Bengal Steel Industries Limited is a public company founded on March 12, 1947, in Kolkata, West Bengal. The company develops and produces steel, as well as provides real estate and other related services. In this article, we will explore Bengal Steel Industries’ growth potential and Bengal Steel share price target 2025 to 2050.
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Bengal Steel Industries Business Model
- Steel Making and Building: Bengal Steel Industries Limited manufactures steel products such as semifinished ingots and billets. They also provide making services, creating custom steel structures for a variety of industries.
- Real Estate Activities: The company works in real estate, which includes developing, selling, and leasing properties.
Bengal Steel Industries Fundamental Analysis
| Stock Name | Bengal Steel Industries Ltd. |
|---|---|
| Market Cap | ₹ 0.02 Cr. |
| 52W High | ₹ 0.05 |
| 52W Low | ₹ 0.02 |
| Stock P/E | 0.15 |
| Book Value | ₹ |
| Dividend Yield | 0.00 % |
| ROCE | 0.91 % |
| ROE | 0.81 |
| Face Value | ₹ 10.0 |
| Shareholders | March 2023 | March 2024 | March 2025 |
|---|---|---|---|
| Promoters | 75.11% | 75.11% | 75.00% |
| DIIs | 0.00% | 0.00% | 2.86% |
| Government | 0.02% | 0.02% | 0.02% |
| Public | 24.87% | 24.88% | 22.14% |
| No. of Shareholders | 684 | 684 | 687 |
Key Factors Driving Bengal Steel Industries Future Growth
- Rising Demand for Steel: Bengal Steel Industries will grow as industries like construction, automobiles, and infrastructure need more steel.
- Government Support: Policies that promote steel production and infrastructure development will benefit Bengal Steel Industries.
- Advanced Technology: Using modern machines and better production techniques will help Bengal Steel Industries make high-quality steel at a lower cost.
- Strong Domestic Market: Population growth and development will increase the demand for steel, allowing Bengal Steel Industries to expand.
- Ship Opportunities: Bengal Steel Industries will grow by selling steel to countries where demand is growing.
- Raw Material Availability: Easy access to iron ore and coal will help Bengal Steel Industries control production costs and remain successful.
- Responsibility Plans: Investing in green production methods and reducing waste will boost Bengal Steel Industries’ image and attract new customers.
- Skilled Workforce: Employment and education skilled workers will increase the efficiency and quality of steel produced by Bengal Steel Industries.
- Better Supply Chain: With stronger logistics and delivery, Bengal Steel Industries will be able to deliver steel faster and more successfully.
- Steel Product Innovation: Bengal Steel Industries will grow its business by developing new types of steel for various industries.
Pros of Bengal Steel Industries
- Strong Profit Growth: Bengal Steel Industries has achieved a strong profit growth of 26% CAGR over the last ten years.
- Low PE Ratio Compared to Peers: Bengal Steel Industries has a PE ratio of 0.15, which is lower than the industry average of 31.1, making it very undervalued and potentially a good investment opportunity.
- High Promoter Holding: Bengal Steel Industries has a strong promoter holding of 75%, indicating the promoters’ high confidence in the company’s future growth and stability.
- Increase in DIIs Holding: Domestic Institutional Investors (DIIs) have increased their holding to 2.86% in December 2024 from 0.00% in September 2024, which indicates growing confidence in the “Company Name” future potential by the DIIs.
- The market value of Bengal Steel Industries’ investments is ₹0.25 crore, which is significantly higher than the company’s market capitalization of ₹0.02 crore. This suggests that the company’s intrinsic value is much greater than its current market value.
Cons of Bengal Steel Industries
- Decreasing Profits – Bengal Steel Industries profits are decreasing at a CAGR of -32%. over the last three Years.
- Low Return on Equity (ROE): Bengal Steel Industries’ 5-year average ROE is 1.31%, which indicates inefficient use of shareholder funds to generate profits.
- Low Return on Capital Employed (ROCE): Bengal Steel Industries’ 5-year average ROCE is 1.50%, indicating inefficient use of capital to generate profits.
By the end of 2025, the Bengal Steel share price is expected to be around ₹1.20 in normal conditions. In a bear market, it might be ₹1, and in a bull market, it may go up to ₹1.45.
| Bengal Steel Share Price Target 2025 | Rupees (₹) |
|---|---|
| 1st Target | 1 |
| 2nd Target | 1.20 |
| 3rd Target | 1.45 |
By 2030, the Bengal Steel share price is projected to be around ₹2.5 under normal conditions. In adverse markets, the price could fall to ₹2.2, while favorable conditions might push it up to ₹3.
| Bengal Steel Share Price Target 2030 | Rupees (₹) |
|---|---|
| 1st Target | 2.2 |
| 2nd Target | 2.5 |
| 3rd Target | 3 |
| Years | Target Price |
|---|---|
| Bengal Steel Industries Share Price Target 2025 | ₹1 to ₹1.45 |
| Bengal Steel Industries Share Price Target 2030 | ₹2.2 to ₹3 |
| Bengal Steel Industries Share Price Target 2035 | ₹5 to ₹7 |
| Bengal Steel Industries Share Price Target 2040 | ₹10 to ₹15 |
| Bengal Steel Industries Share Price Target 2050 | ₹40 to ₹60 |
Disclaimer
This article is for educational purposes only. It is not a stock recommendation and should not be treated as such. Please ask your financial advisor before making any investment decision.
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