14.04.2019
BCL Industries (CMP 99.60)
Target - 190 - 225, SL - 83 Time Frame 12 to 36 Months
Established in 1976, BCL has business interests in solvent
extraction,edible oil and distillation with an annual turnover of more than
Rs.850 crore. BCL has gained a leadership position in the oil and rice
industry,especially in North India. Today,
Company own one of the largest vertically integrated agro-based
edible oil complexes established in India.Company sells its edible oil under various
brands and our flagship brands are Homecook, Do Khajoor and Murli. They also do
contract manufacturing of edible oil for companies like Cargill, Godrej Agrovet
Ltd, etc. Company diversified its core business by
partnering with Pioneer Industries Limited in 2006 to operate a
distillation plant manufacturing grain-based ENA/Ethanol alcohol. BCL emerged
as the only company to manufacture high quality wheat gluten. The business was
further expanded by setting up another state-of-the-art grain-based distillery
in the village of Sangat Kalan. In April 2017, the 100 KLPD capacity of this
plant was doubled to 200 KLPD and it is still operating at optimum utilisation
levels. Company has also diversified in real estate business and completed 2
real estate projects so far. The Company's equity is just Rs.17.43crore while
company has reserve of around Rs.157.24crore. Its share book value stood at
Rs.100.19 as at 31st December 2018. Promoters hold 60.24%, Ace investor Nikhil
Vora hold 1.24%, Subramanian P hold 2.10% while investing public hold 36.42%
stake in the company. During 9MFY19, its PAT zoomed 151% to Rs.34.4crore from
Rs.13.71crore in 9MFY18 on higher sales of Rs.648.28crore fetching an EPS of
Rs.19.76. Its 9MFY19 PAT is 93% higher than the PAT recorded for FY18. At CMP,
BCL trades at P/E ratio of just 5x.
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