BCL shares: After 1,700% rise from Covid-19 lows, InCred see more upside in the multibagger stock

BCL Industries continues to be in the preferred stocks of InCred Equites from the green ethanol story. BCL Industries has delivered a strong performance in the last few years and analysts at InCred Equities see more steam left in the counter 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.

Shares of BCL Industries have delivered multibagger returns to the investors. The stock has gained more than 1,700 per cent from its covid-19 lows around Rs 28, which the stock is up around 85 per cent from its 52-week lows at Rs 276.15 hit on November 15, 2022. The stock is up 55 per cent in the year 2023 so far.

"We are positive on the green ethanol story but not very much confident about the sugar side of the stock," said Nitin Awasthi, Research Analyst at InCred Equities. "BCL Industries is among our top picks from this space as we see it at the forefront of the segment."

Awasthi also swears by the unique backward integration of the company, which supports its strong margins. "Going forward, developments around paddy straw power plant development will be key to watch as it will further support the margins of the company," he added.

According to the market analysts, BCL Industries will reap benefits from the commencement of its new production plant in West Bengal and the ethanol plant, with a capacity of 200 kilo litres per day in Punjab. BCL Industries is a part of the Mittal Group engaged in diversified businesses.

Shares of BCL Industries were trading around Rs 500 on Monday, down 2 per cent, after giving up its early gains. The company was commanding a total market capitalization close to Rs 1,210 crore during the trading session. The script had settled at Rs 508.40 on Friday.

Awasthi told Business Today that current price target is based on FY24 earnings and one need to adjust them accordingly after the stock-split of equity shares in implemented, he said with an 'add' rating and a target price of Rs 790 on the stock in bull case scenario, suggesting an upside of 55 per cent from the current levels. Bear case target price continues to be at Rs 656 apiece.

(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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