Penny Stock Below Rs 60 Jumps After Bagging 364,69,00,000 Crore Order from Tata Steel Ltd
The stock is up over 50 per cent from its 52-week low of Rs 39.36 per share.
On Wednesday, shares of BMW Industries Ltd jumped 11.7 per cent to an intraday high of Rs 59.75 per share from its previous closing of Rs 53.50 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 2 times on the BSE.
BMW Industries Limited, a leading Indian steel processing company, and its wholly-owned subsidiary, BMW Iron & Steel Industries Limited, have secured significant orders from Tata Steel Limited totalling Rs 364.69 crore. These contracts involve the conversion of hot rolled (HR) coils into tubes and are valid until October 31, 2027. The work will be executed at BMW's Hazibagan plant in Howrah and BMW Iron & Steel's facility in Jamshedpur, utilising existing infrastructure to ensure operational efficiency. This substantial order, valued at Rs 188.60 crore for BMW Industries and Rs 176.09 crore for its subsidiary, represents a continuation of the company's core business activities and is expected to contribute consistently to its revenue over the contract's duration.
Beyond these new orders, BMW Industries is also advancing its strategic expansion with the development of an Rs 803.47 crore Greenfield Downstream Steel Complex in Bokaro. This new facility is designed to manufacture high-grade speciality steel products, including coated and Al-Zn coated (Galvalume) materials, targeting both domestic and international markets. The Bokaro project underscores the company's commitment to increasing its capacity and market presence in the value-added steel segment, complementing its ongoing operational activities and its focus on delivering reliable and efficient steel processing services.
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About the Company
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 over 50 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.