INSUBCONTINENT EXCLUSIVE:
This first-generation smallcap petrochemicals firm has been busy doubling its bottom line as well as investor wealth for some time now
Financial year 2017-18 was the fourth consecutive year when Bhansali Engineering Polymers (BEPL) posted over 100 per cent growth in net
profit.
Shares of the company have been doing wonders on Dalal Street, with a nearly 1,000 per cent surge in two years
The scrip traded at Rs 209 on April 19, 2018, rising from just Rs 18.80 on April 11, 2016.
Analysts are optimistic that the stock will go
across industries like auto, home appliances, telecommunications, luggage and other sectors.
For the year ended March 31, 2018, the company
reported a net profit of Rs 99.64 crore, up 179.64 per cent from Rs 35.63 crore reported for the year-ago period
Its bottom line figure for FY16, FY15 and FY14 stood at Rs 16.69 crore, Rs 5.40 crore and Rs 1.48 crore, respectively.
The company has a
strong clientele, who include HMSI, Maruti, Whirlpool, Samsung, LG, Toyota, Mahindra, Bajaj, Godrej ,Hero Motocorp, TVS Motor, among
others.
Bhansali Engineering is debt-free
On March 31, it informed the bourses that it had repaid the entire amount of the sanctioned working capital credit facilities amounting to
Rs 216.5 crore to Allahabad Bank, Mumbai.
The bank has issued it a no dues letter and released some 5 crore equity shares pledged with it
along with other collateral securities, including land and building, plant machinery, all other fixed assets related to its Abu Road Plant
per cent at the end of December and September quarters, respectively
BM Bhansali, Jayesh B Bhansali, Meenakshi Bhansali and others are among the major promoters in the company.
Shares of BEPL currently trade
at 29 times of FY19E EPS of Rs 7.26
its balance sheet and fund its expansion plans through internal accruals show strength in its fundamentals, brokerage Hem Securities said in
a note.
Bhansali Engineering expects to save its logistics cost and increasing quality competitiveness against international giants in ABS
It is used for manufacturing drain-waste-vent (DWV) pipe systems, musical instruments (recorders, plastic clarinets, and piano movements),
golf club heads (because of its good shock absorbance), automotive bumper bars, medical devices for blood access, enclosures for electrical
and electronic assemblies, protective headgear, whitewater canoes, buffer edging for furniture and joinery panels, luggage and protective
carrying cases, small kitchen appliances, and toys.
Brokerage Prabhudas Lilladher says it expects BEPL to grow revenues at 44.4 per cent
CAGR and Ebitda by 71.2 per cent over FY17-20E and profits by 79.6 per cent to Rs 1,890 crore, Rs 310 crore and Rs 200 crore, respectively,
crore in FY18 from Rs 704.09 crore a year ago.
The company is in the midst of expanding capacities aggressively and has ramp-ups lined up
to, given the demand dynamics of the industry in which it is now as the leading player
was renamed as Bhansali Engineering Polymers on January 23, 1986.
