Multibagger penny stock below Rs 80 & FIIs increase stake: Shares of this small-cap company gained over 10 per cent on conversion of warrants into equity shares!

The stock gave multibagger returns of over 100 per cent in just 1 year, 850 per cent in 3 years and a whopping 5,000 per cent in a decade.

Today, one of the Top Gainers on BSE, shares of BCL Industries Ltd gained 11.2 per cent to Rs 79.14 per share from its previous closing of Rs 71.17 per share. The stock also made a new 52-week high of Rs 79.14 per share.
This announcement follows the earlier notice about issuing warrants convertible into equity shares. The company completed a stock split, making each warrant holder eligible for 10 shares instead of one upon conversion. Additionally, the board approved the conversion of 10,15,000 warrants into fully paid-up equity shares at Rs 36 each, resulting in a capital increase.

This leaves 28,31,334 warrants pending conversion, with holders having 18 months to pay the remaining 75 per cent and receive their shares. The company's issued, subscribed, and paid-up equity share capital now stands at Rs 26,78,50,000, consisting of 26,78,50,000 fully paid-up equity shares of Rs 1 each. These new shares rank equally with existing ones.

Elara India Opportunities Fund was allocated 95,00,000 warrants aggregating to Rs 25,65,00,000 and Vespera Fund Limited was allocated 6,50,000 warrants aggregating to Rs 1,75,50,000.

Earlier, the company along with its subsidiary Svaksha Distillery Limited received orders for the supply of ethanol to Oil Marketing Companies (OMCs) for a total of 8.20 crore litre worth Rs 561 crore. These orders are from Bharat Petroleum Corporation Limited (BPCL), Indian Oil Corporation Limited (IOCL), Hindustan Petroleum Corporation Limited (HPCL) and Reliance Industries Limited (RIL).

According to Quarterly Results, the net sales increased by 6.2 per cent to Rs 480.71 crore and operating profit increased by 467.65 per cent to Rs 48.9 crore in Q2FY24 compared to Q2FY23. The company reported a net profit of Rs 19.67 crore in Q2FY24 compared to Rs 0.82 crore in Q2FY23, an increase of 2,499 per cent.

Half-yearly Results: The net sales increased by 9.7 per cent to Rs 909.38 crore, operating profit increased by 124.3 per cent to Rs 90.16 crore and net profit increased by 132.8 per cent to Rs 39.42 crore in H1FY24 compared to H1FY23

BCL Industries Ltd Limited is a part of the Mittal group with a market cap of over Rs 1,900 crore. In September 2023, FIIs bought 4,21,073 shares or 1.66 per cent stake of this multibagger stock.

The shares of the company have a PE of 2.35x whereas the sectoral PE is 36.7x with a ROE of 15 per cent. The stock gave multibagger returns of over 100 per cent in just 1 year, 850 per cent in 3 years and a whopping 5,000 per cent in a decade. Investors should keep an eye on this Small-Cap stock.

Disclaimer: The article is for informational purposes only and not investment advice.