Steel stock jumps over 9% after after board approves ₹804 Cr CAPEX plan

The shares of a Microcap steel company primarily engaged in manufacturing, processing, and selling steel products, including engineering and other products and services, surged around 9 percent in today’s trade after its Capex plan announcement of Rs 803.47 Crore for a significant project. 

Price Action 

The shares of BMW Industries Ltd, with a total market capitalization of Rs 1,056.78 Crore on Thursday, hit an intraday high at Rs 48 per share, gaining 8.8 percent in today’s trade. As of 10:30 am, the shares slightly retreated from their day’s high and were trading at Rs 46.95 per share which was 6.4 percent higher than the previous close of Rs 44.13. BMW Industries Ltd.’s shares generated a return of 67 percent in the past three years and 272 percent in the past five years. 

What Happened 

As per a press release dated March 19, 2025, the Board of Directors of BMW Industries Limited approved a capital expenditure of Rs 803.47 crore, which will be funded through a mix of Internal Accruals and Debt. 

The company through this Capex is planning to expand its business by establishing a manufacturing plant in Bokaro, in the state of Jharkhand. The proposed project involves the development of a Downstream Steel Complex with an annual production capacity of 300,000 TPA of Cold Rolled Full Hard Coil/Sheet; 540,000 TPA of Galvanized Coil/Sheet, and 200,000 TPA of Color Coated Coils/Sheets. 

The project is anticipated to become operational in stages over the next two years, with the first plant expected to begin its commercial operations in FY26.  Through this expansion, the company will leverage its existing strengths in downstream steel processing and cater to the growing demand across India. Additionally, the project’s proximity to the Haldia/Kolkata port is favorable to cater to global markets as well. 

Also read: Stock under ₹100 jumps 8% after signing MoU for 5.37-acre plot to develop real estate projects

Financials

The company reported an increase of 2.54 percent YoY in Revenue from operations from Rs 144 Crore in Q3FY24 to Rs 148 Crore in Q3FY25. Their Net Profits jumped by 49.6 percent YoY from Rs 12 Crore to Rs 17 Crore over the same period. 

About BMW Industries Ltd

The company is engaged in the manufacturing of HRPO Coils, CR Coils, GP Coils, GC Sheets, MS and GI pipes, TMT rebars, etc, and processing the same for marquee steel players in India.  It is also engaged in tube galvanization and manufacturing of tubular poles/ structures, transmission line towers, and rebars. 

Written By Adhvaitha Nayani

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