Steel stock surged to its upper circuit after securing a lucrative order worth over ₹14 crore from RBM Infracon
Steel stock The shares of Polycarbonate sheet manufacturers surged by 2 percent, hitting an upper circuit after securing substantial work orders worth Rs 14.25 crore from RBM Infracon Limited.
Bansal Roofing Products Ltd, with a market capitalization of Rs 124.21 crore, saw its shares trading at Rs 94.22 each, marking a 2 percent increase from the previous closing price of Rs 92.38.
The rise in share value can be attributed to Bansal Roofing Products Ltd recently entering into a contract with RBM Infracon Limited for the Design, Supply, and Erection of a Pre-Engineered Steel Building, totaling Rs. 14.25 crore. This includes P&F, Transportation, and Transit Insurance costs, plus GST as per government regulations.
In terms of financial performance, the company experienced a 37 percent decrease in revenue, dropping from Rs 26.92 crore in Q2FY24 to Rs 16.68 crore in Q2FY25. Similarly, net profit plummeted by 36 percent, falling from Rs 0.83 crore to Rs 0.53 crore during the same period.
Looking ahead, the company’s Unit II boasts a production capacity of 800 tonnes per month, with plans to expand to 2000 tonnes. Specializing in Pre-Engineering Buildings (PEB) such as factory sheds and warehouses, Bansal Roofing Products Ltd has successfully completed over 250 projects worldwide. The company’s order book is secured for 2.5-3 months, with a goal of increasing the operating profit margin from 5.08%.
Future Plans:
The company is planning to expand Unit II with the goal of achieving a turnover of Rs. 200-250 Cr. without expecting any major expenses. Future capital expenditures may be financed through accruals, with revenue growth directly tied to fluctuations in steel prices, which will support increased profitability.
Ratio Analysis:
The company’s key ratios indicate a decrease in the return on equity from 17.33 percent in FY22-23 to 12.84 percent in FY23-24, and a decrease in the return on capital employed from 20.76 percent to 17.25 percent. The net profit margin (NPM) for the fiscal year 23-24 is 3.35 percent.
Company Profile:
Bansal Roofing Products Ltd is a well-known company specializing in the manufacturing of Roofing Products & Accessories. Its products are in high demand for industrial roofing applications such as airport hangars, warehouses, farmhouses, and industrial sheds.
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