Bhansali Engineering Polymers Ltd has come out with Q1FY18 results on 14/07/2017. The scrip has seen a sharp uptrend in this quarter. The scrip closed at Rs. 74.15 at both NSE and BSE. This is against a price of Rs. 23.3 on 07/03/17. A quick review of significant developments related to company have been attempted
Bhansali Engineering Polymers: Salient Points
- The company is one of the two companies in the Acrylonitrile Butadiene Styrene (ABS) manufacturing in India. The other company is INEOS Styrolution.
- ABS finds use in industries like automobile, telecom and home appliances, etc
- Bhansali Engineering Polymer Ltd current installed capacity is 80,000 tonnes.
- Company’s operations are vertically integrated
- Bhansali Engineering Polymers manufactures 100 grades of ABS in 1200 colors
Company’s manufacturing plants are located at Abu Road, Rajasthan and at Satnoor, Madhya Pradesh.
- The Company has a 50:50 JV with Nippon for marketing to Automobile sector. Manufacturing is done by the company.
Bhansali Engineering Polymers: Price Movement
Bhansali Engineering Polymers: Financials
| Bhansali Engineering Polymers Quartery Results : Figures in Rs. Crore | ||||||
| June 17 | March 17 | Dec 16 | Sept 16 | June 16 | Mar 16 | |
| Sales | 224.03 | 192.73 | 122.95 | 163.31 | 147.05 | 155.98 |
| Total Income | 224.85 | 199.24 | 123.39 | 164.64 | 147.32 | 156.41 |
| Expenses | 194.49 | 170.92 | 113.84 | 147.8 | 130.93 | 144.42 |
| PBIDT | 30.36 | 28.32 | 9.55 | 16.84 | 16.39 | 11.99 |
| Interest | 1.11 | 2.61 | 2.29 | 2.61 | 2.28 | 2.7 |
| PBDT | 29.25 | 25.71 | 7.26 | 14.23 | 14.11 | 9.29 |
| Depreciation | 1.52 | 1.37 | 1.37 | 1.35 | 1.33 | 2.2 |
| PBIDT | 27.73 | 24.34 | 5.89 | 12.88 | 12.78 | 7.09 |
| Tax | 10.84 | 9.26 | 2.84 | 4.24 | 4.76 | 6.34 |
| Profit After Tax | 16.88 | 15.06 | 3.06 | 8.64 | 8.01 | 0.75 |
| Equity | 16.59 | 16.59 | 16.59 | 16.59 | 16.59 | 16.59 |
| Face Value | 1 | 1 | 1 | 1 | 1 | 1 |
| EPS (not annualized) | 1.02 | 0.91 | 0.18 | 0.52 | 0.48 | 0.05 |
| PBIDTM(%) | 13.55% | 14.69% | 7.77% | 10.31% | 11.15% | 7.69% |
| NPM(%) | 7.53% | 7.81% | 2.49% | 5.29% | 5.45% | 0.48% |
| EPS (TTM) | 2.63 | |||||
| Market Price | 74.15 | |||||
| PE (TTM) | 28.19 | |||||
| Qtrly Sales growth yoy | 52.00% | 24.00% | ||||
| Qtrly Sales Growth qoq | 16.00% | 57.00% | ||||
| Qtrly Net Profit Growth yoy | 111.00% | 1908.00% | ||||
| Qtrly Net Profit Growth qoq | 12.00% | 392.00% | ||||
Assessment
- ABS finds use in industries like automobile, telecom and home appliances, etc, the demand for which is growing
- Current installed capacity is 80,000 tonnes is being increased tp 1,37,000 bey Dec 2018
- Bhansali Engineering Polymers is also setting up a port based greenfield plant in Gujarat with a capacity of 200,000 Tonnes which is expected to come on stream by FY22.
- As per management Current capacity utilization presently at 85% is likely to go up to 95%.
- Company is going for expansion of capacity which is being funded entirely through internal accruals
- Bhansali Engineering Polymers RoE stands at 24%. The corresponding figure for its only competitor Ineos Styrolution. is 12.4%.
- The promoters have been increasing their stake in the company.
- The company’s 50:50 JV with Nippon for marketing has helped the company to gain foothold in Automobile sector & it clients include HMSI, Maruti Suzuki. It is also a major supplier to Refrigerators makers like Samsung, LG etc.
- The ABS market in the country is a duopoly giving price advantages.
- In view of anticipated growth in the end user industry, execution of the expansion plan through internal accruals and debt free status, company appears to be on a strong path of steady growth.
Standard disclaimer: I am not a SEBI registered analyst. I may have vested interest in every stock I discuss. Please do your own due diligence as stock market investments have high degree of inherent risk.