P/L Before Other Inc. , Int., Excpt. Items & Tax is 9.14% of sales for BEPL and it is 6.9% of sales for INEOS Styrolution India. These figures are for the last FY 17 (source moneycontrol). The rise is share price immediately before the results seems spectacular. I tried to dig out some news about increase in capacity related to INEOS Styrolution India, but I couldn’t get any such information. With little investment, if BEPL can increase capacity through brownfield expansion (from 80 to 137), and if raw material prices remain favorable—this can lead to huge increase in profits, even before the proposed port based expansion is undertaken. Much of it can be considered speculative at this stage though.
Disclosure: invested at 25 levels.
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