100% Dividend Declared: Record Date On 21st June; Buy The Specialty Chemical Stock?

During Monday's closing session, Bhansali Engineering Polymers' market cap, a small cap in the commodity sector, was Rs 2,588.87 Cr. The company produces Acrylonitrile Butadiene Styrene (ABS) for customers that include well-known manufacturers of kitchenware, appliances, electronics, cars, and healthcare products. The financial results for the quarter and year ending March 31, 2024, have been released by the corporation, along with a 100% dividend. The stock wrapped up today at Rs 104.03 each, up 0.01% following the news.

Bhansali Engineering Polymers Dividend

The Board of Directors "Recommended a Final Dividend of Re. 1 (100%) per Equity Share (of face value of Re. 1 each) for the financial year ended 31st March , 2024, subject to approval of the shareholders of the Company in the ensuing 40th Annual General Meeting. The said Dividend will be paid on or before 02nd July, 2024. Fixed the date of closure of Register of Members and Share Transfer Books of the Company from Saturday, 22nd June, 2024 to Friday, 28th June, 2024 (both days inclusive) for the purpose of holding the 40th AGM and payment of Dividend to Equity shareholders. Members holding shares as on the closing hours of Friday, 21st June, 2024 shall be entitled for Dividend," said the company in a regulatory filing.

Bhansali Engineering Q4 Results

The company's consolidated revenue from operations in the March 2024 quarter was Rs 321.18 crore, a 2.05% drop from the March 2023 quarter's Rs 327.90 crore. Its net profit climbed by 183.56% from Rs. 14.26 crore in Q4FY23 to Rs. 40.42 crore in Q4FY24. The company said in a stock exchange filing that its EBITDA reached Rs. 59.08 crore in the quarter under review up 97.53% from Rs. 29.91 crore in the year-ago quarter.

Bhansali Engineering Polymers Share Price Target

"Bhansali Engineering Polymers Limited (BEPL), a small-cap petrochemical company specializing in acrylonitrile butadiene styrene (ABS) resins and styrene acrylonitrile resins, presents a bullish investment outlook with its shares recommended for purchase between 101 to 102 and a target price range of 110 to 135. The company's stock is currently undervalued with a P/E ratio of 16.89, significantly lower than the sector's average P/E of 26.70. BEPL offers a remarkably high dividend yield of 10.90%, which is five times the sector average, underlining its strong profit distribution policy. Despite the positive outlook and a projected one-year return of 52.05%, investors should consider the risks associated with market volatility and sector-specific challenges, such as fluctuations in raw material costs and regulatory changes. The recommended stop-loss is set at 93 to manage potential risks," said V.L.A. Ambala, a Research Analyst (SEBI Registered), Co-founder - Stock Market Today (SMT).

Disclaimer

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