Multibagger penny stock under Rs 65: This small-cap ethanol company bags a new order worth Rs 561 crore from Reliance Industries and OMCs!

Shares of the company gained more than 30 per cent in the six months.

North Indian agro-processing leader BCL Industries is enjoying a double boost, thanks to lucrative ethanol contracts and strong Q2 performance. The company secured deals worth Rs. 561 crores to supply ethanol to Oil Marketing Companies and RIL, solidifying its position in the expanding market.

BCL's Q2FY24 results further bolstered its position, with a 6.22 per cent revenue increase to Rs. 480.71 crore and a staggering 2,399 per cent jump in net profit to Rs. 19.67 crore. This underscores the company's operational strength.

To further solidify its commitment to ethanol, BCL commissioned a new 200 KLPD ethanol plant in Bhatinda, investing Rs. 205 crores. Additionally, the company is expanding its Svaksha Distillery Limited by 100 KLPD, with clearances and machinery orders already secured.

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Beyond ethanol, the rising demand for country liquor brands in Punjab is poised to fuel BCL's distillery business. Moreover, its diverse portfolio encompassing edible oils, rice milling, and real estate provides multiple growth avenues.

BCL Industries Limited has also delivered multibagger returns to its shareholders in the last three years. During this period, the company’s share price jumped from Rs 8.11 on December 11, 2020, to Rs 61.41 on December 05, 2023, an increase of more than 650 per cent in a three-year holding period.

With its recent successes and strategic positioning, BCL Industries is well-equipped to capitalize on the growing demand for grain-based ENA and ethanol, painting a bright picture for its future.

Investors should keep a close eye on this stock.

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