Post-Split Boom: Multibagger penny stock jumps over 3 per cent on 5,00,000 share allocation & FIIs stake hike; PAT zooms 2,499 per cent!

The stock gave multibagger returns of over 100 per cent year to date, 800 per cent in 3 years and a whopping 4,600 per cent in a decade.

Today, shares of BCL Industries Ltd gained 3.53 per cent to Rs 66.30 per share from its previous closing of Rs 64.04 per share.

The sudden rise in the stock price was due to the company's previously issued warrants which could be converted into equity shares. After a stock split, they're adjusting the conversion terms: 50,000 warrants will be converted into 5,00,000 shares, and remaining warrant holders can still convert by paying the remaining 75 per cent of the price by a certain date. This increases the company's share capital and the new shares have equal rights as existing ones.

Two major FIIs, Elara India Opportunities Fund and Vespera Fund Limited, pumped in a combined sum of Rs 27.4 crore through warrant allocations. Elara received 95 lakh warrants (worth Rs 25.65 crore) while Vespera got 6.5 lakh warrants (worth Rs 1.75 crore).

In a major boost, earlier the company and its subsidiary Svaksha Distillery Limited secured ethanol supply contracts worth Rs 561 crore from leading Oil Marketing Companies (OMCs) - BPCL, IOCL, HPCL, and RIL. The total volume committed amounts to a staggering 8.20 crore litres.

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 1,686 crore. In September 2023, FIIs bought 4,21,073 shares or 1.66 per cent stake in this multibagger stock and in the upcoming quarter, the FIIs stake percentage will be increasing.

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 year to date, 800 per cent in 3 years and a whopping 4,600 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.