Shares of BCL Industries Ltd were in the green on Tuesday’s trades and were trading near their 52-week high after the company announced a stock split. At 01:13 PM, its shares were trading at ₹ 520.85 apiece, up 2.43%.
In an exchange filing, the company announced that its board has approved the splitting of its shares in the ratio of 1:10. Therefore, each share with a face value of ₹ 10 will be divided into ten shares with a face value of ₹ 1, subject to the approval of its shareholders and other statutory approvals.
BCL Industries is primarily engaged in the edible oil and distillery business in India. Moreover, its real estate segment includes the construction of residential houses. The company has been growing under the guidance of Rajendra Mittal. In the past six months, its share price increased by 62.38 per cent from ₹ 319.65 to ₹ 519.05 apiece.
With a market capitalization of ₹ 1,233 crores, BCL Industries is a small-cap company. It has an ideal return on equity of 15.65% and an ideal debt-to-equity ratio of 0.91. Its shares were trading at a price-to-earnings ratio (P/E) of 18.54, which is lower than the industry P/E of 22.33, indicating that the stock might be undervalued as compared to its peers.
The company’s promoters hold a 61.36% stake in it followed by retail investors with 38.23% and foreign institutions with 0.41%.
BCL Industries reported a 24.51% increase in its net profit from ₹ 1.04 crores in FY22 to ₹ 1.29 crores in FY23. Its revenue from operations declined from ₹ 1993.07 crores in FY22 to ₹ 1,819.92 crores in FY23.
Written By Simran Bafna
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