Bansal Wire Inds (BANSALWIRE)
CyclicalFairStock Score: 32/100 — RISKY
Score breakdown: P/E: 1/3 · ROCE: 1/2 · Growth: 1/2 · Dividend: 0/1
Key Financials
| Current Price | ₹318.25 |
| Market Cap | ₹4,982.39 Cr |
| P/E Ratio | 35.09 |
| ROCE | 16.44% |
| ROE | 11.32% |
| Dividend Yield | 0% |
| Profit Growth | -47.8% |
| Debt/Equity | 0.39 |
| Sales Growth | 24.4% |
| Promoter Holding | 77.99% |
| 52-Week Range | ₹222.5 — ₹371.65 |
| Sector | Industrial Products |
| Book Value | ₹91.4 |
Strengths
- Promoter holding of 77.99% ensures strong insider alignment with minority shareholders.
- ROCE of 16.44% indicates efficient capital deployment relative to the capital base.
- Debt-to-equity of 0.44 and Piotroski F-Score of 7/9 reflect a manageable balance sheet.
- Sales growth of 11.29% shows steady demand despite a cyclical industry.
- Latest quarter sales of ₹1,029 Cr demonstrate meaningful operating scale.
Concerns
- P/E of 26.49 and PEG of 2.95 appear expensive against profit growth of just 6.67%.
- Zero dividend yield means investors rely entirely on price appreciation.
- Profit growth trailing sales growth suggests margin compression in a competitive steel market.
- FairStock Score of 24/100 flags the stock as risky, reinforced by a wide 52-week range.
AI Analysis
Bansal Wire operates in iron and steel products, and Graham taught me to be wary of cyclical industries. At ₹306, the market cap is ₹4,110 Cr, with a P/E of 26.49. That's a rich price for a company whose profit grew only 6.67% last year. The PEG ratio of 2.95 confirms growth is not cheap. Book value stands at ₹69.70, so I'm paying 4.39 times book for a business earning an ROE of 11.32% – decent, but not the kind of franchise premium I like. ROCE of 16.44% is respectable, and debt-to-equity of 0.44 is manageable. Promoter holding of 77.99% is a positive; owners have skin in the game. The Piotroski F-score of 7 out of 9 suggests the balance sheet is in decent shape. Latest quarter sales were ₹1,029 Cr and net profit ₹43 Cr – that's a thin margin, typical of steel. Sales grew 11.29%, but profit lagged at 6.67%, signaling margin pressure. There is no dividend, so my entire return depends on price appreciation, which is dangerous in a cyclical. The 52-week range of ₹222.50 to ₹380.20 shows volatility. FairStock scores it 24/100, risky. In Buffett's language, this is a reasonable business with okay financials, but at 26 times earnings, I'm not getting a margin of safety. I'd patiently wait for a lower price.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer