Target: ₹130
CMP: ₹106.70
Bhagyanagar India Ltd (BIL) is among the oldest and largest companies producing copper products in India. BIL produces Copper products such as Copper Rod, Strips, Pipes, Busbars, Sheets among others and has been a partner to its clients who are primarily Original Equipment Manufacturer (OEM).
Over the years, BIL has diversified into Telecom products, Solar products and Real Estate. BIL forayed into the non-conventional energy sector with a wind power project with an installed capacity of 9 MW at Kapatigudda, Karnataka.
BIL being one of the oldest and established copper products producer in India, is expected to benefit from the growth of its end user industries such as auto, electrical switch gears, renewable energy etc as the economy expands and manufacturing activity picks up. A healthy financial profile coupled with stable liquidity enables BIL to undertake its manufacturing activities with over stretching the balance sheet.
BIL has posted healthy financials over the period of time. Sales and EBIDTA have grown at a 5 Year CAGR of 13 per cent each while PAT have grown at 50 per cent. Debt to Equity ratio has improved significantly from 1.77x in FY23 to 1.24x in FY24.
We would recommend a Buy with a target price of ₹130 in the next 9-12 months’ time period.