3,240 per cent returns: This multibagger small-cap company announces expansion plan to increase distillery capacity to 850 KLPD; aims for Rs 550 crore revenue!
The stock is up by 60 per cent year to date and over 950 per cent in 3 years.
BCL Industries Ltd has plans to take up the total group distillery capacity to 850 KLPD over the next two years. Details below:
West Bengal Expansion: To capitalize on the ENA supply-demand deficit scenario of North-Eastern India, BCL installed a 200 KLPD state-of-the-art ENA plant at Kharagpur, under its subsidiary Svaksha Distillery Limited. After stabilizing the operations of Phase 1, the Company started Phase 2 wherein the additional capacity of 100 KLPD is being installed. The company has received the necessary clearances for expansion and has placed all major machinery orders. The company expects to commission this expansion by Dec 23 with a project cost of around 90 crore.
Bathinda Expansion: The company commissioned its 200 KLPD ethanol dedicated plant in July at Bathinda. The total cost of the project was around Rs 205 crores and should give the company revenues of around Rs 550 crore per annum moving forward. To hedge against the rising fuel costs, the company commissioned a boiler fired on paddy straw along with its 200 KLPD ethanol plant at Bathinda. This will help the company in diversifying its fuel needs as paddy straw is one of the toughest biomass to utilize and hence very few buyers for paddy straw. This boiler qualifies for the state government scheme in which SGST on the capex of the boiler will be refunded. The capex on this boiler was around Rs 40 crore.
Commenting on the expansion, Managing Director, Mr Rajinder Mittal said: “We are extremely delighted to announce the commissioning of our brownfield expansion at Bhatinda. This expansion has propelled BCL to become one of the largest grain-based distilleries in India. We are committed and proud to be a part of promoting the government’s initiatives on Bio-Fuels in India.”
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BCL Industries Ltd Limited is a part of the Mittal group with a market cap of Rs 1,200 crore. The company is in the edible oil and distillery business in India and in its Quarterly Results and annual results it reported positive numbers.
On Thursday, shares of BCL Industries Ltd surged 0.61 per cent to Rs 495.80 per share with an intraday high of Rs 502 and an intraday low of Rs 488.85.
The shares of the company have a PE of 17.73x whereas the sectoral PE is 36x with a ROE of 19 per cent. The stock is up by 60 per cent year to date and over 950 per cent in 3 years. Furthermore, over the course of a decade, the stock yielded remarkable returns of 3,240 per cent to its investors. Investors should keep an eye on this Small-Cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.