Multibagger BMW Industries share price jumps 10% to 2-week high. Here’s why

Shares of BMW Industries, a leading manufacturer in the downstream steel sector, jumped 10% in intraday trade on Tuesday, March 25, hitting a 2-week high of ₹49.51 apiece. This came after the company, in an exchange filing on Monday, announced that it had signed a Memorandum of Understanding (MoU) with the Ministry of Steel under the Production Linked Incentive (PLI) Scheme 1.1 for specialty steel.

"As a qualified beneficiary of the PLI scheme, BMWIL will manufacture ‘Coated/Plated Steel Products of Metallic/Non-Metallic alloy’ and ‘Al-Zn Coated (Galvalume)’ products at its upcoming Greenfield Downstream Steel Complex in Bokaro, Jharkhand," the company stated.

Commenting on the development, Mr Harsh Bansal, Managing Director of BMW Industries Limited, said, “We are honoured to be qualified under the PLI Scheme of the Ministry of Steel, led by the Honourable Minister for Steel & Heavy Industries, Shri H D Kumaraswamy. This milestone will fortify our downstream steel capabilities and expand our footprint in both domestic and international markets."

"With our strategically positioned Bokaro plant and seamless access to key resources, we are confident this project will create enduring value for our stakeholders while contributing to the government's vision of advancing specialty steel production in India. Aligned with our Honourable Prime Minister's ‘Make in India’ and ‘Atmanirbhar Bharat’ initiatives, we remain committed to promoting self-reliance and driving growth in the steel sector," he further added.

The company last week announced an ₹800 crore capital expenditure for the establishment of a greenfield Downstream Steel Complex in Bokaro, Jharkhand, which it said would be funded through a mix of internal accruals and debt. According to the company, the proposed project involves the development of a downstream steel complex with an annual production capacity of 300,000 TPA of cold rolled full hard coil/sheet, 540,000 TPA of galvanized coil/sheet, and 200,000 TPA of color coated coils/sheets. The project will be located in Bokaro, Jharkhand.

The company also stated that it already possesses the required land, which is designated for industrial use and will serve as the site for this greenfield project.

Stock price history

The company's shares have been on a downward trend over the last eight months, losing 34% of their value, following a one-way rally witnessed between June 2023 and August 2024, which resulted in a stellar gain of 186%.

Despite the recent correction, the stock remains up by 286% over the last five years. The company is one of the leading manufacturers in the steel sector, engaged in the production of HRPO Coils, CR Coils, GP Coils, GC Sheets, MS and GI pipes, TMT rebars, and processing these materials for marquee steel players in India.

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