This Smallcap company that deals in Rice Milling, Edible Oils, grain-based distilleries, and Real Estate with a presence in Punjab and West Bengal, surged upto 8 percent after receiving multiple orders worth ~Rs. 135 crores.
Price Movement
With a market capitalization of Rs. 1,102.44 Crores, the shares of BCL Industries closed at Rs. 37.35 on Wednesday which was up by 7.64 percent from the previous closing price of Rs. 34.70 per share. The stock has delivered a negative return of around 54 percent in the past year and has underperformed the Nifty Index.
What Happened?
The company’s stock surged after the company’s filing revealed BCL Industries along with its subsidiary Svaksha Distillery participated in a tender floated by Oil Marketing Companies (OMCs) in January 2025 for the ethanol supply across India.
Following the tender both have received orders namely BCL Industries with 14,302 KL of ethanol against FCI Rice Allocation of 31,750 MT as raw material with an order value of Rs. 83.67 crores.
Further, its subsidiary, Svaksha Distillery received 8,752 KL of ethanol with FCI Rice Allocation of 19,429 MT with an order value of Rs. 51.20 crore. Both the orders totaled Rs. 134.87 crores with 23,054KL of quantity.
The above order is an addition to the existing 1,82,485 KL order received in October 2024 month.
Q3FY25 Financials Overview
The company’s recent financial results reveal revenue from operations at Rs. 735 crores for Q3FY25, an increase of 18.16 percent year on year from Rs. 622 crores in Q3FY24. The Net profits declined by 36.36 percent from Rs. 33 crore in Q3FY24 to Rs. 21 crore in Q3FY25.
Capex Plans
BCL Industries plans to set up a 75 KLPD biodiesel plant in Bathinda to support complete vertical integration in the production of ethanol and is expected to be commissioned in the next three to four months and the cost is estimated to be Rs. 120 crores for this project. Recently, they have received approval to establish another 75 KLPD biodiesel plant in Kharagpur.
Business Mix
The company earns its operational revenue from Oil and Vanaspati which contributes around 31.73 percent, followed by 37.94 percent from Distillery, 0.56 percent from Real Estate, and 29.75 percent from a Subsidiary company at Kharagpur for the December 2024 quarter.
The Operating Profits from the Distillery contrbiutes the highest followed by the Kharagpur Subsidiary company, Oil and Vanaspati, and Real estate.
In the recent transcript, the company plans to exit the edible oil segment in a phased manner to improve profitability and focus on its operations. The exit is expected by Q1FY26. It can free upto Rs. 90 crore in working capital and can aid in reducing debt for the company.
Further, BCL plans to divest real estate inventory further benefitting the company to reduce the debt.
Company Overview
BCL Industries Limited was established in 1976 and is a diversified agro-processing company in India, and specializes in edible oils, grain-based distillery products, and real estate development, while primarily operating in Punjab and West Bengal.
Written by Santhosh
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