Stock price of this wire manufacturing company is surging for six months; here's why

Bharat Wire Ropes surged 13% on Wednesday, hitting its 52-week high.

Shares of Bharat Wire Ropes hit a 52-week high of Rs 129. The stock has increased by about 12 per cent in one day. The stock has experienced a high volume rise and upward trajectory during the last three days. Its 52-week low is Rs 49.70. The stock nearly doubled in value in just six months. 

Here's why the stock has seen a steady surge in the last six months.

Bharat Wire Ropes Limited is one of the largest manufacturers of Steel Wire rope in India and globally. It has steadily developed over time into a reputable name in the wire ropes industry. The business has committed itself to producing brilliant wire ropes, wire strands, and wire rope slings of the highest quality possible. Its broad product selection satisfies the functional requirements of a wide range of industrial applications and the booming oil and gas sector. It has successfully addressed the needs of drilling and oil exploration operations, as well as those of exploration rigs, derrick cranes, and offshore winches. The company extends its expertise to general engineering needs, defence applications, aviation, maritime operations, and any other imaginable heavy industrial operations. 

The business performed fantastically in the first quarter of FY23. Revenue reached Rs 132.8 crore, up 70 per cent YOY. The company has a strong potential for expansion, as seen by the three-year sales growth at a CAGR of 20 per cent. When compared to the same period the previous financial year, capacity utilisation significantly improved in Q1-FY23, rising to 50 per cent from 40 per cent, which increased its EBITDA by 92 per cent YOY. The addition of balancing equipment has debottlenecked plant processes, enhancing sales potential even more. The company's net profit for the first quarter of FY23 was Rs 12 crore, up 667 per cent YOY. 

Additionally, the company's conference call makes it appear as though it is vigorously pursuing global market expansion. The operating margin increased to 19 per cent in the first quarter of FY23. They were at 15.7 per cent in the previous quarter. 

The company's days with receivables also saw a considerable improvement. Receivable days have decreased from 48 to 34. The stock PE is 37x. and the company has a market capitalisation of Rs 811.89 crore.