Bhansali Engineering Polymers Limited (BEPL) Analysis

Bhansali Engineering Polymers Ltd is engaged in manufacturing and sale of ABS Resins, AES Resins, ASA resins, SAN resins and their alloys with other plastics in the Indian market. Major clients of the company include large Indian brands namely Bajaj, Exide, Fiat, Aquaguard, Beetel, VIP, Samsonite, BPL, Onida, Sanyo, Videocon, Voltas, Whirpool, Electrolux, Crompton, IFB, LG, Kenstar, Tata, Toyota, and many more.

It supplies:

  1. Refrigerator Liner & Door Handle
  2. Door Handle
  3. Air Conditioner body and Fan Blades
  4. Top & Front Panel of Washing Machines
  5. Body of Vaccum Cleaner
  6. Cooler & Geyser Body
  7. Chargers ABS
  8. Water Purifiers ABS
  9. Mixer Grinders & other Kitchen Products
  10. Switch Plate ABS
  11. Led Light ABS
  12. And a number of ABS material for automotive sector like side mirrors, radiator grill, wheel cap, door handle etc.

BEPL is a small cap company with a market capitalization of around 2000 crores. Its almost debt free company with profit around 300 crores. Its ROE stands good at almost 45%. Its profit has increased on year-on-year basis. If profit growth is checked for this FY 2021-22, it is -22% because the growth after FY 2020-21 was tremendous owing to the corona lockdown.

BEPL stock has a good 10 years CAGR of 22%. Fundamental of this company looks strong. Technically, BEPL was in downtrend and now it has already broken the downtrend and gave a breakout from Inverse Head and Shoulder pattern. Today, it took support on the neck line which is basically the pullback in the stock as depicted below:

This stock can be entered above the today’s high of 126 with a SL of 104. As per Dow theory, entry should be above the previous high. If the stock confirms support on the neck line and starts moving up then targets of 160-170 can be achieved in a short time frame as per Fibonacci.

Above Information is for educational purpose only. No trades solicited.

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