Shares of Bansal Wire Industries gained as much as 5 percent to Rs 406.5 in morning trade on June 11 after DAM Capital initiated coverage on the stock with a ‘Buy’ rating and a target price of Rs 481, implying a strong upside of 24.2 percent from current levels.

The brokerage expects the company to clock a 28 percent volume CAGR over FY25–27, supported by the commissioning of its 420 kt steel wire plant in Dadri by the first half of FY26. It also projects robust growth in financials, with revenue, EBITDA, and PAT expected to grow at 31 percent, 35 percent, and 38 percent CAGRs, respectively.

DAM Capital also highlighted improving leverage ratios despite ongoing capex for backward integration and steel cord production. It expects return ratios to remain healthy, with high-teen ROCE and ROE on a steady-state basis. A leaner working capital cycle is likely, once the company winds down its group entities.

Bansal Wire Industries Ltd (BWIL) stands as India’s largest stainless steel wire manufacturer and the second-largest overall in the steel wire segment, commanding approximately 20 percent and 4 percent market share respectively as of FY23. With a vast portfolio of over 3,000 SKUs, the company serves a broad customer base of more than 5,000 clients across diverse industries, the report added.

Customer concentration remains minimal, with no single client accounting for more than 5 percent of FY24 revenue. The company’s end-market exposure is also well diversified, with automobiles—its largest segment—contributing just 22 percent. Looking ahead, BWIL is expanding into high-margin steel cords and other specialty products at its upcoming facility. This strategic move is expected to drive a 6 percent CAGR in unit profitability between FY25 and FY27.

Shares of Bansal Wire Industries made an impressive debut on the NSE after listing at Rs 356, a premium of 39 percent over the issue price of Rs 256 on July 10 last year, following a successful Initial Public Offering (IPO). This book-built IPO consisted entirely of a fresh issue of 2.91 crore shares.

Bansal Wire's Rs 745-crore public offer received bids for over 67 crore equity shares, surpassing the offer size of 2.14 crore equity shares by 31.25 times. Qualified institutional buyers (QIBs) led the charge, buying over 55 times their allotted portion. Non-institutional investors followed, bidding 44.60 times their allotted quota, while retail investors subscribed to 11.76 times their reserved portion.

At about 10:10 am, shares of the company were trading at Rs 395, higher by 2 percent from the last close on the NSE. Bansal Wires share price has fallen 13 percent from the last close on the NSE.