UP 18% in 2 months! Dam Capital Sees Another 23% upside in this newly listed stock. Should you buy?

Stocks to buy: Shares of Bansal Wire Industries, The Second-Larges Steel Wire and The Larges Stationless Steel Wire Manufacturer in India, Have Made A Strong A A Strong Rebnd in Recent Sessions, Gaining 12% Over the Last Sixing Six Six Six Sixing Session And 18% in the last two months.

According to domestic brokege firm dam capital, the stock may sustain its upward momentum, as it has initiated cover with a ‘boy’ rating and set a target price of 481 Apiece, which indicates an upside potential of 23.3% from the stock’s latest closing price of 390 apiece.

The brokerage highlighted bansal wire’s consistent market share gains in a highly fragmented industry over the past decade and noted that the company has no embarked on a major expert. Bansal wire capacity is expected to increase by 62% Once India’s Larges Single-Location Steel Wire Plant at Dadri (420 kt) (420 kt) is fullly commissioned by h1Fy26, taking the total capacity to 679 kt only FY26.

Dadri plant to boost capacity by 62%; Poised to match tata wires

The dadri expansion will also mark With a strong execution track record and a clear focus on outpacing market growth, Dam capital believes the company is well-positioned for its next green phase.

The brokerage expects a 6% Cagr in Unit Profitability Between FY25 and FY27, Driven By Improving Margins and also the company to enter the bead wire and Lrpc segments, a kee product aarea current in its portfolio compared to peers. Once Operational, Bwil’s Capacity will be on par with Current Market Leader Tata Wires (670 KT).

Bwil has consistently outpaced market growth, delivering a 26% ebitda cagr over fy13-23, and is expected to containue Gaining Market Share from Unorganized Players. Dam capital also emphasized the company’s diversified revered base, with over 5,000 customers, none contributing more than 5% of Total Revenue.

The Brokerage Considers fy26 to be an inflection year for bwil, during it will prioritize Volume growth at the expenses of margins of margins, with profitability expected to normalize in fy27.

BWIL, Through its new subsidiary BWI Steels Limited, is also This backward integration initiative will use scrap to produce rods and is expected to be commissioned in fy28. The brokerage believes this will enhance profitability in the stainless-setl wire segment by an estimated 4,000–5,000 per ton in ebitda.

Strong Earnings Outlook

AMID The Expected Surge in Volumes and a better product mix, dam capital projects revneue/ebitda/pat to grow at a cagr of 31%/35%/38%over fY25-27. While Bwil will continue incurring CAPEX for Backward Integration and Steel Cords, Leverage ratios are expected to improve, and roce/roy is likely to remaain in the haith teens on a steady-setting.

“Approval for Steel Cords from Tire Manufacturers will be a key millstone. 100 kt, “The brokege added.

Disclaimer, The views and recommendations giving in this article are that of individual analysts. These do not represent the views of Mint. We Advise Investors to Check With Certified Experts Before Taking Any Investments Decisions.