The shares of this microcap company locked a 5 percent upper circuit in Tuesday’s trading session after its subsidiary started crude edible oil production at the 300 TPD plant in West Bengal. The stock has delivered around a 50 percent return to its shareholders in one year.
Price Movement:
With a market capitalization of Rs. 154 crores, the shares of BCPL Railway Infrastructure Ltd started Tuesday’s trading session on a higher note at Rs. 93.10 compared to its previous close of Rs. 90.72. During the trading session, the shares clocked a 5 percent upper circuit at Rs. 95 apiece.
What Happened:
Such a bullish movement in the share price was observed after the company in an exchange filing announced that its subsidiary company BCL Bio Energy, has commenced crude edible oil production at its new facility in Burdwan, West Bengal, with a capacity of 300 Tons Per Day (TPD).
The plant primarily produces Crude Rice Bran Oil and Crude Mustard Oil. These oils are derived from rice bran and mustard seeds, respectively, which are processed using advanced solvent extraction techniques.
Additionally, the facility will also produce De-oiled Rice Bran and De-oiled Mustard Cake, which serve as valuable by-products for animal feed and other applications and are exported to countries such as Bangladesh and Vietnam.
BCPL Railway Infrastructure holds a 51 percent stake in BCL Bio Energy Private Limited, and the operations of the subsidiary will contribute to BCPL’s consolidated financial performance.
By starting this production line, BCL Bio Energy aims to contribute to sustainability in the agricultural sector and plans to export the de-oiled cakes to various countries, thereby contributing to India’s foreign exchange earnings.
Financials:
Looking at the company’s financial performance, the revenue decreased by around 30 percent from Rs. 25.87 crores during the March quarter to Rs. 18.27 crores in the June quarter. Contrastingly, the net profits surged by 212 percent from Rs. 62 lakhs to Rs. 1.94 crores during the same timeframe.
Important Financial Ratios:
In terms of key financial metrics, the company reported a Return on Equity (RoE) of 6.10 percent and a return on capital employed (RoCE) of 8.49 percent for the period spanning FY23-24. Further, during the same period, the net profit margin stood at 6.09 percent.
Shareholding Pattern:
According to the latest shareholding pattern, the Promoters have a 72.87 stake in the company and the remaining 27.14 percent are with the Retail Investors.
Company Profile:
Headquartered in Kolkata, BCPL Railway Infrastructure Ltd was incorporated in 1995. The company is expertise in the field of railway infrastructure development. Its business activities include designing, erecting, drawing, supplying, and commissioning Single Phase Traction Overhead Equipment.
Written By Vaibhav Patil
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