Bharat Wire Ropes manufactures and distributes wire ropes and allied products used in various sectors including infrastructure, construction, mining, and shipping.
Current Stock Price: ₹265.90 (as of July 5, 2024)
Recent Performance:
- The company’s share price has increased significantly over the past year, gaining around 198.7%.
- Bharat Wire Ropes has shown good revenue and profit growth over the past 3 years.
STRENGTH
- Profit growth of 44.56% (past 3 years).
- Revenue growth of 31.73% (past 3 years).
- Debt reduction of ₹87.16 Cr.
- Low PEG Ratio (indicating potential for undervalued stock).
- Efficient Cash Conversion Cycle.
- Healthy liquidity position.
WEAKNESS
- Not paying dividends.
- Increasing debtor days (time taken to collect payments).
- High promoter holding with a significant portion pledged (potential selling pressure).
OPPORTUNITIES
- Growth in infrastructure and construction spending.
- Increasing demand for wire ropes in renewable energy sector.
THREATS
- Competition from domestic and international players.
- Fluctuations in raw material prices.
- Economic slowdown impacting demand
Technicals:
- The stock is currently trading in a channel range.
- A break above ₹300 could signal a potential uptrend.
- Targets based on technical analysis: ₹404, ₹598, ₹917 (Please note, this is for informational purposes only and should not be considered financial advice)
Overall, Bharat Wire Ropes appears to be a company with strong growth potential. However, investors should carefully consider the company’s financials, risks, and technical indicators before making any investment decisions.
Disclaimer: This analysis is for informational purposes only and should not be considered financial advice. Please consult with a qualified financial advisor before making any investment decisions.