Declared 100% Dividend, Record Date June 21st; Invest in Specialty Chemical Stock?
Bhansali Engineering Polymers, a small cap in the commodities sector, had a market value of Rs 2,588.87 crore at Monday’s closing session. The firm manufactures Acrylonitrile Butadiene Styrene (ABS) for a number of well-known producers of automobiles, appliances, electronics, kitchenware, and medical supplies. The company has declared a 100% dividend and presented the financial results for the quarter and year ending March 31, 2024. In response to the news, the stock ended the day at Rs 104.03 a share, up 0.01%.
Dividend for Bhansali Engineering Polymers
For the fiscal year that concluded on March 31, 2024, the Board of Directors “Recommended a Final Dividend of Re. 1 (100%) per Equity Share (of face value of Re. 1 each), subject to approval of the Company’s shareholders in the ensuing 40th Annual General Meeting.” The aforementioned Dividend must be disbursed on or before July 2, 2024.
The date of the company’s share transfer books and register of members will be closed on Saturday, June 22, 2024, and Friday, June 28, 2024 (inclusive), in order to accommodate the 40th AGM and distribute dividends to equity shareholders. The business said in a regulatory filing that “Members holding shares as on the closing hours of Friday, June 21, 2024, shall be entitled for Dividend.”
Q4 Results for Bhansali Engineering
In comparison to the March 2023 quarter’s Rs 327.90 crore, the company’s consolidated revenue from operations in the March 2024 quarter was Rs 321.18 crore, a 2.05% decrease. From Rs. 14.26 crore in Q4FY23 to Rs. 40.42 crore in Q4FY24, its net profit increased by 183.56%. In a stock market statement, the business said that its EBITDA increased 97.53% from Rs. 29.91 crore in the quarter before to the review to Rs. 59.08 crore.
The share price target for Bhansali Engineering Polymers is 110 to 135. The company, a small-cap petrochemical company that specializes in acrylonitrile butadiene styrene (ABS) and styrene acrylonitrile resins, offers a bullish investment outlook. It is advised to purchase its shares between 101 and 102. At a P/E ratio of 16.89, the company’s stock is now undervalued compared to the industry average of 26.70. With a dividend yield of 10.90%, which is five times higher than the industry average, BEPL has an exceptionally robust profit distribution strategy.
Investors should take into account the risks related to market volatility and sector-specific obstacles, such as variations in raw material prices and regulatory changes, even with the favorable outlook and forecast 52.05% one-year return. In order to mitigate possible risks, a stop-loss of 93 is advised, according to V.L.A. Ambala, a research analyst (SEBI registered) and co-founder of Stock Market Today (SMT).
