BEPL share price target 2025-2030 | Next Multibagger ?

BEPL share price target 2025-2030: Hello friends, today we will discuss another stock called Bhansali Engineering Polymers Ltd or BEPL in short. We will analyse the sales, profit and loss, balance sheet and technical charts to reach a conclusion as to what will be the BEPL share price target from 2025 to 2030.

About Bhansali Engineering Polymers Ltd

Bhansali Engineering Polymers Ltd was established in the year 1986 and is based in Mumbai.

Bhansali Engineering Polymers Ltd basically manufactures plastic resins like ABS (Acrylonitrile Butadiene Styrene) AES (Acrylonitrile Ethylene Styrene) resins, ASA (Acrylonitrile Styrene Acrylate) resins, and SAN (Styrene Acrylonitrile) resins. 

These resins are used to make products such as pipe, automotive body parts, wheel covers, enclosures, and protective headgear. 

The company also combines two or three kinds of resins to create unique blends to meet specific industry or client needs. BEPL has established itself as one of the leading supplier of these resins. 

Bhansali Engineering is operating two production facilities right now, one in Abu Road (Rajasthan) and the second in Santoor (Madhya Pradesh). Both these facilities can produce a total of 75,000 tons of polymers per annum. The utilization rate of the production machine is 97%. 

BEPL share price target table

Analysis of financial ratios of BEPL

Here we will analyze some financial ratios such as market cap, debt levels, P/E Ratios and ROE/ROCE ratios of BEPL as a means of providing us with insight into their performance over the last year. These will give us an indication as to their true standing within its sector and market place.

Market Cap

Bhansali Engineering Polymers Ltd carries a market capitalisation of Rs 2607 crores, meaning they fall into the small/micro cap category. If risk aversion is an important consideration for you, small cap stocks should generally be avoided due to higher risks involved with them.

Share Price

Current market value stands at Rs 104; 52 week high is Rs 118 and low Rs 66.4; this compared with last April when stock was valued at only Rs 69; meaning you could have doubled your money had you invested at that point!

Book value and P/E ratio

BEPL may not be suitable at its current price of Rs 104 as its P/E ratio of 17.1 exceeds industry P/E of 16.4. This suggests the stock is overvalued; to support our claim further the book value per share stands at Rs 35 and therefore indicates more than three times overvaluation of BEPL shares.

ROCE and ROE

At 19% and 13.3% respectively, this company is showing excellent returns on capital and equity respectively, signalling successful operations as well as efficient use of its capital resources. These numbers demonstrate company’s high performance.

Debt

As far as debt goes, the company is debt free – meaning its operations are running efficiently while using equity financing for liquidity requirements.

Profits

BEPL is profitable as well, having posted an estimated net profit after tax (PAT) figure of Rs.152 crores during its most recent 12-month financial period.

Returns

The company has given 50% returns in last one year. However, three year average returns average -1.49% which may discourage long-term investors.

Overall, BEPL’s financial ratios demonstrate its reliability and strong operational efficiency. Profitability and no debt indicate excellent management within the organization.

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BEPL share price target 2024

BEPL has a strong and hard working research and development team which works consistently to innovate and create new products to cater to market needs. The R&D team has developed 16 new polymers in 2023 and out of which 6 have already been launched into the market. 

The company has also created 125 new colour grades out of which 36 have been released into the market as well.

This shows that the company is trying to stay ahead of the competition and trying to take the first mover advantage. These new products will definitely improve company’s sales in 2024.

The initial price target for BEPL in 2024 is projected to be ₹136.10.  

With favourable market conditions, the mid-year price target for BEPL could reach ₹138.15. 

By the end of 2024, the price target for BEPL is expected to potentially reach ₹140.58, considering bullish market trends.

BEPL share price target 2024 is as follows

BEPL share price target 2025

BEPL has recently ventured in a 50-50 partnership with the Japanese company Nippon AL Inc. This partnership aims to grow the Styrenics Resins business. This collaboration will also improve distribution network of various resin types such as Acrylonitrile Butadiene Styrene (ABS), Acrylonitrile Ethylene Styrene (AES), and Acrylate Styrene Acrylonitrile (ASA) resins as well as their blends in India’s expansive market.

The initial price target for BEPL in 2025 is projected to be ₹179.49.  

With favourable market conditions, the mid-year price target for BEPL could reach ₹182.44. 

By the end of 2025, the price target for BEPL is expected to potentially reach ₹185.60, considering bullish market trends.

BEPL share price target 2025 is as follows

BEPL share price target 2030

Due to the Covid-19 pandemic in the year 2020-21, many businesses suffered losses. In October 2021, BEPL also made an expansion plan to raise its production capacity from 75000 tons per annum to 200000 tons with a budget of Rs 500 crores. However, the plan of expansion was postponed due to covid-19 lockdown.

In January 2024, the company finally obtained permission for ABS to increase capacity to 200,000 tons and SAN to 25,000 tons annually; although initially their intention was for 145,000-ton capacity which should be completed by March 2026.

The company is focusing on increasing its presence in the ABS market and Nippon will provide support in the expansion plans. 

The initial price target for BEPL in 2030 is projected to be ₹412.  

With favourable market conditions, the mid-year price target for BEPL could reach ₹421.49. 

By the end of 2030, the price target for BEPL is expected to potentially reach ₹428.79, considering bullish market trends.

BEPL share price target 2030 is as follows

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Profit and loss analysis of BEPL

Let’s now take a look at the profit and loss statement of Bhansali Engineering Ltd. This analysis will tell us if the company is on the right path of operations or not. We will consider the data of the last 5 years only.

Sales

When we look at the sales of BEPL, they have grown at a rate of only 6% in last 5 years. In 2020 the sales were Rs 1104 crores and in trailing twelve months the sales have been Rs 1228 crores. These numbers show that the company has probably retained its existing clients but is unable to onboard new ones.

Expenses

Coming to the expenses, they have pretty much stayed the same. In 2020 the expenses were Rs 1018 crores and in TTM the expenses were Rs 1045 crores. The company even managed to reduce the expenses in the year 2021 and 2022. 

Operating Profit

The operating profit has also seen growth thanks to the control over expenses. In 2020 BEPL’s operating profit was only Rs 86 crores which has increased to Rs 183 crores in TTM.

Net profit

The net profit has also grown in the same manner as the operating profit. The net profit was Rs 67 crores in 2020 but in the trailing twelve months the company has reported net profit of Rs 152 crores.

In total the profit and loss statement of BEPL shows that the company is profitable and the profits are rising annually. However, the company needs to acquire new clients and increase the sales numbers to grow more.

Shareholding of BEPL

The shareholding patterns of recent years tell us how promoters, public, Institutional investors perceive the company. Let’s check the shareholding of BEPL to find out the behaviour of major investors.

Promoters

In the last 5 years the promoter’s shareholding has been consistent at around 56%. This shows that the promoters have firm belief in the operations of the company. Moreover, around 50% of promoter holding is ideal.

FIIs

The FIIs have kept a nominal share in the company at 1.10%. For the investors, the presence of FIIs is crucial and such investors may be disappointed. 

DIIs

DIIs are totally disinterested in BEPL because they hold only 0.05% share right now. Domestic institutional investors do deep research and analysis before investing in a company and that is why their absence may be a signal that there is something wrong with the operations. The other reason could be that the company has not come onto the radar of DIIs. 

Public

Public investment has also remained pretty much the same over the years at 42%. The prime reason could be the allocation of shares because promoters have not let go of their shares. 

In summary, the shareholding patterns suggest trust of the promoters and other investors in the company. This means that the company is operating well and the investors have hopes that the company will do well in future.

Conclusion

In this post we analysed the future share price targets of BEPL and we also assessed the profit and loss and financial ratios of the company. To conclude, BEPL is a very good micro cap company with excellent sales and net profits. The company is debt free and has also given good returns to the investors. 

Fundamentals of the company are strong and so are the technicals. The current price may not be ideal to buy the stock but at a price of around Rs 90, this stock could suit your portfolio. We would suggest you do your own research as well because this is a small cap company and such companies are riskier than the large cap or midcap companies. 

Disclaimer: Dear Readers, please be aware that we are not associated with SEBI (Securities and Exchange Board of India). The information found on this site should only be considered educational and should not be seen as financial advice or stock recommendations. Share price predictions should only be taken as an estimate and considered valid when there are positive market signals present; any uncertainty concerning either your company or market status won't be taken into consideration in this study. Though our informational site serves educational purposes, we cannot be held liable for any financial losses you might experience as a result of using it. Instead, it serves only to keep you up to date about the stock market and financial products so you can make better investment choices - please do your own research prior to any investment decisions being made by yourself or through third parties.