Bansal Wire Industries Limited

Basic Materials — Steel · NSE

₹61.45−₹1.65 (−2.61%)

DalalBaazaar Score

62 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

Driven by micro-cap size, which brings thin liquidity, falling profits.

In simple words: Strong business and financial position, though profits are falling even as sales grow. The direction of profits is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:46 pm

Understanding the Business

Company site ↗

The 60-second version of Bansal Wire Industries Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Bansal Wire Industries Limited manufactures and sells steel wires worldwide.

IndustrySteel

SectorBasic Materials

Employees3,099

Annual revenue₹4,121 Cr

How does it make money?

Turns over ₹4,121 Cr a year. Of every ₹100 of sales, about ₹4 reaches shareholders as profit, with ₹8 left at the operating level before interest, tax and depreciation. Each of its 3,099 employees supports ₹1.33 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.33 Cr

Who are its competitors?

The closest listed comparisons in its industry are TATA STEEL LIMITED, JSW STEEL LIMITED, JINDAL STEEL LIMITED, STEEL AUTHORITY OF INDIA. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Some evidence

ROCE of 16.0% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

Peer median ROE10.8%

What is the outlook?

2 analysts covering the stock expect revenue to grow about 18.8% and earnings to grow about 33.2% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+18.8%

Est. earnings growth+33.2%

Analysts2

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +72% while net margin moved +56% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+72%

Margin effect+56%

DalalBaazaar Score

62/ 100

Good

Weighted across six categories. Every point is explained below.

• ROE of 11.2% is moderate
✗ ROE has fallen by 10.0 points over the period

Quality vs. Valuation

Company Quality

66/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

52/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

33.8x

2Y Median

35.0x

29 monthly readings · mean 54.0x · range 6.0x–96.8x

Sector Median

18.2x

median of 4 sector peers

🟡Currently trading close to its 2y median of 35.0x — the market is paying about what it usually pays for this company.

⚠️Against its sector it trades 86% above the peer median of 18.2x.

vs. its own history

Fair

35.0x median over 29 months · -3%

vs. sector peers

Expensive

18.2x median of 4 peers · +86%

vs. generic bands

Fair

15x–35x

EV/EBITDA

16.7x

PEG

0.87

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from 4.7% to 7.8% over 3 years.
Cash generation is improving
Free cash flow is up 79% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 21.2% to 11.2% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 21.2% to 16.0% — often a sign of competition or overexpansion.

Red Flags

4 items require attention · 2 high · 2 watch

🔴Receivables growing faster than salesFinancial
Receivables up 135% against revenue up 72% — sales are being booked faster than they are collected.
🔴Inventory building faster than salesFinancial
Inventory up 190% against revenue up 72% — stock may not be moving.
🟡Debt is increasingFinancial
Total debt is up 34% over 3 years.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 7.9x to 4.9x.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 4.7% to 7.8%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹101 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Sales are being booked faster than collected
Receivables are up 135% against revenue up 72%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
A premium to the sector to defend
It trades 86% above the peer median. That premium needs a reason that persists, or it closes.
Returns on shareholder capital are falling
ROE has dropped from 21.2% to 11.2%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.
Several serious flags at once
2 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 15% a year✓ 19.8% CAGR
Latest reported year was 24.4%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 6%✓ 7.8%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹101 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.7x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 13%✓ 16.0%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

8 / 12 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✗ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

5 good · 5 neutral · 1 weak

Market Cap

₹4,810 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

33.8x

Fair

Fairly valued against the generic band

P/B Ratio

3.36x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹1.82

Profitable

Profitable on a per-share basis

ROE

11.2%

Moderate

Moderate capital efficiency

ROCE

16.0%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.39x

Low

Conservative leverage

Revenue Growth (YoY)

24.4%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-47.8%

Falling

Profits are shrinking

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

₹101 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

18.7x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

3.5%

Weak

Thin margins leave little room for error

Net Margin

3.2%

Average

Average bottom-line conversion

Current Ratio

1.64

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.83

Market-like

Moves roughly in line with the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

204.4 / 272.8

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

4.1

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹2,394 Cr	₹2,449 Cr	₹3,478 Cr	₹4,121 Cr	+19.8%
EBITDA	₹113 Cr	₹147 Cr	₹270 Cr	₹321 Cr	+41.8%
EBITDA Margin	4.7%	6.0%	7.8%	7.8%	—
PAT (Net Profit)	₹60 Cr	₹74 Cr	₹145 Cr	₹161 Cr	+39.0%
EPS	₹3.83	₹4.7	₹9.73	₹10.28	+39.0%
ROE	21.2%	17.4%	11.4%	11.2%	—
ROCE	21.2%	17.4%	16.4%	16.0%	—
Total Debt	₹415 Cr	₹681 Cr	₹608 Cr	₹555 Cr	+10.1%
Free Cash Flow	₹56 Cr	-₹1,011 Cr	-₹616 Cr	₹101 Cr	+21.5%

🟢 Revenue has grown at 19.8% a year over 3 years.

🟢 EBITDA has grown at 41.8% a year over 3 years.

🟢 EBITDA Margin has risen from 4.7% to 7.8% over 3 years (+3.1 pts).

🟢 PAT (Net Profit) has grown at 39.0% a year over 3 years.

🟢 EPS has grown at 39.0% a year over 3 years.

🔴 ROE has fallen from 21.2% to 11.2% over 3 years (-10.0 pts).

🔴 ROCE has fallen from 21.2% to 16.0% over 3 years (-5.2 pts).

🔴 Total Debt has grown at 10.1% a year over 3 years.

🟢 Free Cash Flow has grown at 21.5% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹2,517 Cr

Total Liabilities

₹1,086 Cr

Cash & Equivalents

₹2 Cr

Operating Cash Flow

₹333 Cr

Capex

-₹233 Cr

Shareholding (proxy)

Institutional Holding

15.4%

Insider Holding

78.4%

Analyst Consensus

Recommendations

2 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹75

+22.1% vs CMP

Target Range

₹74 – ₹76

Peer Comparison

Company	P/E	ROE
TATA STEEL LIMITED	19.8x	10.8%
JSW STEEL LIMITED	12.0x	24.7%
JINDAL STEEL LIMITED	39.1x	5.3%
STEEL AUTHORITY OF INDIA	16.5x	7.1%

Recent News

2 positive2 mixed2 general

Bansal Wire Industries Approves Stock Split In Ratio Of 1:5

Sahi, 12 AugCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Dividend, stock split record date: Last chance to buy today - Hindustan Composites, Canara Robeco, HCL and Bansal Wire

Livemint, 14 OctCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Bansal Wire Industries Q4 & FY26 Earnings Call: Growth, Headwinds & Strategy

scanx.trade, 11 OctResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Bansal Wire Industries: Best Stock in Its Sector? Key Metrics

Univest, 24 Sept

Bansal Wire Industries Limited Beat Revenue Forecasts By 12%: Here's What Analysts Are Forecasting Next

Simply Wall Street, 25 JulAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Dividends, Stock Splits And Rights Issues: Stocks To Watch This Week

ETV Bharat, 12 Oct

Watch Items

Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

StrongFinancial Health · Growth

MiddlingValuation

WeakBusiness Quality · Profitability · Risk

Points for each in the Score ↑

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself. 2 high-severity red flags sit above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑