BMW Industries Ltd.

Basic Materials — Steel · BSE

₹53.30−₹0.55 (−1.02%)

DalalBaazaar Score

63 / 100

🟢 Good

Verdict

REASONABLE

Risk

High

Driven by negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: Reasonable but unspectacular business quality, with both sales and profits growing well. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:07 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

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

What does this company do?

BMW Industries Ltd. manufactures, processes, and sells steel products in India. The company offers steel long products, including bars, rods, and wires comprising rebars, wire rods, steel beams, and pipes used in concrete reinforcement, rail tracks, and structural frameworks.

IndustrySteel

SectorBasic Materials

Employees686

Annual revenue₹610 Cr

How does it make money?

Turns over ₹610 Cr a year. Of every ₹100 of sales, about ₹13 reaches shareholders as profit, with ₹29 left at the operating level before interest, tax and depreciation. Each of its 686 employees supports ₹89.0 lakh of revenue a year, the signature of a people-led business.

EBITDA margin28.7%

Net margin13.3%

Revenue / employee₹89.0 lakh

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.

TATA STEEL LIMITEDP/E 19.8x · ROE 10.8%

JSW STEEL LIMITEDP/E 12.0x · ROE 24.7%

JINDAL STEEL LIMITEDP/E 39.1x · ROE 5.3%

STEEL AUTHORITY OF INDIAP/E 16.5x · ROE 7.1%

What is its competitive advantage?Little sign of one

Returns on capital of 11.6% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

ROCE11.6%

ROE10.1%

Peer median ROE10.8%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +20% while net margin moved +24% 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+20%

Margin effect+24%

DalalBaazaar Score

63/ 100

Good

Weighted across six categories. Every point is explained below.

• Beta of 0.83 — moves roughly with the market
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✓ Profits have been consistent from year to year
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

62/ 100

Average

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

Valuation

77/ 100

Cheap

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

14.1x

3Y Median

17.4x

40 monthly readings · mean 18.3x · range 8.0x–30.0x

Sector Median

18.2x

median of 4 sector peers

🟢Current valuation is approximately 19% below its 3y median of 17.4x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 22% below the peer median of 18.2x.

vs. its own history

Fair

17.4x median over 40 months · -19%

vs. sector peers

Cheap

18.2x median of 4 peers · -22%

vs. generic bands

Cheap

Below 15x

P/E (Trailing)

14.1x

P/B

1.50x

EV/EBITDA

8.9x

PEG

1.00

Dividend Yield

0.81%

What's Good / What's Bad

🟢 What's Going Well2

Margins are improving
EBITDA margin is up from 27.0% to 28.7% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Debt is rising
Total debt is up 55% over 3 years — worth checking what it funded.
Free cash flow is negative
The business is not currently covering its capital spending from operations.

Red Flags

3 items require attention · 2 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 55% over 3 years, from ₹238 Cr to ₹368 Cr.
🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹202 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 27.0% to 28.7%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Cheaper than its peers
It trades 22% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
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?

Growth barely outpaces inflation
Revenue compounding at 6.3% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
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

1EBITDA margin holds above 27%✓ 28.7%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA stays below 2x✗ 2.1x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
3Free cash flow remains positive✗ -₹202 Cr
Profit that never becomes cash eventually stops being profit.
4Revenue growth stays above 5% a year✓ 6.3% CAGR
Latest reported year was 11.6%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
5ROCE stays above 9%✓ 11.6%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

8 / 11 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
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

6 good · 4 neutral · 1 weak

Market Cap

₹1,200 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

14.1x

Cheap

Cheap against the generic band

P/B Ratio

1.50x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹3.77

Profitable

Profitable on a per-share basis

ROE

10.1%

Moderate

Moderate capital efficiency

ROCE

11.6%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.46x

Low

Conservative leverage

Revenue Growth (YoY)

11.6%

Healthy

Healthy top-line growth

Profit Growth (YoY)

26.9%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.81%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹202 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹53.3

Operating Margin

11.9%

Average

Average margins

Net Margin

12.5%

Good

Strong bottom-line conversion

Current Ratio

1.60

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.83

Market-like

Moves roughly in line with the market

52W Range Position

70%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

53.3 / 51.9

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

54.2

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹509 Cr	₹534 Cr	₹590 Cr	₹610 Cr	+6.3%
EBITDA	₹138 Cr	₹161 Cr	₹156 Cr	₹175 Cr	+8.4%
EBITDA Margin	27.0%	30.1%	26.5%	28.7%	—
PAT (Net Profit)	₹54 Cr	₹64 Cr	₹75 Cr	₹81 Cr	+14.2%
EPS	₹2.42	₹2.83	₹3.33	₹3.6	+14.2%
ROE	9.0%	9.6%	10.3%	10.1%	—
ROCE	13.2%	13.6%	12.8%	11.6%	—
Total Debt	₹238 Cr	₹106 Cr	₹183 Cr	₹368 Cr	+15.7%
Free Cash Flow	₹62 Cr	₹144 Cr	₹4 Cr	-₹202 Cr	—

🟢 Revenue has grown at 6.3% a year over 3 years.

🟢 EBITDA has grown at 8.4% a year over 3 years.

🟢 EBITDA Margin has risen from 27.0% to 28.7% over 3 years (+1.7 pts).

🟢 PAT (Net Profit) has grown at 14.2% a year over 3 years.

🟢 EPS has grown at 14.2% a year over 3 years.

🟢 ROE has risen from 9.0% to 10.1% over 3 years (+1.1 pts).

🔴 ROCE has fallen from 13.2% to 11.6% over 3 years (-1.6 pts).

🔴 Total Debt has grown at 15.7% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹62 Cr to -₹202 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1,291 Cr

Total Liabilities

₹487 Cr

Total Debt

₹368 Cr

Cash & Equivalents

₹5 Cr

Operating Cash Flow

₹83 Cr

Capex

-₹285 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

81.7%

Corporate Actions

Dividend Rate

₹0.43

Ex-Dividend Date

04 Sept 2026

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 positive1 mixed3 general

BMW Industries (BSE:542669) - Stock Analysis

Simply Wall Street, 14 Oct

BMW Industries Q4FY26 Earnings Call: Record Profits, Bokaro Progress & Growth Guidance

scanx.trade, 11 OctResults

🟢Potentially positiveA record operating figure, if it holds, feeds directly into the growth and profitability inputs on this page.

BMW Industries Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 31 Aug

Compare with

Equitymaster, 07 Oct

BMW Industries Shares Hit Upper Circuit Following Rs 1,764-Crore Order Win

NDTV Profit, 10 MayOrder win

🟢Potentially positiveOrder wins add to future revenue, though the effect depends on the contract's size against annual sales and on when it is executed.

BMW Industries rallies after Q4 PAT jumps 88% YoY to Rs 33 crore

Business Standard, 07 MayResults

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

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

🟢Business QualityStrong13.3/20

🟢Financial HealthStrong13/20

🟡GrowthModest10.4/20

🟢ProfitabilityStrong9.9/15

🟢ValuationAttractive11.8/15

🟡RiskModerate4.8/10

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 2 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓EBITDA margin holds above 27%28.7%
✗Debt / EBITDA stays below 2x2.1x
✗Free cash flow remains positive-₹202 Cr
✓Revenue growth stays above 5% a year6.3% CAGR
✓ROCE stays above 9%11.6%