Bhansali Engineering Polymers - An Import Substitution Story!


(Hardik) #103

That’s why I mentioned Facts to be verified in my above post. I am not sure what did he mean by that. There was one on one (rather one to many) discussions where someone had asked about the funds they have in liquid assets. Can someone who was present in the AGM please throw some light on this? @nikhilmoryani I think your friend had asked this to Jayesh B.? Any details would be helpful.

Mr. Bhansali did come across as passionate and dynamic entrepreneur but somewhere numbers are not adding up or I am missing something.


(nil_71) #104

I came to know about topline guidance in AGM but what about the bottom line one any guidance ???


(Nikhil Moryani) #105

Hi @hardikca

As per my friend, approx. 50 cr is lying in liquid funds as on date of the AGM. Rest, cash is being used to buy at cash discount from suppliers and hence lower creditors and higher inventory, plan is to free up cash from this source as and when needed for eapansion. Also, cash will be generated by giving some cash discount to buyers and lower receivables. Both the above put together will be used for expansion as and when needed. Around 80-100 free odd cr of free cash is expected to be generated in current fy. Any shortfall to the tune of 50-60 cr will be pumped in by the promoter himself. The promoter is very clear about not taking any debt or raising equity from outside. Won’t do rights issue too.

Please validate from your end, no onus.

IMO, WC mix will change for the good and hit margins by a bit. Also, we need to keep in mind whether 300 cr is just capital investment or also includes WC for expanded capacities.


(nil_71) #106

Yes- one of friends who attended AGM told me the same


(Deb) #107

Is pledging of promoter’s shareholding in full a issue here? Zero debt with highest pledging - can anyonr help?


(Bargain Hunter) #108

I think not many of us here have taken this post seriously Bhansali Engineering Polymers Ltd.- An Import Substitution Story!

Without a doubt that there is some amount of operator activity involved. I am feeling very queasy about this stock ,the growth projections and the capex involved as the math is not adding up.


(Hari) #109

He also mentioned in the AGM that he has spoken to Allahabad bank to remove all pledges they have (not sure how to verify this but almost looked like haan done deal type of a comment)


(Agarwala) #111

Which way will be the price movement?
BEPL is moving in a narrow triangle. Will the trendline of more than two months be violated? Then the price will move towards 60 or lower. If trendline is maintained, the price movement will be towards 100. Next few days will decide the price action in BEPL.


(yudiagg) #112

As per fundamentals - stock should move up. Recently , as per a news item, HDFC has recommended this as pick of the week. I tried but could not get the report on the net. May be some boarder can help.

Disc: invested.


(madhavikkutti) #113

Here is the report: https://www.hdfcsec.com/uat.hsl.research.pdf/BEPLPickoftheWeek-07081720170807090007.pdf.

There seems to be one discrepancy. At one place, the report talks about 137KTPA expansion by Dec-18, whereas it also says that the second phase will expand to 120KTPA by Dec-18. I think, 120KTPA has been mentioned incorrectly and 137KTPA is the correct figure.

Also, I have one curiosity. The capex required for expansion from 51KTPA to 80KTPA was Rs. 38 crores only, which translates to a per KTPA cost of 1.27 crore. If so, why is 80KTPA to 137KTPA expansion so expensive (300 crores, which translates to 5.26 crores per KTPA)?


(yudiagg) #114

Thanks for sharing the report. The interesting part is that, irrespective of the cost, they want to finance it from internal accruals and not debt. If true, it could boost profits exponentially.


(Mahesh) #115

The 80 to 137 capex is brownfield, at their existing facility. The larger one is greenfield. Maybe that’s the reason for coat differential


(Hardik) #116

Here is the explanation for the same in AGM.


(lohiyaakshay08) #117

Ineos’s results are out. Margin has dropped significantly. One need to be caution with the figures of BEPL as 2 companies of the 2 players industry rarely show contradictory results.

One point could be that Ineos was having too much stock which was purchased when the crude was at its high.


(lohiyaakshay08) #118

Promoters bought 600000+ shares last week


(nil_71) #119

@lohiyaakshay08 Can you share the link on the same ? It is mandatory to share promoters’ buying from market. Please share your source


(yudiagg) #120

Thanks for sharing. The promoters have, often, in the past, being buying
from open market.


(lohiyaakshay08) #121


(madhavikkutti) #122

Thanks for this news. If you recollect, promoter buying in Jun-17 had acted as a catalyst for the rally of this stock during Jun-July this year, when it had more than doubled its price. With clear capacity expansion plans ahead, hope to see somewhat similar rally ahead of Q2 results.


(lohiyaakshay08) #123

yes @madhavikkutti, I can recall. But at that time one more factor was the release of Annual report. they both contributed the rise from 55 to 70.

How you all are finding the corporate governance at BEPL? For me it is not upto the mark. They havent replied to my email & also the call. Request you all to try too.