—margin magic at work.
5. Valuation
- CMP: ₹53.1
- P/E: 16.0
- P/B: 1.63
- Book Value: ₹32.5
- Market Cap: ₹1,195 Cr
Fair Value Range (15–20x FY26E EPS of ₹4.25–₹5.00):
➡ ₹64 – ₹100
Still below radar. Still underpriced.
6. What’s Cooking – News, Triggers, Drama
- ₹50 Cr Tube Mill & Solar Project launched in May 2025
- Capacity addition: 60,000 MT annual tubes
- Director Appointment: Vijay Kumar Agarwal, June 2025
- Dividend Culture: FY25 payout at 13%
- Margins Stable: OPM > 23% for 3 straight years
No circus. Just execution.
7. Balance Sheet
| Metric | FY25 (₹ Cr) |
|---|---|
| Equity Capital | 23 |
| Reserves | 709 |
| Borrowings | 162 |
| Fixed Assets | 629 |
| CWIP | 55 |
| Total Assets | 1,016 |
Highlights
- D/E = ~0.22
- Fixed asset expansion funded without equity dilution
- Solar asset quietly slipped in through capex
8. Cash Flow – Sab Number Game Hai
| Year | CFO | CFI | CFF | Net Cash |
|---|---|---|---|---|
| FY23 | 126 | -57 | -62 | +7 |
| FY24 | 268 | -112 | -157 | -1 |
| FY25 | 125 | -150 | +21 | -4 |
Insight:
- Operating cash strong and consistent
- FY25 investment spike = capex on expansion
- Financing largely internal—no dilution, no drama
9. Ratios – Sexy or Stressy?
| Ratio | FY25 |
|---|---|
| ROCE | 13.6% |
| ROE | 10.8% |
| OPM | 23% |
| D/E | 0.22 |
| Inventory Days | 94 |
| CCC (Days) | 110 |
Verdict:
Very healthy for a steel processor. Low leverage, high margin, improving turns.
10. P&L Breakdown – Show Me the Money
| Metric | FY25 |
|---|---|
| Revenue | ₹629 Cr |
| EBITDA | ₹147 Cr |
| Interest | ₹13 Cr |
| Depreciation | ₹44 Cr |
| PBT | ₹100 Cr |
| Tax | ₹25 Cr |
| PAT | ₹75 Cr |
| EPS | ₹3.33 |
High margin, low tax surprises, and steady EPS growth. The accountant’s dream.
11. Peer Comparison
| Company | CMP ₹ | P/E | ROCE | OPM | M-Cap ₹ Cr |
|---|---|---|---|---|---|
| APL Apollo Tubes | 1,695 | 62 | 22.8% | 5.8% | 47,035 |
| Godawari Power | 191 | 15.8 | 23.3% | 22% | 12,809 |
| Jindal Saw | 229 | 9.9 | 19.3% | 16.6% | 14,645 |
| BMW Industries | 53 | 16 | 13.6% | 23.4% | 1,195 |
BMW’s OPM is better than the rest—yet valuation is way behind. Underdog alert?
12. Miscellaneous – Shareholding, Promoters
- Promoter Holding: 74.36% (solid, stable)
- FIIs: 0%
- DIIs: 0%
- Public: 25.64%
- No. of Shareholders: 52,488
From 7K shareholders in 2022 to 52K now. Retail is waking up.
13. EduInvesting Verdict™
BMW Industries Ltd is the midcap steel stock no one’s talking about—but maybe should. Low debt, fat margins, forward-looking capex (solar + tubes), and consistent cash flow—what’s not to like?
- Pros: Healthy ratios, smart expansion, solar pivot, margins >23%
- Cons: Sales growth slow, no analyst coverage, zero institutional love (yet)
This might not be your next 10-bagger overnight, but it could quietly double while no one’s watching.
Steel the show before someone else does.
Metadata
– Written by EduInvesting Analyst | 18 July 2025
– Tags: BMW Industries, Steel Stocks, Tube Mill, Solar Capex, High Margin Smallcap, Hidden Gems, Industrial Midcaps
