1,000 per cent returns: Multibagger small-cap company successfully commissions 200 KLPD ethanol expansion worth Rs 220 crore along with 10MW power plant!
Over the course of a decade, the stock yielded remarkable returns of 2,550 per cent to its investors.
BCL Industries Limited (BSE: 524332), has successfully commissioned a 200 KLPD Ethanol dedicated brownfield expansion at Bhatinda, Punjab, taking the plant’s distillery capacity to 400 KLPD at Bathinda. The company has also commissioned a 10 MW Power Plant that will run on paddy straw, for which the company has already sourced paddy straw stock required until December 2023, along with contracts for paddy straw already in place for the next year. The company expects this power plant to bring down the fuel cost for the distillery segment moving forward. The capex outlay for this expansion was Rs 220 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.”
BCL Industries Ltd Limited is a part of the Mittal group with a market cap of Rs 1,165 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.
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On Monday, shares of BCL Industries Ltd plunged 1.02 per cent to Rs 477.85 per share with an intraday high of Rs 497.70 and an intraday low of Rs 477.
The shares of the company have a PE of 16.17x whereas the sectoral PE is 35x with a ROE of 19 per cent. The stock is up by 55 per cent year to date and over 1,000 per cent in 3 years. Furthermore, over the course of a decade, the stock yielded remarkable returns of 2,550 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.