Bhansali Engg. (BEPL)
CyclicalFairStock Score: 53/100 — MIXED
Score breakdown: P/E: 2/3 · ROCE: 2/2 · Growth: 1/2 · Dividend: 1/1
Key Financials
| Current Price | ₹123.7 |
| Market Cap | ₹3,078.38 Cr |
| P/E Ratio | 15.39 |
| ROCE | 25.34% |
| ROE | 17.3% |
| Dividend Yield | 3.23% |
| Profit Growth | 39.39% |
| Debt/Equity | — |
| Sales Growth | 50.41% |
| Free Cash Flow | ₹1,63,57,530.88 Cr |
| Promoter Holding | 57.47% |
| 52-Week Range | ₹74.2 — ₹138.5 |
| Sector | Chemicals & Petrochemicals |
| Book Value | ₹43.53 |
Strengths
- ROCE of 25.34% indicates strong operational capital efficiency
- ROE of 17.30% is solid, with a clean, likely debt-free balance sheet
- Dividend yield of 4.91% provides income while waiting
- Promoter holding of 57.47% aligns interests with public shareholders
- P/E of 12.05 is modest against current earnings
Concerns
- Sales growth of -12.85% shows shrinking demand for its products
- PEG of 3.57 suggests valuation offers little compensation for low growth
- Piotroski F-Score of 6/9 implies only moderate fundamental health
- P/B of 2.65 means no margin of safety on book value for a cyclical
AI Analysis
When I look at Bhansali Engineering, I see a business earning a return on equity of 17.30% and a return on capital employed of 25.34% – numbers that suggest a decent franchise in specialty chemicals. The balance sheet appears clean, with debt-to-equity not reported, implying little or no leverage. That is comforting. But I must be honest: sales have declined nearly 13%, while net profit rose only 3.38%. That tells me the profit growth is likely coming from cost discipline or margin expansion, not from growing demand. At ₹103.36, the stock trades at a P/E of 12.05 and a P/B of 2.65. The 4.91% dividend yield is attractive, and promoter holding of 57.47% aligns interests with minority shareholders. However, a PEG ratio of 3.57 warns me that I am paying a reasonable multiple for very little growth. The Piotroski score of 6/9 is mediocre, not a sign of strong fundamental improvement. With declining revenue and a stock price between its 52-week range, this looks like a cyclical business in a soft phase, not a growing compounder. Benjamin Graham would demand a margin of safety; at 2.65 times book value, I don't see one. I would wait for either a cheaper price, perhaps closer to the lower end of its range, or clear evidence that the top line has turned. Until then, I'd rather watch and stay disciplined.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer