Archive · 7 Dec 2025
BEW Engineering Expands Capacity Amid Market Undervaluation
BEW Engineering makes special machines for medicine and chemical companies.
They are expanding their factory, which will let them make almost twice as much stuff.
The company's stock has gone down a lot, but the business is doing okay.
They make good money from machines called filter dryers, which are important and hard to replace.
The company is careful with money and has some big customers who keep coming back.
The stock is cheap right now, but it could go up if the expansion works well and they manage their money better.
BEW Engineering is expanding its capacity, expected to nearly double, with revenue projected to rise from Rs 134 crore in FY25 to Rs 175 crore in FY26.
The company specializes in high-margin products like filter dryers, which account for 70% of its order book and have high switching costs for clients.
BEW's stock has underperformed, down 14% over three years and 59% over the past year, despite steady business growth.
The company's balance sheet is cautious, with modest debt and a plan to reduce borrowings, but it faces challenges with a long cash conversion cycle.
BEW trades at a significant discount to its historical valuation, with a current PE ratio of 12x, reflecting market hesitation and SME stock risks.
- Who
- BEW Engineering, a manufacturer of dryers, filter dryers, mixers, and reactors for pharmaceutical and specialty chemical clients.
- What
- BEW Engineering is expanding its capacity, which is expected to double, and is currently trading at a significant discount to its historical valuation.
- When
- The expansion is nearly complete, with expected revenue growth to Rs 175 crore in FY26 and potential for Rs 300 crore within two to three years.
- Where
- The company operates in India, with a growing export presence in the United States, Japan, and Africa.
- Why
- The expansion is driven by high capacity utilization and a strong order book, with a focus on high-margin products like filter dryers.
- Revenue (FY25)
- Rs 134.36 crore
- EBITDA (FY25)
- Rs 20.40 crore
- EBITDA Margin (FY25)
- 15.18%
- Profit After Tax (FY25)
- Rs 12.16 crore
- Expected Revenue (FY26)
- Rs 175 crore
- Order Book (Current)
- Rs 80 crore
- Expected Order Book (FY26)
- Rs 150 crore
- Stock Price Change (3 Years)
- -14%
- Stock Price Change (1 Year)
- -59%
- Current PE Ratio
- 12x