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On Tuesday, DAM Capital analysts initiated coverage on Bansal Wire Industries (BSE:BANSALWI) with a Buy rating and set a price target of INR481. Bansal Wire Industries is recognized as the second largest steel wire and the largest stainless steel wire manufacturer in India.
The analysts highlighted the company’s ability to maintain margins despite fluctuating raw material costs. They noted Bansal Wire Industries’ increasing market share in a fragmented market over the past decade. The company is currently undertaking a significant expansion, increasing its capacity by 62%.
With an existing capacity of 259kt in FY24, Bansal Wire Industries is projected to reach 679kt by FY26. This expansion, located in Dadri, Uttar Pradesh, will see the company entering the higher-margin specialty wire segment and achieving economies of scale.
DAM Capital analysts emphasized the company’s strong execution track record and its focus on growing faster than the market, positioning it well for future growth and margin improvements.
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