BCL Industries shares: After 16x rise from Covid lows, brokerage see up to 70% rise in the stock

Brokerages and analysts continue to remain positive in BCL Industries. Even after a stellar rise from its Covid-19 lows, the stock hogs positive reviews and outlook from select experts of the Dalal Street, who believe that stock may rally up to 70 per cent in the coming days.

BCL Industries is a fast-moving consumer goods (FMCG) major, engaged in manufacturing of vanaspati ghee, refined edible oils and other products. The smallcap company board had approved the sub-division of its equity shares in a 1:10 ratio, but the record date for the same has yet to be announced.

Shares of BCL Industries were trading about 2 per cent up to Rs 463 on Thursday, commanding a total market capitalization of around Rs 1,115 crore. The stock had settled at Rs 458.85 in the previous trading session.

Shares of BCL Industries have delivered multibagger returns to the investors. The stock has gained more than 1,550 per cent from its covid-19 lows around Rs 28, while the stock is up around 67 per cent from its 52-week lows at Rs 276.15 hit on November 15, 2022. The stock is up 42 per cent in the year 2023 so far.

Incred Equities expects that profitability higher than estimates. "The company delivered above our estimates, due to control of losses in the oil segment. The company is on a healthy run, however the FCI rice situation has to be understood," it said with an 'add' rating and a target price of Rs 790 on the stock.

July saw the commissioning of 200 KLPD ethanol plant and rice straw boiler in Punjab, the same will contribute to profitability going ahead. The company has re-entered the IMIL market in Punjab, we have not accounted for any contribution from the IMIL segment. The overall FCI rice issue needs to be understood to take a call on the RM for ethanol going ahead, InCred added.

BCL Industries reported a net profit at Rs 18.62 crore in June 2023 quarter, up about 5 per cent on a year-on-year (YoY) basis against a net profit of Rs 17.77 crore in the June 2022 quarter. The revenue rose 14.35 per cent YoY to Rs 428.67 crore in April-June 2023, compared to Rs. 374.88 crore in the year ago period.

Operational profit or EBITDA for BCL Industries came in at Rs 41.30 crore in June 2023 quarter, up 31 per cent from Rs. 31.59 crore in the same quarter previous year.

Commenting on BCL Industries, Kranthi Bathini from Wealthmills Securities said that next two-three quarters are likely to be challenging for the company but the stock has a potential to rise around 15-20 per cent from current levels. "Ethanol blending and spirit business will be the key for the company in the coming few quarters," he told Business Today.


(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Business Today)

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