Bhansali Engineering Polymers Ltd. (BEPL) AI Stock Analysis

• Market Cap: ₹21.88B
• Dividend Yield: 4.47%
• Average Volume (3M): 23.46K
• Price to Earnings (P/E): 13.4
• Beta (1Y): 1.26
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: IN
• Employees: 478
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals
• EPS (TTM): 1.70
• Shares Outstanding: 248,858,460
• 10 Day Avg. Volume: 19,596
• 30 Day Avg. Volume: 23,460
• PEG Ratio: 55.34
• Price to Book (P/B): 2.76
• Price to Sales (P/S): 1.98
• P/FCF Ratio: 26.92
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: ₹97.00 ▲(6.36% Upside)
• Action: Upgraded Date: 03/19/26
• Date: Action: Upgraded 03/19/26

The score is led by strong financial strength (notably the debt-free balance sheet) and supportive valuation (moderate P/E and high dividend yield). These positives are tempered by a mixed technical picture with negative MACD and the stock still below its 200-day moving average, plus some historical volatility in growth and cash flow conversion.

Positive Factors

Debt-free balance sheet

Zero reported debt materially lowers financial risk and preserves strategic optionality. Over a multi-month horizon this supports steady capital allocation for maintenance capex, capacity investments, dividends or opportunistic M&A without refinancing risk, improving resilience to cyclical shocks.

Supportive cash generation

Free cash flow roughly matching net income demonstrates that reported profits largely convert to cash, enabling internally funded working capital and reinvestment. This durable cash-generation capacity supports sustainable payout ability and funding for incremental capacity or product development.

Diversified product portfolio and end-markets

Serving multiple end-markets with tailored ABS/SAN grades reduces exposure to any single sector downturn and supports stable demand. Product-grade customization fosters customer stickiness and positions the company to capture structural demand from appliances, automotive components and electronics over time.

Negative Factors

Revenue decline

A negative revenue trend signals weakening top-line momentum and reduces visibility into normalization. Over several months this can strain utilization economics in polymer manufacturing, making it harder to cover fixed costs and hampering sustainable margin recovery absent renewed demand or pricing improvements.

Volatile operating cash flow / cash conversion

Significant swings in operating cash flow reduce predictability of internally available funds. For a capital- and working-capital-sensitive chemical business, this complicates investment planning, dividend reliability and inventory management, raising execution risk despite a strong balance sheet.

Inconsistent margins vs earlier peaks

Material margin compression relative to prior peaks suggests exposure to feedstock cost swings, pricing pressure or competitive mix shifts. Persistently lower margins would reduce reinvestment capacity and buffer against cyclicality, constraining long-term return sustainability and strategic flexibility.

Bhansali Engineering Polymers Ltd. Business Overview & Revenue Model

Company Description

Bhansali Engineering Polymers Limited operates a petrochemical company in India and internationally. The company manufactures and sells acrylonitrile butadiene styrene (ABS) and styrene acrylonitrile (SAN) resins, as well as high rubber graft. Its products include general purpose, heat resistant, weathering resistant, and extrusion ABS resins for automotive, home appliances, packaging, electronics, healthcare, and electrical applications; and SAN resins for stationery items and cosmetic packaging applications. The company also provides general purpose, heat resistant, and direct metalizing acrylonitrile styrene acrylate resins for automotive, pillar garnish, mirror housing, and construction applications; and heat resistant, extrusion, and paintable polycarbonate-ABS resins for automotive, electronics, home appliances, healthcare, packaging, and luggage/suitcase applications. In addition, it offers specialized grade tailor made products for metallic specialty, pearl specialty, low gloss specialty, ASA/PMMA, and ABS/PMMA applications. The company was incorporated in 1984 and is based in Mumbai, India.

How the Company Makes Money

BEPL primarily makes money by manufacturing and selling engineering plastic resins—mainly ABS and SAN—to industrial customers (plastic processors and component manufacturers) in India and, where applicable, export markets. Revenue is generated from (1) sale of ABS resin grades and (2) sale of SAN resin grades; these products are typically marketed in multiple grades tailored to end-use performance requirements (e.g., impact strength, heat resistance, or processability), enabling the company to serve diverse customer segments across appliances, automotive, electronics, and general plastics applications. BEPL’s earnings are influenced by (a) sales volumes, (b) realized selling prices for ABS/SAN, and (c) the cost and availability of petrochemical feedstocks/inputs used to produce these polymers; profitability generally depends on the spread between polymer selling prices and input/raw-material costs, as well as plant utilization and operating efficiency. Specific material partnerships, customer concentration, or contract structures: null.

Bhansali Engineering Polymers Ltd. Financial Statement Overview

Summary

Strong overall financial quality anchored by an exceptionally conservative, debt-free balance sheet. Profitability remains solid, but revenue and margins have been choppy versus prior years, and operating cash flow/ cash conversion has shown volatility.

Income Statement

Profitability remains solid with healthy gross and operating margins in the latest year (FY2025), and net profit holding up well. However, the earnings profile looks less consistent over time: margins have compressed materially versus earlier years, and revenue growth has been choppy (including declines in prior periods), which reduces confidence in a steady growth trajectory.

Balance Sheet

The balance sheet is exceptionally conservative with zero debt across all reported periods, which materially lowers financial risk. Equity remains sizeable and returns on equity are healthy in FY2025, though they are below the unusually high levels seen in earlier years, suggesting profitability has normalized versus peak conditions.

Cash Flow

Cash generation is generally supportive: free cash flow is close to net income in FY2025, indicating earnings quality is decent. The main concern is volatility—operating cash flow fell meaningfully in FY2025 versus FY2024 and cash conversion has fluctuated across years, which can pressure flexibility despite the strong balance sheet.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	13.24B	13.98B	12.22B	13.63B	13.94B	12.92B
Gross Profit	3.85B	4.04B	3.87B	3.72B	6.39B	6.03B
EBITDA	2.28B	2.53B	2.52B	2.05B	4.82B	4.57B
Net Income	1.67B	1.80B	1.79B	1.37B	3.50B	3.34B
Balance Sheet
Total Assets	11.71B	11.04B	10.56B	11.67B	11.08B	7.77B
Cash, Cash Equivalents and Short-Term Investments	1.04B	4.04B	1.59B	2.78B	1.89B	1.49B
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	1.33B	1.02B	1.33B	990.64M	1.27B	958.39M
Stockholders Equity	10.39B	10.02B	9.23B	10.68B	9.81B	6.81B
Cash Flow
Free Cash Flow	172.18M	1.03B	2.09B	1.35B	2.84B	1.03B
Operating Cash Flow	387.25M	1.09B	2.30B	1.40B	2.98B	1.03B
Investing Cash Flow	-2.93B	2.35B	451.15M	-153.20M	-3.00B	-207.24M
Financing Cash Flow	-497.72M	-995.43M	-3.24B	-497.72M	-497.72M	-88.05M

Bhansali Engineering Polymers Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BEPL	71 Outperform	₹21.88B	13.36	―	4.47%	―	―
EPIGRAL	67 Neutral	₹36.95B	33.65	―	0.46%	8.51%	32.37%
DEEPAKFERT	64 Neutral	₹119.02B	28.71	―	0.80%	21.68%	45.18%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
SPLPETRO	58 Neutral	₹125.13B	99.08	―	1.55%	-6.27%	-25.06%
DEEPAKNTR	52 Neutral	₹192.91B	59.14	―	0.44%	-7.50%	-37.67%
CHEMPLASTS	41 Neutral	₹43.59B	-8.77	―	―	6.50%	-70.69%