Rs 295 crore order book: This multibagger engineering company delivers order worth Rs 4,00,00,000!
The stock is up by 61 per cent in 1 year and gave multibagger returns of 895 per cent in 3 years.
BEW Engineering Ltd, a leading designer & manufacturer of process equipment for the pharmaceutical & chemical industry, announced that the company has successfully delivered and installed a continuous fluid bed dryer machine of Rs 4,00,00,000 or Rs 4 crore order value with a capacity of 3,000 Kg per hour to a reputed domestic manufacturer in the chemical sector.
Continuous drying is a process used to remove moisture from various materials or products in an efficient manner. This system is widely employed in industries such as food processing, pharmaceuticals, chemicals, agriculture, and manufacturing.
The company has recently expanded into new areas, attracting new customers, and increasing its capacity. It anticipates a 40-50 per cent revenue boost this year, backed by Rs 295 crore worth of pending orders to be fulfilled in the next seven months. Their trade receivables stand at Rs 212.68 crore, with Rs 28.5 crore from new export clients, but they've already received this money, rendering their trade receivables at zero.
The company borrowed Rs 210.93 crore, with Rs 78.1 crore obtained through the government's ECLGS scheme—a 5-year loan with a 2-year moratorium and an 8% interest rate, mainly allocated for working capital during the Covid pandemic. They've utilized some of these funds to secure inventory for timely order completion and future planning.
In summary, the company is doing well and is expecting significant revenue growth this year. It has a strong order book and has already received payment for new export orders. The company has also borrowed money to secure inventory and support its expansion plans.
On Wednesday, shares of BEW Engineering surged 1.38 per cent to Rs 1,399 per share with an intraday high of Rs 1,399 and an intraday low of Rs 1,276.
The company has delivered good profit growth of 60.40 per cent CAGR over the last 5 years and a good return ROE track record: 3 Years ROE 36.9 per cent.
The stock is up by 61 per cent in 1 year and gave multibagger returns of 895 per cent in 3 years. Investors should keep an eye on this multibagger engineering stock.
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