Small-cap stock with just ₹1,240 crore market cap bags ₹1,760 crore order from Tata Steel. Details here
Multibagger small-cap stock: Shares of BMW Industries, a leading manufacturer in the downstream steel sector, jumped 20% in Monday's trading session, to hit the day's high of ₹ 55.28 apiece. This sharp rise in the stock came after the company announced that it had secured a significant order from Tata Steel.
The company informed investors through an exchange filing during today's mid-session that it had received a work order from Tata Steel Limited for the processing and conversion of coils, worth ₹ 1,746 crore.
'The company has received a work order from Tata Steel Limited for 'Processing and Conversion of Coils' at our Jamshedpur works for a period up to 31.03.2029, amounting to Rs1,764 crore (Rupees One Thousand Seven Hundred Sixty-Four Crore approximately),' the company said in the filing.
This order is larger than the company's market capitalization of ₹ 1,244 crore as of today. In mid-March, the company had announced an ₹ 800 crore capital expenditure for setting up a greenfield downstream steel complex in Bokaro, Jharkhand, which will be funded through a mix of internal accruals and debt.
According to the company, the proposed project involves the development of a downstream steel complex with an annual production capacity of 300,000 TPA of cold rolled full hard coils/sheets, 540,000 TPA of galvanized coils/sheets, and 200,000 TPA of color-coated coils/sheets. The project will be located in Bokaro, Jharkhand.
The company already possesses the required land, which is designated for industrial use and will serve as the site for this greenfield project. Meanwhile, in March, the company signed a Memorandum of Understanding (MoU) with the Ministry of Steel under the Production Linked Incentive (PLI) Scheme 1.1 for specialty steel.
The company's shares have rebounded this month, gaining 18% so far, after remaining sideways for nine consecutive months (between August 2024 and March 2025), during which they lost 35.65% of their value.
Prior to the decline, the stock had rallied between June 2023 and August 2024, delivering a stellar gain of 186%. Despite the recent correction, the stock remains up by 332% over the past five years.
BMW Industries is one of the leading manufacturers in the steel sector, engaged in the production of HRPO coils, CR coils, GP coils, GC sheets, MS and GI pipes, TMT rebars, and also provides processing services for marquee steel players in India.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
First Published: 5 May 2025, 03:19 PM IST
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