Share price of the specialised engineering thermoplastics maker grew on Friday by 5.6 percent to Rs. 117.4, the highest since October 2021.
The shares of Bhansali Engineering Polymers Limited (BEPL) are on track to gain for the second consecutive week and opened at Rs. 114.1 on Friday.
BEPL received environmental clearance from the State Level Environment Impact Assessment Authority, Rajasthan, to expand its production of ABS (Acrylonitrile Butadiene Styrene) resin and saleable SAN (Styrene Acrylonitrile) resin for its plant located at Abu Road, Sirohi in Rajasthan.
Since the company is already in receipt of environmental clearance for 50,000 TPA HRG (High Rubber Graft) at the Satnoor plant, the environmental clearance or approvals allow it to achieve a total capacity increase of 2.25 lakh TPA.
Though the environmental clearance is for the expansion of ABS Resins up to 2 lakh TPA and saleable SAN Resin up to 25000 TPA, the company stated that, at present, it further plans to expand ABS and SAN capacity up to 1.45 lakh TPA, which is to be completed latest by March 2026.
With a market cap of Rs. 2,863 crores, the share price of Bhansali Engineering Polymers Ltd. moved up by 3.42 percent on Friday and closed at Rs. 115.45 while the previous close was Rs. 111.2.
Financially, the company has been delivering a good return on equity and has been maintaining a healthy dividend payout of 75.6 percent. In the last 6 months, the company has given over 22 percent of returns whereas, in a span of one year, it has given 47.01 percent of returns.
BEPL is held by 1.13 percent of FIIs and just 0.05 percent of DIIs, aggregating to 1.18 percent of institutional holding. The company’s revenues from operations had experienced losses of 2.25 percent year-on-year (YoY) from Rs. 1,394 in FY22 to Rs. 1,363 in FY23.
Bhansali Engineering Polymers Ltd. in the manufacturing and sales of ABS Resins, AES Resins, ASA resins, SAN resins and their alloys with other plastics in the Indian market. Its customers include leading companies dealing in home appliances, electronics, automobiles, healthcare, and kitchenware.
Written by Shivani Singh
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