Bharat Wire Ropes Ltd: Q3 FY24 Net Profit Drops 43.57% – Stock Analysis & Growth Outlook
Business and Industry Overview:
Bharat Wire Ropes Limited (BWRL) makes steel wires, wire ropes, strands, and slings. The company started in 1986 in Mumbai, Maharashtra. Today, it serves customers in over 52 countries. It has two big factories. One is in Atgaon, with a capacity of 6,000 MTA. The other is in Chalisgaon, with a larger capacity of 66,000 MTA. The company makes products for many industries. These include fishing, mining, shipping, elevators, cranes, oil exploration, and material handling. BWRL also supplies its products to big government organizations. These include Indian Railways, ONGC, BHEL, Shipping Corporation of India, Coal India Limited, port trusts, and electricity boards. The company is listed on BSE and NSE. BWRL makes strong and reliable products. It uses modern machines and new technology. The company has strict quality control and holds many approvals. Some of these include BIS licenses (eight types), RDSO approvals (four types), ISO 9001:2008, DGMS approval, and MMD approval. The company believes in fair business. It cares about reducing pollution and helping society. BWRL has over 1,000 employees and serves more than 600 customers. It is growing every year and working to provide better products worldwide.
The steel wire and wire rope industry makes products used to lift, pull, and secure heavy loads. These products are important in many industries like construction, mining, shipping, oil drilling, elevators, and cranes. Strong wire ropes help keep workers and equipment safe. The demand for these products is increasing because more buildings, factories, and ships are being made worldwide. Companies in this industry use modern machines to make strong and long-lasting ropes. They follow strict quality rules to ensure safety and reliability. Many companies also work to reduce pollution and waste to protect the environment. Bharat Wire Ropes Limited is an important company in this industry. It supplies high-quality wire ropes in India and other countries.
Bharat Wire Ropes Limited (BWRL) is a big company in the steel wire and wire rope industry. It makes steel wires, wire ropes, strands, and slings. The company started in 1986 in Mumbai, Maharashtra. It has two large factories. One factory is in Atgaon with a 6,000 MTA capacity. The other is in Chalisgaon with a 66,000 MTA capacity. BWRL sells its products in India and 52+ countries. It supplies Indian Railways, ONGC, BHEL, Coal India, ports, and electricity boards. It also sells to private companies. The company is listed on BSE and NSE. It uses modern machines and strict quality checks. It has many approvals like BIS (eight types), RDSO (four types), ISO 9001:2008, DGMS, and MMD. BWRL has over 1,000 employees and 600+ customers. It is growing every year. The company cares about quality and safety. It follows eco-friendly methods to reduce pollution. BWRL is a trusted company for strong and reliable products.
Latest Stock News:
Bharat Wire Ropes Limited’s stock has fallen 7%, currently trading at Rs 174. Over the last year, its share price has dropped 58.8%, from Rs 322.6 to Rs 132.9. Meanwhile, the BSE METAL index has increased by 4% in the same period.
Despite the recent drop, Bharat Wire Ropes reported a 54.6% rise in annual net profit for FY24, reaching Rs 962 million, with revenue growing 5.6% to Rs 6,218 million. However, in the latest quarter (Q3 FY24), net profit declined 43.6% YoY to Rs 149 million, despite a 2.9% increase in net sales. The company’s Price-to-Earnings (P/E) ratio stands at 12.4 based on the last 12 months’ earnings.
Potentials:
Bharat Wire Ropes Limited has a strong chance to grow. It makes wire ropes used in fishing, mining, shipping, oil and gas, elevators, cranes, and construction. Big companies and government groups like Indian Railways, ONGC, BHEL, and Coal India buy from them. The company sells its products in over 30 countries, including the USA, Australia, Singapore, South Africa, Vietnam, and Nepal. It has two large factories. One is in Atgaon, and one is in Chalisgaon, with a high production capacity of 66,000 MTPA. It also has a plant that produces fuel to lower costs. In 2022-23, it bought a 26.72% share in MITCON Solar Alliance Limited. This investment may help the company grow in the solar energy sector. With its strong factories, trusted customers, and growing global sales, Bharat Wire Ropes can become even bigger in the future.
Analyst Insights:
- Market capitalisation: ₹ 1,193 Cr.
- Current Price: ₹ 174
- 52-Week High/Low: ₹ 331 / 122
- P/E Ratio: 16.3
- Dividend Yield: 0.00 %
- Return on Capital Employed (ROCE): 18.7 %
- Return on Equity (ROE): 42.3 %
Bharat Wire Ropes has grown well in the last five years. Profit increased by 33% every year. The company reduced its debt from ₹610 Cr in 2019 to ₹515 Cr in 2024. It has a good return on equity (ROE) of 42.3% and return on capital (ROCE) of 18.7%. The stock price is at a P/E ratio of 16.3, which is lower than many other companies. But there are risks. Promoters have pledged 48.9% of their shares. The company makes a profit but does not give dividends. The latest profit dropped by 43.57%. The company is taking longer to collect money from customers, as debtor days increased from 37.2 to 46.5. The company has good long-term potential, but there are risks in the short term. Long-term investors can buy at lower prices. Short-term investors should wait.