analysis of leader in chemical commodity with great potential
about company -
Bhansali engineering polymers limited (bepl) has pioneered in manufacturing international quality acrylonitrile butadiene styrene (abs). the company is a value driven organization, aiming excellence in providing quality products and services, since its incorporation in 1984.BEPL is a company that takes pride in being the lowest cost producer of ABS in India with quality standards ‘at par’ with the Global Best. The Company has joined hands with Nippon A&L Inc. (NAL), Japan for expanding its business of Styrene's Resins and supports the sale of ABS Resins, AES Resins, ASA Resins and their alloys with other plastics in the Indian Market.
product information-
1.ABS resin-ABS resin is one of the most widely-used engineering thermoplastics. It offers excellent surface appearance, strength & stiffness. ABS resin also has good toughness, low creep, excellent dimensional stability & chemical resistance. It is versatile and easy to process.
Application-Interior Automotive Trim, Small Appliances, Phones, Refrigerator Door Liners, Other Consumer Electronics, etc.
2.ASA resin- ASA resin is commonly used for outdoor and automotive applications due to its strong weather resistance, color fade resistance, UV resistance and mechanical properties. application- Exterior Siding, Automotive Side Mirror Housings, Signage, Marine Applications, Other Consumer Electronics.
3. SAN copolymers are produced by the polymerization reaction of styrenes and acrylonitrile. Styrene Acrylonitrile resin is a copolymer plastic commonly used in place of Polystyrene due to its greater thermal resistance.
application- Dishwasher-Safe Containers, Disposable Lighters, Brush Bristles, Auto Gauge Covers, Cosmetic Cases, Medical Syringes, Reflectors, Battery Cases
Global market scenario-
Acrylonitrile Butadiene Styrene Market was valued at USD 25.95 billion in 2020 and is anticipated to rise at a CAGR of over 6.3% from 2021 to 2027(around 46.88 billion). The increasing penetration of ABS in various applications has positively influenced the market growth. India Styrene Acrylonitrile resin (SAN) market demand stood at 260.81 Thousand Tones in FY2021 and is forecast to reach 437.28 Thousand Tonnes by FY2030, growing at a healthy CAGR of 5.91% until FY2030.
Based on the application, cosmetic industry is anticipated to drive the growth of styrene acrylonitrile market over the forecast period. This can be attributed to the growing product demand in the personal care and cosmetics segment. SAN copolymer is a synthetic polymer used as a film former in personal care and cosmetics products, given its opaque properties, and is seen in a host of formulas, including those for sunscreens and other lotions.
Global Acrylonitrile Butadiene Styrene Market: Global Size, Trends, Competitive, Historical & Forecast Analysis, 2021-2027- Factors such as increasing growth of automotive industry, adoption of ABS in automotive sector, various advantages of ABS in transportation, construction, electronics and other industries are some of the major factors driving the market growth.
*Indian Automobile Industry-
Being a great substitute to metals, ABS has been extensively used in manufacturing automotive parts .India is also a prominent auto exporter and has strong export growth expectations for the near future. In addition, several initiatives by the Government of India and major automobile players in the Indian market is expected to make India one of the leaders in the two-wheeler and four-wheeler market in the world by 2022.
*Appliances and Consumer Electronics (ACE) market-
The Indian government has been encouraging to consumer durable brands in India to ‘Make in India’ thereby expecting they should be self-reliant for the future. The Government of India has allowed 100% Foreign Direct Investment (FDI) under the automatic route in Electronics Systems Design and Manufacturing sector.(ACE) market is expected to increase at 9% CAGR to reach ` 3.15 trillion in 2022. Demand growth is likely to accelerate with rising disposable income and easy access to credit. Increasing electrification of rural areas and wide usability of online sales would also aid growth in demand. The government anticipates that the Indian electronics manufacturing sector will reach ~US$ 300 billion by 2024-25.
*Indian auto-components industry-
Auto-components industry accounts for 7.1% of India’s GDP. A stable government framework, increased purchasing power, large domestic market, and an ever-increasing development in infrastructure have made India a favorable destination for investment. The Indian auto-components industry is set to become the third largest in the world by 2025.exports of auto components grew by 76% to US$ 9.3 billion. As per the Automobile Component Manufacturers Association ACMA forecast, automobile component exports from India are expected to reach US$ 80 billion by 2026. The Indian auto components industry is expected to reach US$ 200 billion in revenue by 2026.
*3-D PRINTING MARKET GROWTH –
According to reports, the 3d printing India market is growing at 20% every year. It is expected that the 3d printing market will jump from $12.6 billion (in 2020) to $37.2 billion in 2026.
In 2022 and beyond, we will see more applications of metal 3d printing in the automotive, aerospace, and healthcare industries. It will open up several new opportunities to build prototypes, rapid tooling, functional parts manufacturing, and more. Several large-scale steel and aluminium manufacturing companies are collaborating with 3d printing companies to stay competitive in the global markets.
Industries that will adopt 3-D printing culture –
1.automobile-The automotive industry in India is growing at a rapid pace. Several international companies are expanding their presence in the Indian market to sell more vehicles than ever before. With increasing demand, the need for 3d printed parts will also increase in 2022.
2.Healthcare-3d printing in healthcare is a new trend in India that will gather more momentum in 2022. Several applications of 3d printing technology have already been used in the medical industry to create custom-made implants, models, and other tools for surgical purposes. Several companies are working on this technology to reduce the cost of treatment by cutting down recovery times significantly. By using 3d printing, the total cost of several implants and other tools will become possible to cut down significantly.
3.Defense -The Defense industry is one of the essential industries in India that will adopt 3d printing on a larger scale in 2022. Not only does it help to develop new weapons faster, but it also cut down production costs significantly. Moreover, it will remove foreign companies’ dependency on machinery and help the country with a significant competitive advantage over its geopolitical rivals.
4.Education-3d printing India has already made its presence felt in the education sector. Several schools and universities are using 3d printers to teach students about additive manufacturing. They get access to several designs and learn about the process of production at an early stage in their careers.
basic financial check -
.zero debt company ,Company’s EPS is increasing, i.e. company is making money, ROE% - 35.66%
.Debtors Turnover Ratio: During the FY under review, the Debtors Turnover Ratio was 5.80 as compared to 5.24 in the previous fiscal.
.Inventory Turnover Ratio: During the FY under review, the Inventory Turnover Ratio was 7.06 as compared to 11.45 in FY 2020-21.
.Operating Profit Margin (%): The Operating Profit Margin for FY 2021-22 stood at 33.87% as compared to 34.52% for FY 2020-21.
.Net Profit Margin (%): The Net Profit Margin for FY 2021-22 stood at 25.07% as compared to 25.81% for FY 2020-21.Note- even though inventory ratio decreased by around 4% still company is maintaining its profit margins no dent in margins is a good sign .
.gross sales are going up, PBT is increasing no dent in margins is a healthy signal.
. overall review of financials their are some areas where company may suffer pain but their is no massive fundamental change in company.
risk for company -
After rebounding to an estimated 5.5% in 2021, global growth is expected to decelerate markedly in 2022 - to 4.1 %, reflecting continued COVID-19 flare-ups.• Due to inflation spike, commodity prices are going to go up. In that case, company’s expenditure on raw material cost will increase. products manufacturing is heavily dependent
on raw material they import from other countries (Acrylonitrile, Butadiene, Styrene ) significant increase in global prices of this material would act as a key risk to profitability.
TECHNICAL ANALYSIS -
It will be value buy if anyone could accumulate this stock at level around 75 to 80 price range. at present value of stock interested buyer may accumulate first tranche.
this study is for education purpose only. invest your hard earned money after consulting with your financial advisor.
Bhansali engineering polymers limited (bepl) has pioneered in manufacturing international quality acrylonitrile butadiene styrene (abs). the company is a value driven organization, aiming excellence in providing quality products and services, since its incorporation in 1984.BEPL is a company that takes pride in being the lowest cost producer of ABS in India with quality standards ‘at par’ with the Global Best. The Company has joined hands with Nippon A&L Inc. (NAL), Japan for expanding its business of Styrene's Resins and supports the sale of ABS Resins, AES Resins, ASA Resins and their alloys with other plastics in the Indian Market.
product information-
1.ABS resin-ABS resin is one of the most widely-used engineering thermoplastics. It offers excellent surface appearance, strength & stiffness. ABS resin also has good toughness, low creep, excellent dimensional stability & chemical resistance. It is versatile and easy to process.
Application-Interior Automotive Trim, Small Appliances, Phones, Refrigerator Door Liners, Other Consumer Electronics, etc.
2.ASA resin- ASA resin is commonly used for outdoor and automotive applications due to its strong weather resistance, color fade resistance, UV resistance and mechanical properties. application- Exterior Siding, Automotive Side Mirror Housings, Signage, Marine Applications, Other Consumer Electronics.
3. SAN copolymers are produced by the polymerization reaction of styrenes and acrylonitrile. Styrene Acrylonitrile resin is a copolymer plastic commonly used in place of Polystyrene due to its greater thermal resistance.
application- Dishwasher-Safe Containers, Disposable Lighters, Brush Bristles, Auto Gauge Covers, Cosmetic Cases, Medical Syringes, Reflectors, Battery Cases
Global market scenario-
Acrylonitrile Butadiene Styrene Market was valued at USD 25.95 billion in 2020 and is anticipated to rise at a CAGR of over 6.3% from 2021 to 2027(around 46.88 billion). The increasing penetration of ABS in various applications has positively influenced the market growth. India Styrene Acrylonitrile resin (SAN) market demand stood at 260.81 Thousand Tones in FY2021 and is forecast to reach 437.28 Thousand Tonnes by FY2030, growing at a healthy CAGR of 5.91% until FY2030.
Based on the application, cosmetic industry is anticipated to drive the growth of styrene acrylonitrile market over the forecast period. This can be attributed to the growing product demand in the personal care and cosmetics segment. SAN copolymer is a synthetic polymer used as a film former in personal care and cosmetics products, given its opaque properties, and is seen in a host of formulas, including those for sunscreens and other lotions.
Global Acrylonitrile Butadiene Styrene Market: Global Size, Trends, Competitive, Historical & Forecast Analysis, 2021-2027- Factors such as increasing growth of automotive industry, adoption of ABS in automotive sector, various advantages of ABS in transportation, construction, electronics and other industries are some of the major factors driving the market growth.
*Indian Automobile Industry-
Being a great substitute to metals, ABS has been extensively used in manufacturing automotive parts .India is also a prominent auto exporter and has strong export growth expectations for the near future. In addition, several initiatives by the Government of India and major automobile players in the Indian market is expected to make India one of the leaders in the two-wheeler and four-wheeler market in the world by 2022.
*Appliances and Consumer Electronics (ACE) market-
The Indian government has been encouraging to consumer durable brands in India to ‘Make in India’ thereby expecting they should be self-reliant for the future. The Government of India has allowed 100% Foreign Direct Investment (FDI) under the automatic route in Electronics Systems Design and Manufacturing sector.(ACE) market is expected to increase at 9% CAGR to reach ` 3.15 trillion in 2022. Demand growth is likely to accelerate with rising disposable income and easy access to credit. Increasing electrification of rural areas and wide usability of online sales would also aid growth in demand. The government anticipates that the Indian electronics manufacturing sector will reach ~US$ 300 billion by 2024-25.
*Indian auto-components industry-
Auto-components industry accounts for 7.1% of India’s GDP. A stable government framework, increased purchasing power, large domestic market, and an ever-increasing development in infrastructure have made India a favorable destination for investment. The Indian auto-components industry is set to become the third largest in the world by 2025.exports of auto components grew by 76% to US$ 9.3 billion. As per the Automobile Component Manufacturers Association ACMA forecast, automobile component exports from India are expected to reach US$ 80 billion by 2026. The Indian auto components industry is expected to reach US$ 200 billion in revenue by 2026.
*3-D PRINTING MARKET GROWTH –
According to reports, the 3d printing India market is growing at 20% every year. It is expected that the 3d printing market will jump from $12.6 billion (in 2020) to $37.2 billion in 2026.
In 2022 and beyond, we will see more applications of metal 3d printing in the automotive, aerospace, and healthcare industries. It will open up several new opportunities to build prototypes, rapid tooling, functional parts manufacturing, and more. Several large-scale steel and aluminium manufacturing companies are collaborating with 3d printing companies to stay competitive in the global markets.
Industries that will adopt 3-D printing culture –
1.automobile-The automotive industry in India is growing at a rapid pace. Several international companies are expanding their presence in the Indian market to sell more vehicles than ever before. With increasing demand, the need for 3d printed parts will also increase in 2022.
2.Healthcare-3d printing in healthcare is a new trend in India that will gather more momentum in 2022. Several applications of 3d printing technology have already been used in the medical industry to create custom-made implants, models, and other tools for surgical purposes. Several companies are working on this technology to reduce the cost of treatment by cutting down recovery times significantly. By using 3d printing, the total cost of several implants and other tools will become possible to cut down significantly.
3.Defense -The Defense industry is one of the essential industries in India that will adopt 3d printing on a larger scale in 2022. Not only does it help to develop new weapons faster, but it also cut down production costs significantly. Moreover, it will remove foreign companies’ dependency on machinery and help the country with a significant competitive advantage over its geopolitical rivals.
4.Education-3d printing India has already made its presence felt in the education sector. Several schools and universities are using 3d printers to teach students about additive manufacturing. They get access to several designs and learn about the process of production at an early stage in their careers.
basic financial check -
.zero debt company ,Company’s EPS is increasing, i.e. company is making money, ROE% - 35.66%
.Debtors Turnover Ratio: During the FY under review, the Debtors Turnover Ratio was 5.80 as compared to 5.24 in the previous fiscal.
.Inventory Turnover Ratio: During the FY under review, the Inventory Turnover Ratio was 7.06 as compared to 11.45 in FY 2020-21.
.Operating Profit Margin (%): The Operating Profit Margin for FY 2021-22 stood at 33.87% as compared to 34.52% for FY 2020-21.
.Net Profit Margin (%): The Net Profit Margin for FY 2021-22 stood at 25.07% as compared to 25.81% for FY 2020-21.Note- even though inventory ratio decreased by around 4% still company is maintaining its profit margins no dent in margins is a good sign .
.gross sales are going up, PBT is increasing no dent in margins is a healthy signal.
. overall review of financials their are some areas where company may suffer pain but their is no massive fundamental change in company.
risk for company -
After rebounding to an estimated 5.5% in 2021, global growth is expected to decelerate markedly in 2022 - to 4.1 %, reflecting continued COVID-19 flare-ups.• Due to inflation spike, commodity prices are going to go up. In that case, company’s expenditure on raw material cost will increase. products manufacturing is heavily dependent
on raw material they import from other countries (Acrylonitrile, Butadiene, Styrene ) significant increase in global prices of this material would act as a key risk to profitability.
TECHNICAL ANALYSIS -
It will be value buy if anyone could accumulate this stock at level around 75 to 80 price range. at present value of stock interested buyer may accumulate first tranche.
this study is for education purpose only. invest your hard earned money after consulting with your financial advisor.
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