Small cap stock engaged in the business of Edible oil and vanaspati, distillery, and Real Estate in India jumped upto 3 percent in the day’s trade upon receiving consent to establish a biodiesel plant with an investment of Rs. 150 Crores.
Price Action
With a market capitalization of Rs. 1,550 Crores, the shares of BCL Industries Limited were trading at Rs. 52.50 per equity share, down 1 percent from its previous day’s close price of Rs. 53.08.
What Happened
BCL Industries Limited’s subsidiary Svaksha Distillery Limited in its normal course of business has received consent to establish a 75 KLPD Bio-Diesel plant along with an oil extraction plant at its Kharagpur unit with an estimated investment of Rs. 150 Crores.
It has also received environmental clearance (EC) to establish another 150 KLPD ethanol manufacturing plant at its Bathinda distillery, work for which will begin in the coming months. Additionally, the work on the 75 KLPD Bio-Diesel plant at Bathinda Distillery is going in full swing.
About the Company
BCL Industries Limited is mainly engaged in the business of Edible oil and vanaspati, distillery, and Real Estate in India. Its Oil and Vanaspati Segment Consists of vanaspati, refined oil, extraction of oil & solvents from seeds.
Its Distillery segment consists of the production and marketing of liquor and the processing of ethanol. The Real Estate Segment consists of the construction of residential houses.
Outlook & Plans
The company expects full capacity utilization of its 700 KLPD distillery in FY 24-25 and expected revenue is ~ Rs1,750 crores from distillery operations. It is also targeting to commission a 75 KLPD Biodiesel plant within 12 Months.
Revenue Breakup
Coming to the revenue breakup of BCL Industries Limited, it generated 75 percent of its revenue from Ethanol, Extra Neutral Alcohol 8 percent, Punjab Medium Liquor 8 percent, Distiller’s dried grains with solubles 6 percent and others 3 percent.
Financials & Ratios
Its revenue from operations grew by 50 percent from Rs. 483 Crores in Q2FY24 to Rs. 724 Crores in Q2FY25, accompanied by profits of Rs. 17.96 Crores to Rs. 27.65 Crores.
In terms of Return ratios, it has reported a return on equity (ROE) of 13.74 percent, and a return on capital employed (ROCE) of 15.79 percent. It has reported a debt-to-equity ratio of 0.5.
Written by: Bharath K.S
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