FIIs bought 4,21,073 shares of this multibagger penny stock under Rs 60; Company reports a 2,499 per cent jump in net profit!
The stock is up by 68 per cent in just 1 year and gave multibagger returns of over 700 per cent in 3 years.
BCL Industries Ltd (BCL) announced its Quarterly Results (Q2FY24) and half-yearly results (H1FY24) for the fiscal year 2024. Here are the details:
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.
Earlier, BCL Industries Ltd. (BCL) announced that it is reducing its focus on the edible oil business segment due to significant volatility and depressed margins. The company will terminate the lease for the Jalalabad unit and shut down the Bathinda edible oil unit. A portion of the Bathinda edible oil business will be shifted to the Bathinda distillery complex. BCL has also applied for environmental clearance for a 150 KLPD ethanol expansion at the Bathinda distillery site. The company expects a significant reduction in its overheads with this development and will also be able to monetise the Bathinda edible oil unit land in the near future.
The edible oil business contributes 43.7 per cent revenue and 10.9 per cent to EBITDA, suggesting that it is not a major contributor to profits. The edible oil business also has a significant working capital requirement, which is expected to decrease with the change in business model. This strategic decision is expected to improve management bandwidth and increase focus on the high-margin distillery segment, where the company is experiencing strong growth.
BCL Industries Ltd Limited is a part of the Mittal group with a market cap of over Rs 1,300 crore. On Today, shares of BCL Industries Ltd gained 0.93 per cent to Rs 52.15 per share with an intraday high of Rs 54.90 and an intraday low of Rs 50.1. In the September 2023, FIIs bought 4,21,073 shares or 1.66 per cent stake of this multibagger stock.
The shares of the company have a PE of 15.6x whereas the sectoral PE is 47.4x with a ROE of 18 per cent. The stock is up by 68 per cent in just 1 year and gave multibagger returns of over 700 per cent in 3 years. Furthermore, over the course of a decade, the stock yielded remarkable returns of 3,260 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.
DSIJ's ‘Penny Pick’ service provides research-backed penny stock recommendations below Rs. 100. If this interests you, do download the service details here.