Shares of BMW Industries, a prominent player in the downstream steel industry, experienced a remarkable surge of 20% during Monday’s trading session, reaching a peak of ₹55.28 per share. This impressive leap comes on the heels of a significant announcement regarding a major work order from Tata Steel, which has captured the attention of investors.
Major Order from Tata Steel
In a mid-session filing, BMW Industries disclosed that it has secured a substantial contract from Tata Steel Limited. This order, valued at approximately ₹1,764 crore, is for the processing and conversion of coils at their facility in Jamshedpur. The contract is set to last until March 31, 2029, showcasing the long-term commitment between the two companies.
- Contract Value: ₹1,764 crore
- Location: Jamshedpur
- Contract Duration: Until March 31, 2029
This new order surpasses BMW Industries’ current market capitalization, which stands at around ₹1,244 crore as of today. In March, the company had already announced plans for an ₹800 crore capital expenditure aimed at establishing a greenfield downstream steel complex in Bokaro, Jharkhand. This project will be financed through a combination of internal resources and debt.
Upcoming Greenfield Project
The upcoming complex is poised to significantly boost production capacity, with projections of:
- 300,000 TPA of cold rolled full hard coils/sheets
- 540,000 TPA of galvanized coils/sheets
- 200,000 TPA of color-coated coils/sheets
The site in Bokaro is already designated for industrial use and is ready for the development of this ambitious project. Furthermore, in March, BMW Industries entered into a Memorandum of Understanding (MoU) with the Ministry of Steel under the Production Linked Incentive (PLI) Scheme 1.1 for specialty steel, reinforcing its growth trajectory.
Stock Performance Overview
The stock has shown a remarkable recovery this month, increasing by 18% after a prolonged period of stagnation that lasted nine months (from August 2024 to March 2025), during which it lost 35.65% of its value. Before this downturn, BMW Industries had witnessed a stunning 186% increase in stock price from June 2023 to August 2024. Despite the recent fluctuations, the stock has maintained an impressive 332% increase over the past five years.
Conclusion
BMW Industries continues to solidify its position as a leader in the steel manufacturing sector, producing a variety of products including HRPO coils, CR coils, GP coils, and TMT rebars. With strategic partnerships and ambitious projects on the horizon, the future looks bright for this multibagger small-cap stock.
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