Rs 150 Crore Investment Project: Multibagger Ethanol Stock Under Rs 60 In Focus As Company Updates On Plant Expansions
The stock gave multibagger returns of 590 per cent in 5 years and a whopping 1,300 per cent in a decade.
On Tuesday, shares of BCL Industries Ltd jumped 3.15 per cent to Rs 54.75 per share from its previous closing of Rs 53.08 per share. The stock’s 52-week high is Rs 86.25 per cent while its 52-week low is Rs 46 per share. The shares of the company saw a spurt in volume by more than 2 times on BSE.
BCL Industries Limited, through its subsidiary Svaksha Distillery Limited, has received approval to establish a 75 KLPD Bio-Diesel plant alongside an oil extraction plant at its Kharagpur unit, with an estimated project cost of Rs 150 crore. Concurrently, the Company has secured environmental clearance (EC) for another 150 KLPD ethanol manufacturing plant at its Bathinda distillery, with construction slated to commence soon. Furthermore, the 75 KLPD Bio-Diesel plant at the Bathinda distillery is currently under active construction, with significant progress being made on-site.
Earlier, the company secured a significant order from Rajasthan State Ganganagar Sugar Mills Limited to supply 60 lakh litres of Extra Neutral Alcohol (ENA) from its Bathinda distillery over six months, starting from November 26, 2024, with a potential 50 per cent increase at the buyer's option. This contract builds upon a previous order for 53 lakh litres in February 2024, with BCL Industries expecting to have supplied approximately 80 lakh litres to the same buyer by November 30, 2024. Additionally, BCL Industries and its subsidiary, Svaksha Distillery Limited, have been allocated 18.25 crore litres of ethanol for the Ethanol Supply Year (ESY) 24-25 under the Ethanol Blended Petrol Programme (EBP), a 17 per cent increase from the 16.94 crore litres allocated in ESY 23-24, driven by Svaksha Distillery's added 100 KLPD capacity.
DSIJ's ‘Penny Pick’ service provides research-backed penny stock recommendations below Rs. 100. If this interests you, do download the service details here.
BCL Industries Limited, a prominent agro-processing company established in 1976, operates across edible oils, rice milling, grain-based distilleries, and real estate in Punjab and West Bengal. A part of the esteemed Mittal Group, the company boasts a market capitalization of over Rs 1,700 crore. BCL Industries Limited's strategic expansion has yielded impressive results, with a new plant at the Bathinda unit doubling its ethanol production capacity and another new plant in Kharagpur, along with a subsidiary expansion, boosting the total capacity to an impressive 700 KLPD.
According to Quarterly Results, the net sales increased by 55.2 per cent to Rs 746.13 crore and net profit increased by 51.9 per cent to Rs 29.87 crore in Q2FY25 compared to Q2FY24. In its annual results, the net sales increased by 21 per cent to Rs 2,200.62 crore in FY24 compared to Rs 1,819.92 crore in FY23 while the net profit increased by 49 per cent to Rs 95.92 crore in FY24 compared to Rs 64.36 crore in FY23. Looking at its half-yearly results, the net sales increased by 54.5 per cent to Rs 1,404.64 crore and net profit increased by 38 per cent to Rs 54.38 crore in H1FY25 compared to H1FY24.
An ace investor, Sangeetha S own a 1.13 per cent stake in the company as of September 2024. The stock gave multibagger returns of 590 per cent in 5 years and a whopping 1,300 per cent in a decade.
Disclaimer: The article is for informational purposes only and not investment advice.