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|
|Profit After Tax||16.88||15.06||3.06||8.64||8.01||0.75|
|EPS (not annualized)||1.02||0.91||0.18||0.52||0.48||0.05|
|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%|
- 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.