Bharat Wire Ropes Ltd - Stock Valuation and Financial Performance

BSE: 539799 | NSE: BHARATWIRE | Metal - Non Ferrous | Small Cap

Bharat Wire Ropes Share Price

275.70 -9.15 -3.21%
as on 28-Mar'24 16:01

DeciZen - make an informed investing decision on Bharat Wire Ropes

Overall Rating
Bole Toh

1. Quality

2. Valuation

Fair

3. Price Trend

Bharat Wire Ropes stock performance -

mw4me loader
P/E Ratio (SA):
21.42
Market Cap:
1,938.2 Cr.
52-wk low:
132
52-wk high:
401.9

Is Bharat Wire Ropes Ltd an attractive stock to invest in?

1. Is Bharat Wire Ropes Ltd a good quality company?

Past 10 year’s financial track record analysis by Moneyworks4me indicates that Bharat Wire Ropes Ltd is a below average quality company.

2. Is Bharat Wire Ropes Ltd undervalued or overvalued?

The key valuation ratios of Bharat Wire Ropes Ltd's currently when compared to its past seem to suggest it is in the Fair zone.

3. Is Bharat Wire Ropes Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Weak which suggest that the price of Bharat Wire Ropes Ltd is likely to Fall in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of Bharat Wire Ropes:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Bharat Wire Ropes Ltd has not performed well majority of the past ten years indicating its past ten year financial track record is not good

Value Creation

Value Creation Index Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
ROCE % 4.4%4.1%1.8%0.5%3.1%0.9%0.2%1%4.2%10.6%-
Value Creation
Index
-0.7-0.7-0.9-1.0-0.8-0.9-1.0-0.9-0.7-0.2-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 82.276.760.764.8165241258250411589637
Sales YoY Gr.--6.7%-20.9%6.8%154.4%45.9%7.1%-2.9%64.2%43.4%-
Adj EPS 0.70.60.30.10.1-10-13.6-2.72.19.213.3
YoY Gr.--10.6%-45.8%-68.8%30%-7769.2%NANANA328.5%-
BVPS (₹) 23.524.130.831.331.321.47.96970.682.593.7
Adj Net
Profit
21.71.40.50.6-44.8-61.1-16.813.762.390
Cash Flow from Ops. 7.9-6.336.11731.982.8151-24423.783.2-
Debt/CF from Ops. 3.5-6.75.421.816.57.44.5-1.111.42.2-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 24.5%29%31.7%43.4%
Adj EPS 34%134.3%NA328.5%
BVPS15%21.4%118.9%16.8%
Share Price - 37.1% 98.1% 99.8%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
Return on
Equity %
2.82.51.40.30.4-36.9-88.1-7.13.112.315.1
Op. Profit
Mgn %
10.81213.69.410.77.811.213.115.123.627.1
Net Profit
Mgn %
2.42.32.30.70.4-18.6-23.7-6.73.310.614.2
Debt to
Equity
0.40.61.42.63.76.319.10.60.60.3-
Working Cap
Days
26830253460428024224024718015585
Cash Conv.
Cycle
151160207204135144144136817465

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 15.10%

Sales growth is growing at healthy rate in last 3 years 31.73%

Debt to equity has declined versus last 3 years average to 0.32

Sales growth is good in last 4 quarters at 13.82%

Net Profit has been subdued in last 3 years 0.00%

Latest Financials - Bharat Wire Ropes Ltd.

Standalone Consolidated
TTM EPS (₹) 13.3 13.3
TTM Sales (₹ Cr.) 637 637
BVPS (₹.) 93.7 93.7
Reserves (₹ Cr.) 569 569
P/BV 3.04 3.04
PE 21.42 21.43
From the Market
52 Week Low / High (₹) 132.04 / 401.90
All Time Low / High (₹) 10.50 / 401.90
Market Cap (₹ Cr.) 1,938
Equity (₹ Cr.) 68
Face Value (₹) 10
Industry PE 11.7

Management X-Ray of Bharat Wire Ropes:

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *69.1469.1469.1469.1451.0051.0044.6244.6244.6244.62
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of Bharat Wire Ropes

Adj EPS (Rs.)

Sales (Cr.)

ROE (%)

ROCE (%)

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Sales82776165165241258250411589
Operating Expenses 74675359148222229218349450
Manufacturing Costs3441112423224051
Material Costs56493648110152163158260329
Employee Cost 8987153131243544
Other Costs 7643111412131426
Operating Profit 89861719293262139
Operating Profit Margin (%) 10.0%12.0%13.4%9.4%10.4%7.8%11.2%13.0%15.1%23.6%
Other Income 00032111111
Interest 3443257390342322
Depreciation 2224122122222121
Exceptional Items 0-200000000
Profit Before Tax 21230-74-82-231897
Tax 11100-30-21-6434
Profit After Tax 20120-45-61-171462
PAT Margin (%) 1.8%0.4%2.2%3.8%0.2%-18.5%-23.7%-6.7%3.3%10.6%
Adjusted EPS (₹)0.50.10.30.50.1-9.9-13.6-2.72.19.2
Dividend Payout Ratio (%)0%0%0%0%0%0%0%0%0%0%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23

Equity and Liabilities

Shareholders Fund 69711381411419635431451560
Share Capital 29294545454545636468
Reserves 404193969651-10369387492
Minority Interest0000000000
Debt2140195370485468406269262171
Long Term Debt218173349434358279214207143
Short Term Debt1922222151110127555528
Trade Payables1814920373211113118
Others Liabilities 3427746973145254-18-1818
Total Liabilities 142152417599736742706694726767

Fixed Assets

Gross Block838486344581595595590590600
Accumulated Depreciation16182141535567799119
Net Fixed Assets676665340566560539513492481
CWIP 811159142211103
Investments 0000000002
Inventories373934447389786580110
Trade Receivables22141717233629364048
Cash Equivalents 227222643539
Others Assets620695446515674110113
Total Assets 142152417599736742706694726767

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Cash Flow From Operating Activity 8-636173283151-2442483
PBT 23230-74-82-231897
Adjustment 76644095112564544
Changes in Working Capital -1-152910-962121-278-39-57
Tax Paid 0-1-10000000
Cash Flow From Investing Activity -2-5-193-259-98-140-10-13
Capex 0-1-2-276-238-140-10-10
Net Investments 1000000000
Others -3-4-191181400000-3
Cash Flow From Financing Activity -131122717290-90-152247-25-64
Net Proceeds from Shares 00700000413344
Net Proceeds from Borrowing -81516517685-76-795-8-64
Interest Paid -4-4-4-3-25-73-89-98-23-21
Dividend Paid 0000000000
Others 00-4-1305917-723-23
Net Cash Flow -7070-6923-21-12-26
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Ratios
ROE (%)2.20.471.281.750.18-37.57-92.55-7.193.112.31
ROCE (%)5.894.572.611.294.32-0.151.081.615.7816.25
Asset Turnover Ratio0.610.570.230.140.250.330.360.360.580.79
PAT to CFO Conversion(x)4-INF368.5INFN/AN/AN/A1.711.34
Working Capital Days
Receivable Days89808687444546483427
Inventory Days1491652012011271231181046559
Payable Days117118114110563930222417

Bharat Wire Ropes Ltd Stock News

Bharat Wire Ropes Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of Bharat Wire Ropes on 28-Mar-2024 16:01 is ₹275.7.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 28-Mar-2024 16:01 the market cap of Bharat Wire Ropes stood at ₹1,938.2.
The latest P/E ratio of Bharat Wire Ropes as of 28-Mar-2024 16:01 is 21.42.
The latest P/B ratio of Bharat Wire Ropes as of 28-Mar-2024 16:01 is 3.04.
The 52-week high of Bharat Wire Ropes is ₹401.9 and the 52-week low is ₹132.0.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Bharat Wire Ropes is ₹637.0 ( Cr.) .

About Bharat Wire Ropes Ltd

The company was incorporated as Bharat Ropes Private Limited on July 24, 1986, at Mumbai, Maharashtra as a private limited company under the Companies Act, 1956. The company was converted into a public limited company pursuant to approval of the shareholders in an extraordinary general meeting held on May 2, 1992 and consequently, the name of the company was changed to Bharat Ropes Limited and a fresh certificate of incorporation consequent upon conversion to public limited company was granted on June 10, 1992. Thereafter, the name of the company was changed from Bharat Ropes Limited to Bharat Wire Ropes Limited and a fresh certificate of incorporation consequent upon change of name was granted by the Registrar of Companies, Mumbai, on July 5, 1996.

The company was originally promoted by the Shah Group and in the year 2010, one of its current promoters - Gaji Mercantile Private Limited purchased 1,06,75,490 Equity Shares under SPA dated June 30, 2010. The company’s existing steel wire ropes manufacturing facility with an installed capacity of 12,000 MTPA is located at Atgaon. The company also has a Pyrolysis plant with an installed capacity of 1,260 MTPA at Chalisgaon, Maharashtra for production of oil, which is used as fuel in its current manufacturing process.

The company is proposing to further enhance its capacity to manufacture wire ropes, structural strands and slings by setting up a fully integrated manufacturing facility with an installed capacity of 66,000 MTPA at Chalisgaon, Maharashtra. The company is an ISO 9001:2008 certified company by the British Standards Institution (BSI) for the manufacture and supply of steel wire ropes, stainless steel wire ropes, non-ferrous wire ropes, slings, relevant conductors, wire for specialized applications and rope fittings in domestic and international market. Its existing setup in Atgaon is accredited with Bureau of Indian Standards (BIS), ISO 9001:2008 and have obtained BIS Licenses for IS:2266, IS:4521, IS:1856, IS:1855,IS:2581, IS:9282, IS:12776. The company also holds product approvals from RDSO, CORE, DGMS, PGCIL, IRS etc. for various ropes and wire products.

Business area of the company

The company is a wire rope and wires manufacturing company. It is engaged in manufacturing and sales of wire ropes, structural strands, slings and wires which find its application in general engineering, fishing, elevators, cranes, material handling, power transmission, suspension bridges, onshore / offshore oil exploration, ports and shipping, mining, defence, railways etc. It is also engaged in the business of trading of the steel related products.

Major events

  • 1986: Incorporation of the company and commencement of Business Activities.
  • 1992: Conversion from a private limited company to a public limited company and consequently the name of the company was changed to Bharat Ropes Limited.
  • 1996: Change of name of the company from Bharat Ropes Limited to Bharat Wire Ropes Limited.
  • 2006: Shifting of the manufacturing facility from Bhandup, Mumbai to Atgaon, Thane.
  • 2010: Change in the Management of the company from the Shah Group to the Mittal family.
  • 2012: Raising of Equity of Rs 3000 lakh from Gaji Mercantile Private Limited and Rs. 1000 lakh from Passionate Investment Management Private Limited.
  • 2015: Sanction of Term Loan facility of Rs 33000 lakh.
  • 2015: Grant of Plot No - 4 admeasuring 2,54,376 square meters located at M.I.D.C. Chalisgaon Industrial Area, Village - Khadki, BK Chalisgaon, District Jalgaon - 424101, Maharashtra by way of Predetermined Lease Agreement dated March 31, 2015.
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