Unveiling a Hidden Gem: Multibagger SME Stock with Rs 295 Crore Order Book!

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.

BEW Engineering Ltd has expanded its business into new areas and is getting new customers. It has completed work to increase its capacity and expects to make 40-50 per cent more money this year. They have orders worth Rs 295 crore that will be done in the next 7 months.  

The company has trade receivables of Rs 212.68 crore, which means customers owe them money for goods they've already delivered. Some of these trade receivables, Rs 28.5 crore, are from new export clients. However, the company has already received the money from these exports, so their trade receivables are currently zero.  

The company has borrowed Rs 210.93 crore, out of which Rs 78.1 crore was disbursed through a government scheme called ECLGS. This is a 5-year loan with a 2-year moratorium and an 8 per cent interest rate for working capital during the Covid period. They've used some of the borrowed money to buy inventory in advance so they can complete orders on time and plan for future revenue.  

The company has a team that designs equipment and has created two new products that only they sell, which should give them higher profits.  

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BEW Engineering Ltd is a leading designer and manufacturer of pharmaceutical & chemical plants and process equipment.   

On Friday, shares of BEW Engineering jumped 5.38 per cent to Rs 860 per share from its previous closing of Rs 816.10.   

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 22 per cent in 1 year and over 500 per cent in 3 years. Investors should keep an eye on this mulitbagger SME stock.