Post Conference Note Bharat Connect Conference Rising Stars 2024
BEW Engineering Ltd
CMP: INR 1,503 | Market Cap: INR 4,627 Mn| View: Not Rated
Key highlights
● The company targets to have only 15 days receivables and thus only onboards orders which can be
completed in a short span. Order book timeline was 10-12 months before which has now come down
to 4 months due to this strategy.
● The capital coming in from fund raising will provide expansion opportunities leading to significant
growth.
● New infrastructure set up recently has started production in February with full-fledged production to
start in June.
● Capacity has doubled compared to September last year.
● Received big order from Aditya Birla (Thailand) and Bangladesh in FY24. First tranche of the Bangladesh order has been executed.
● Witnessing continuous in flow of repeat orders.
● Spherical dryer did not see the anticipated demand, but the company is optimistic of the product once
the industry uses it and realises its usage and potential.
Fund Raising
● The company raise INR 270mn through equity in September. Post September, INR 150mn warrants were issued; 25% of it has been received as FD. This week, INR 550mn worth of shares have been issued at INR 1540/share.
● The net worth will increase to INR 1300mn from INR 270mn.
Guidance
● Current order book at INR 700mn for next year.
● 20% revenue growth is expected in FY24 with much further improvements expected in revenue and margins going forward.
● Target to achieve INR 1500mn revenue in FY25. The company’s foray into larger customer base and new geographies will help in achieving these targets.
● Targeting much higher profitability with 25% EBITDA margins.
● Capacity expansion are in plans with Capex of INR 700mn with 10x revenue potential.
● The funds raised will help in becoming creditor debt free.
● Target to reach 100% capacity utilisation in the next 3 years.
● With planned capacity expansion and huge vendor base, the company is optimistic of achieving INR 2500mn revenue.
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