#BEPL an Hidden GEM looking to Shine like a STAR #superchartz
Key Levels:
Support: 145 CL
Resistance: 165 to 170 CL
Technicals:
Bhansali Engineering Polymers Ltd has a market cap of ₹ 3,768 Cr and a current price of ₹ 151, nearing its 52-week high of ₹ 164 and well above its low of ₹ 81.6. The stock trades at a P/E ratio of 20.6, slightly above the industry P/E of 19.9, indicating a relatively fair valuation. It offers a dividend yield of 2.56% and a price to book value of 4.09. The company’s EPS stands at ₹ 7.33, and it has achieved a notable 44.0% return over the past three months, though its three-year return is a modest 4.85%. The enterprise value is ₹ 3,560 Cr, with a CMP/FCF ratio of 18.0, and it maintains a Piotroski score of 7.00, suggesting a strong financial position.
Fundamentals
Business Overview: Bhansali Engineering Polymers Ltd manufactures and sells ABS and SAN resins, among other plastics. ABS resins contribute significantly to the company’s revenues.
Revenue Breakup FY23:
ABS: 92.6%
SAN: 1.74%
Trading Sales: 5.68%
R&D Achievements: Development of 16 new grades with improved properties, and commercialization of 6 of them. Development of 125+ new color grades with 36 commercialized.
JV with Nippon: 50:50 JV with Nippon A&L Inc. for expanding business in Styrenics Resins.
Manufacturing Capabilities:
Two facilities in Abu Road, Rajasthan, and Satnoor, MP with a total capacity of 75,000 TPA.
Capacity utilization at 97% in FY23.
Capacity Expansion: Plans to expand ABS and SAN capacity to 145,000 TPA by March 2026, with an approved Capex of 500 Cr delayed due to COVID-19.
Financial Ratios:
ROCE: 24.4%
ROE: 18.1%
Return on Assets: 16.2%
Sales: ₹ 1,267 Cr.
OPM: 17.1%
Current Ratio: 7.30
Debt to Equity: 0.00
Inference:
Bhansali Engineering Polymers Ltd exhibits strong technical indicators with a significant recent price increase and a healthy dividend yield. Its fundamental aspects show robust business operations, particularly in the ABS segment, supported by strategic R&D and a significant capacity expansion plan. The company's financial health is strong with high ROCE, ROE, and zero debt, indicating efficient management and potential for growth, especially with its focus on the automotive industry and support from its JV with Nippon.
Support: 145 CL
Resistance: 165 to 170 CL
Technicals:
Bhansali Engineering Polymers Ltd has a market cap of ₹ 3,768 Cr and a current price of ₹ 151, nearing its 52-week high of ₹ 164 and well above its low of ₹ 81.6. The stock trades at a P/E ratio of 20.6, slightly above the industry P/E of 19.9, indicating a relatively fair valuation. It offers a dividend yield of 2.56% and a price to book value of 4.09. The company’s EPS stands at ₹ 7.33, and it has achieved a notable 44.0% return over the past three months, though its three-year return is a modest 4.85%. The enterprise value is ₹ 3,560 Cr, with a CMP/FCF ratio of 18.0, and it maintains a Piotroski score of 7.00, suggesting a strong financial position.
Fundamentals
Business Overview: Bhansali Engineering Polymers Ltd manufactures and sells ABS and SAN resins, among other plastics. ABS resins contribute significantly to the company’s revenues.
Revenue Breakup FY23:
ABS: 92.6%
SAN: 1.74%
Trading Sales: 5.68%
R&D Achievements: Development of 16 new grades with improved properties, and commercialization of 6 of them. Development of 125+ new color grades with 36 commercialized.
JV with Nippon: 50:50 JV with Nippon A&L Inc. for expanding business in Styrenics Resins.
Manufacturing Capabilities:
Two facilities in Abu Road, Rajasthan, and Satnoor, MP with a total capacity of 75,000 TPA.
Capacity utilization at 97% in FY23.
Capacity Expansion: Plans to expand ABS and SAN capacity to 145,000 TPA by March 2026, with an approved Capex of 500 Cr delayed due to COVID-19.
Financial Ratios:
ROCE: 24.4%
ROE: 18.1%
Return on Assets: 16.2%
Sales: ₹ 1,267 Cr.
OPM: 17.1%
Current Ratio: 7.30
Debt to Equity: 0.00
Inference:
Bhansali Engineering Polymers Ltd exhibits strong technical indicators with a significant recent price increase and a healthy dividend yield. Its fundamental aspects show robust business operations, particularly in the ABS segment, supported by strategic R&D and a significant capacity expansion plan. The company's financial health is strong with high ROCE, ROE, and zero debt, indicating efficient management and potential for growth, especially with its focus on the automotive industry and support from its JV with Nippon.
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