Whether the trend is decelerating or accelerating can clearly be found out by the capacity utilisation nos, which according to the analyst reports are now in the range of 70-75% for FY18, i.e a production of ~70k tonnes out of 100k capacity. With more capacity of 37k tonnes being available at end of FY19, there is a clear opportunity for slow ramp up of utilisation numbers. There is no need to speculate on that.
Company has an edge in ABS Market, due to duopoly and could perform better by utilizing its capacity and expansion plans.
But the main issue i found is with integrity of promoter. Specially after this write off of Rs 8 Crore debtor in latest quarter.
Discl : Not invested yet, analyzing the company
I have one question, why Cos is not holding quarterly call with investors ? For the last 3 qtrs, they are meeting all the analysts on earth. They are not sharing any presentation also
3 Likes
I think its a fair expectation from the management to share the interactions/discussion and QA with analysts.
This will answer all the questions.
I expect the management to share the QA after finishing all the sessions with analysts.
Came across this primer on ABS Resin :
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Fire death and serious injury in an industrial plant is not a good news for investors, especially when the production comes to a standstill. The management says one week of interruption, but that is without assessing the damage. Therefore we do not know the date of resumption of the operation in Satnoor plant, where SAN is produced. In the absence of production, SAN will be imported. With a weak rupee, the margins and the profits for the current quarter will be definitely impacted. The short term scenario is that the share price will be range bound with a downward pressure. It is upside that is going to be capped. So those, who are sitting on profits will book profit. This may prove to be a good opportunity for long term investors.
Disclosure: exited a small position on Monday @ 194, but plan to reenter at lower levels.
Fire and damage caused by fire is part of industrial hazards. The way management detailed it to exchange is clearly showing its efficient way of running business. Small disruption will occur in production,no doubt about it. But it will not affect company fundamentals. Opportunity for long term investors.
Disc : Sold nothing and Added more in 190 level on Monday. If it goes down more will add more.
2 Likes
Hi,
There is a discoure by the company that plant plans to resume operations w.e.f. 25-May. So that means almost 1 month of downtime. IMHO Apr-Jun quarterly results will be affected.
The Q1 results of Bhansali Engineering would indeed be affected.
In the meantime company seems to have formed bottom at around 162 levels.From here upward journey should begin.Though the upside should be capped.
Hi,
Has the company resumed operations in its plant? No news on BSE updates till now. It was supposed to start on 25-May.
Disc - Invested.
Hi, There is no news on their plant starting after fire although their was a disclosure in BSE that its going to start on 25 May ⌠In the meantime the stock gets badly beaten down⌠Is this only happening because of the fire ? or the international oil price hikes playing a role in it ? Can anyone please throw some light on this ⌠Thanks
DIsc - Invested
Update on plant commencing operations started and now in testing phase.
The announcement will happen in 2/3 days.
No shareholder has sold any share and there is no remote possibility.
Fundamentals are intact. There would be some(minor) impact on results due to Fire.
Golden opportunity to grab.
Disc: Invested
Update on plant commencing operations started and now in testing phase.
The announcement will happen in 2/3 days.
Source of this information?
2 Likes
BEPL put under ASM framework from June 1, along with a bunch of other stocks. New rules means 5% circuit filters and 100% margin levied.
Generally stocks go to under ASM when exchanges want to put more surveillance to prevent volatility and price manipulations so I feel it may give negative impression at the moment. I just come to this understanding by reading some article so may be I am wrong. Experienced people may suggest the detailed impact of this action. The below link is old but explains what is ASM.
I have following Queries regarding the business. I have analysed the company from March 2008 to March 2017.
Q1. The net fixed assets of the company were around 200 Cr in 2008 and reduced continuously every year and reduced to 90 Cr assets in 2017. Why it is so.
Q2. The net revenues of Company increased from 257 Cr to 626 Cr (10% CAGR) while the Net Fixed Assets declined from 197 Cr to 93 Cr (CAGR -8%) , Revenues get more than doubled while assets get halved in last 10 years. So how is it possible that Company is now generating more than Double revenues from Half the Assets.
Q3. Companies Cumulative Capex in last 10 years is Negative (-62Cr), So, what is the Capacity utilization of both the Plants of the Company. Also what is the life cycle of the Storage Tanks and other manufacturing Facilities. What is so special that company does not require Capex. All through these years between 2008-2016 , the Capex is negative.
Q4 .What is the reason behind the Companyâs Tax Percentage variance in following Years. Tax paid by company in March 2009 is 45% , 15% Tax in March 2010 , Negative (-400%) Tax in March 2012 , 47% Tax in March 2014 , 28% Tax in March 2016. Why these Tax percentage are not normal.
Q5. The Operating Profit margins are also not consistent. Between March 2012 to March 2016 they are around 3-4% now suddenly rose to 10% in 2017. What are the reasons for higher realizations and how long these margins can sustain. What OPM margins can we expect in coming years. How good the pricing power of the Company.
Q6. Net debt on Companies books was 32 Cr in March 2016 and Nil Debt in March 2017. Now even we can assume that company paid debt in March month of 2017 and therefore has some interest liabilities But how come company paid 10 Cr as finance cost(that is 31% of interest Rate) [interest = 3.65 Cr + Finance & Bank Charges = 6.14 Cr.].
Q8. Is there any renumeration policy of the Company or Company will always pay 11% of profits (Maximum as per Companies Act) as Renumerations to KMP. Is that the reason for huge increment in KMP Renumerations this year due to high profits.
Q9. Bhansali Nippon A& L Private Limited is a joint venture company. How does this company helps to BEPL. What role does it play. As per the AR 2017 , the joint venture company contributes only 12 Lakh as revenues and has 80 lakh Expenses. The BEPLâs shares of Fixed Asset in Joint Venture Company is just 12 Lakh. So why BEPL pays 4,26 Cr of amount to the Joint Venture Company (3 Cr Rent + 1.26 Cr Royalty)
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Fire breakout at Satnoor plant: 29 Apr
BEPL reported on exchanges: 30 Apr
Estimated time to recommence operations: 1 week
On 15th May, company announced 25th may is the recommencement date for production.
Eventually on 1st June, BEPL recommenced production on 1st June.
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Promoters are not selling. Recently the company secretary D N Mishra purchased about 13,200 shares.