BCL Industries Touched Life-Time High After 1:10 Stock Split: Here’s What Driving The Stock

On Friday, the shares of BCL Industries opened on the BSE at Rs 55.73 apiece and reached a lifetime high of Rs 59.40 on the back of higher volumes. This FMCG stock had a post-Covid bounce, rising from levels of 6.53 per share to its current market price.

Over the previous three years, this stock has generated a multibagger return of more than 825%. The price of BCL Industries' shares climbed today on the NSE, opening at Rs 55.73 a share and reaching an intraday high of Rs 59.40 per share.

BCL Industries is among the multibagger stocks which have 26% CAGR in terms of revenue in 4 years, 30% EBITDA CAGR in 4 years whereas having recorded 7% EBITDA margin, 14% ROCE, 0.88x debt/equity ratio, 6.2x interest coverage in FY23.

In Q2FY24, the company reported revenue from operations of Rs 480.7 Cr, up by 6.2% YoY from Rs 452.6 Cr in Q2FY23. Its EBITDA stood at Rs 48.9 Cr in the quarter under review up by 468.1% YoY from Rs 8.6 Cr reported in the year-ago quarter whereas the EBITDA margin surged 820 bps to 10.1% from 1.9% in the corresponding quarter of the previous fiscal.

BCL Industries reported a net profit of Rs 19.7 Cr in Q2FY24 compared to a net loss of Rs -0.8 in Q2FY23. In their separate meetings on May 29, 2023, and September 26, 2023, the Board of Directors and Shareholders of the Company approved the sub-division of the existing 1 equity share with a face value of Rs. 10/-each into Ten equity shares with a face value of Re. 1/-each. The sub-division was duly completed on the record date (October 27, 2023) set for the same.

In 2023, the company aims to expand the Bathinda distillery to 400 KLPD + 12,000 MTPA Rice Straw Power Plant indicating having a strong legacy in terms of expansion and future growth.

The average cash flow from operations for the company from FY 2019-23 has been higher than Rs 50 Cr. As a result, BCL will have no trouble meeting its debt obligations, in the present and future as well.

With over 400 dealers dispersed throughout different parts of India, the company claims a strong dealer network for its edible oil brand business area. The firm distinguishes itself from its contemporaries by owning India's largest fully integrated vegetable oil plant.

With four decades of experience, BCL Industries is one of the largest agro-processing manufacturing enterprises in India, possessing a significant procurement understanding for grains. The corporation is divided into three main segments: real estate, edible oil and vanaspati, and distillery.