Deep dive into the fundamentals of BEPL

25 mar 2022

Currently BEPL is trading at a market price of 131 Rs. It’s current TTM EPS is 26.50 Rs. And in the past 5 years BEPL is traded at an average P/E Ratio of 14.1. If we simply calculate the fair value of the stock, it is 374 Rs. Which make the stock hugely undervalued. Within next 1.5 years we can expect a return of 185% from these levels and more depends upon the future performance of the company. Even if stocks falls more due to current market sentiments, we can expect sharp recovery when positive sentiments will hit the market.

Below are the basic fundamental details mentioned:-

Basic details :-
1. Name - Bhansali Engineering Polymers Ltd
2. BSE Code - 500052
3. Ticker Symbol - BEPL
4. Sector - Materials
5. Industry - Petrochemicals
6. Market Cap - ₹ 2,181 Cr.(Smallcap)
7. Current Price - ₹131

Basic query :-
1. 5Y Avg ROE - 39.43%
2. 5Y Avg ROCE - 51.31%
3. 5Y Avg Net Profit Margin - 10.13%
4. 5Y Avg OPM - 15.72%
5. 5Y Avg Cash Flow Margin - 10.13%
6. 5Y Sales growth - 19.48%
7. 5Y EBITDA Growth - 63.20%
8. 5Y Profit growth - 83.18%
9. 5Y EPS Growth - 83.20%
10. 5Y Op. Cash Flow Growth - 9.37%
11. 5Y Free Cash Flow Growth - 32.97%

Other factors :-
1. Stock P/E Ratio - 4.9
2. Stock P/B Ratio - 2.57
3. 5Y Avg ROA - 20.15%
4. Quick Ratio - 6.6
5. Current ratio - 6.81
6. EPS - ₹26.50
7. Debt - 0
8. Cash Equivalents - ₹ 192.4 Cr.
9. Interest - ₹ 0.55 Cr.
10. EBIT - ₹ 588 Cr.
11. Debt to equity - 0
12. Interest Coverage Ratio - 1,070

Industry Beater :-
1. 5Y Revenue growth Vs Industry Avg - Higher
2. 5Y Net Income growth Vs Industry Avg - Higher
3. 5Y Free cash flow growth Vs Industry Avg - Higher
4. 5Y Market Share - Increasing

23 kwi 2022

Uwaga

Fundamentals are still intact but there is an update in fair value of the stock because the March 2022 EPS released is ₹21.1/share which makes the fair value in the range of 251-293. YOY Growth is appealing and still makes the stock attractive and undervalued.