Jun 8, 2017

Bhansali Engineering Polymers: Value and Growth Stock

Bhansali Engineering Polymers is listed as Specialty chemicals on BSE and NSE. Group / Index: B / S&P BSE SmallCap.

Polymers used as raw material in Auto, Home appliance, etc.
Pledges of shares. Pledge shares 54.12 %.

Promoters has bought recently: 3.08%.

Very strong profit growth. March 15 profit: 5.4 cr to TTM: 34 cr. March 16 profit was 16.69 cr.

Sales growth TTM: 18%; Profit growth TTM: 108%.

From 2015, it has shown strong growth.

PE = 19 is long avg. It was at higher before 2015.
Very strong growth in Dec 2016 and March 2017. Reason for expecting high margin as past quarter from here?
Promoters shareholding increased from 51.59% in Sept 2016 to March 2017. Added in Dec 2016 and March 2017.

Bhansali Engineering Polymers I mentioned at FB group - Value and Growth Stocks.That time it was at Rs 40. The below text is from my previous blog post, I have posted here too after few days to inform you. I was checking it slowly and posting there so that others can check it too.
Took entry in Bhansali engineering polymer and Vikas ecotech.
Need to check more. Started small.
Vikas Ecotech at Rs 24.3.
Bhansali engineering polymer at Rs 42.95.

Company has been dragged to Company Law board by MKJ in 2011 for financial irregularity. Recently, MKJ has withdrawn the case. But court has cleared Bhansali Engineering Polymer's promoters and found MKJ and others guilty.

Raw Materials:
Styrene: 53%
Acrylonitrile (ACN) : 19%
Others: 19%
Butadiene: 8%.

Finished Products:
ABS Resins: 91%
SAN Resins: 5%

Lower crude price is good for the company. It also import Styrene from outside so stronger Rupee does not hurt it.

The manufacturing facilities of the company is located at AbuRoad, Rajasthan and Satnoor, Madhya Pradesh.

Competitor: INEOS Styrolution India Ltd.

The company will complete automation modernization by March 2017.

Expansion from 51KTPA to 80 KTPA is complete in March 2017.

Further expansion of 120 KTPA is proposed.

Good sales and profit growth from past 3 quarters. March 2017 quarter result is superb due to capacity addition.

The demand for ABS in India is largely dependent on two sectors, namely, appliances and automobiles.