Penny Stock Below Rs 60 Hit a 20 Per Cent Upper Circuit After Bagging 1,764 Crore Order From Tata Steel Ltd; 1.42 Times Its Market Cap

The shares of the company saw a spurt in volume by more than 10 times on the BSE.

On Monday, shares of BMW Industries Ltd hit a 20 per cent upper circuit to Rs 55.28 per share from its previous closing of Rs 46.07 per share. The stock’s 52-week high is Rs 79.05 per share and its 52-week low is Rs 39.36 per share. The shares of the company saw a spurt in volume by more than 10 times on the BSE.

The stock hit the upper circuit after the company had received a work order from Tata Steel Limited for processing and conversion of coils at our Jamshedpur works for a period up to March 31, 2029 for an amounting Rs 1,764 crores (Rupees One Thousand Seven Hundred Sixty-Four Crores approx.) which is 1.42 times its current market cap.

BMW Industries Ltd, established in 1981, stands as a prominent steel processing company in India, boasting multiple manufacturing units across the nation. The company's core activities encompass the manufacturing, processing, and sale of a diverse range of steel products, including HRPO coils, CR coils, GP coils, GC sheets, MS and GI pipes, and TMT rebars, catering to major steel players in the Indian market. Notably, BMW Industries operates one of the largest independent cold rolling and galvanising facilities in the country, underscoring its significant capacity in processing both long and flat steel products.

The company has a market cap of over Rs 1,200 crore and debtor days have improved from 70.5 to 37.6 days with its working capital requirements having reduced from 164 days to 83.7 days. The stock is up by 40 per cent from its 52-week low of Rs 39.36 per share.

Disclaimer: The article is for informational purposes only and not investment advice.