Shares of consumer company BPL were locked within the upper circuit for the tenth straight trading day, up 5 per cent at Rs 60.75 on the BSE on Thursday. The stock is quoting at its 52-week high level, having rallied 86 per cent within the past fortnight . as compared , the S&P BSE Sensex was down 0.02 per cent at 58,237 points at 12:10 pm.
Over 90,000 equity shares had changed hands on the counter and there have been pending buy orders for 534,599 shares on the NSE and BSE, data shows. Currently, BPL is trading under the T group on the BSE. within the T2T segment, each trade has got to end in delivery and no intra-day netting of positions is allowed.
According to BPL, the electronic industry is poised for better growth, buoyed by the government’s ‘Make in India’ policies. Currently, nearly 85 per cent of computer circuit Boards (PCBs) are imported by and thus this is often one among the components that are being seriously considered for import substitution. this is often an enormous opportunity and therefore the electronic manufacturing companies have participated within the Production Linked Incentives (PLI) schemes of the govt and expanded their capabilities and capacities, the corporate said
“The size and quality of latest business opportunities have grown considerably over the past few months. the corporate has taken appropriate steps towards strengthening the PCB Portfolio, through performing on new products like RF PCBs. These new products represent a profitable new direction for the company’s PCB Division,” BPL said within the fiscal year 2020-21 (FY21) annual report.
In July 2021, Brickwork Ratings (BWR) reaffirmed the ratings for the loan facilities of BPL. the corporate and therefore the promoters have an extended diary of around three decades and extensive experience within the PCB and durables industry, which has helped them in understanding the business cycles, establishing relationships with suppliers and customers, obtaining repeat orders and addressing associated inherent risks, the agency said in its rating rationale.
The company added new customers like Havells, Crompton Greaves during FY20 that are likely to support the envisaged increased sales from the manufacturing of PCBs. PCB sales were around 22 per cent of the company’s revenue in FY20 which increased to around 69 per cent in FY21.
BWR believes BPL’s business risk profile are going to be maintained over the medium term. The outlook could also be revised to ‘Negative’ if the corporate reports significantly less than expected performance leading to further deterioration of coverage indicators, delay in recovering advances from the related parties, further delays in redemption of the preferred stock of ~Rs 54 crore and weakening of liquidity position, it added.