31 Aug Buy Bharat Wire Ropes; target of Rs 300: ICICI Direct
Buy
ICICI Direct’s research report on Bharat Wire Ropes
BWR, incorporated in 1986, is one of the leading manufacturer of specialty steel wire, steel wire ropes, slings & strands, with wide range of products. Products have applications across industries including elevators, shipping, oil & gas, cranes, mining etc • Company’s ~83% of revenue is from exports while ~17% from domestic markets. In exports, Europe contributes 30-35% of revenue followed by ~20% by US & South America and balance 45-50% by South Asian & Middle East markets • Revenue and EBITDA have grown by 31.7% and 68.5% CAGR in the last 3 years during FY20-23. PAT recovered sharply from net loss of Rs 61 crore in FY20 to Rs 62.2 crore net profit in FY23. During FY23, company reported revenues of ₹ 589 crore (+43.4% YoY) and EBITDA of Rs 138.8 crore (+123% YoY). PAT in FY23 stood at ₹ 62.2 crore, which increased by 4.5x YoY.
Outlook
We recommend BUY on Bharat Wire Ropes. We value the stock at Rs 300 per share (based on 15x FY25 EPS)
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