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 price chart
Bhansali Engineering Polymers: Financials
Bhansali Engineering Polymers Quartery Results : Figures in Rs. Crore
June 17March 17Dec 16Sept 16June 16Mar 16
Sales224.03192.73122.95163.31147.05155.98
Total Income224.85199.24123.39164.64147.32156.41
Expenses194.49170.92113.84147.8130.93144.42
PBIDT30.3628.329.5516.8416.3911.99
Interest1.112.612.292.612.282.7
PBDT29.2525.717.2614.2314.119.29
Depreciation1.521.371.371.351.332.2
PBIDT27.7324.345.8912.8812.787.09
Tax10.849.262.844.244.766.34
Profit After Tax16.8815.063.068.648.010.75
Equity16.5916.5916.5916.5916.5916.59
Face Value111111
EPS (not annualized)1.020.910.180.520.480.05
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 Price74.15
PE (TTM)28.19     
Qtrly Sales growth  yoy52.00%24.00%
Qtrly Sales Growth qoq16.00%57.00%
Qtrly Net Profit Growth yoy111.00%1908.00% 
Qtrly Net Profit Growth  qoq12.00%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.