In 2013 it introduced its new product line ( SteilWallz ) after a stagnating topline. The change in the business focus is evident from the management commentary. From 2013 onwards there is stark difference in the business numbers.
I have collated the data from the AR (standalone) going back to 2005 to spot the changing trend -
The first thing is the change the growth rates in sales & earnings. From 2005-2012 the topline degrew at 7% and PBITDA grew at 11%. From 2013-2017 the growth in sales has been 15% and PBITDA is at 22%.
The other thing is the change in borrowings. The borrowings increased at 35% CAGR from 2005-2012, while they have increased at 3% from 20013-2017.
The current debt level of 28cr seems to be reasoable compared to its sales of 169cr. Its interest coverage is 4.4 which is also manageable. The balance sheet seems to be holding up well.
Customer advances that had dropped from 2006-2012 have now steadily grown from 2013 to 2016 ( dont have data for 2017)
Working capital cycle down to 17 days in 2017 from 26 days in 2013.
The operating margins that had reduced from 9% in 2005 to 6.6% in 2012 have now grown to 11.4% in 2017 - however a part of this improvement can certainly be attributed to raw material prices going down (the business is sensitive to raw material prices)
Coming back to present day, the company seems to expanding rapidly with its prefab product Steilwallz as this article suggests.
There are some other pointers as well
in 2016 it appointed Abhaya Shankar as President – Business Acceleration and Strategy. Earlier he was MD of Hyderabad Industries ( the market leader in roofing solutions with their brand charminar ). Then he had a stint with Kisan Moulding a polymer pipe player.
In Feb 2016 it also acquired M/s. Sarovar Insulation Pvt Ltd - a company engaged in engaged in the manufacture and processing of EPS products at Coimbatore and at SUPA, Ahmednagar, Maharashtra following a JV with Saideep Polytherm a Pune based company again engaged in EPS manufacture & supply.
The promoters had infused 5.51cr in the company by allotting warrants that were converted to 9,50,000 equity shares in 2011 & 2012 @Rs 58
All these dots seem to suggest that Beardsell has spotted an opportunity in the Pre Fab segment and is refocusing its energies rapidly. Beardsell is also one of the 16 companies mentioned in the "Compendium of Prospective Emerging Technologies for Mass Housing" prepared by BMPTC ( Building Materials & Technology Promotion Council Ministry of Housing & Urban Poverty Alleviation Government of India)
With the govt push towards prefab technologies one gets a sense that good times for Beardsell are ahead and it is well positioned to exploit this opportunity.
Disc - Have a beginning position so views may be biased.