Multibagger stock: BCL Industries shares are one of the multibagger stocks that Indian stock market has produced in recent years, especially in post-Covid rebound. This multibagger stock has risen from around ₹50 to ₹500 apiece levels in last three years, delivering a whopping 900 per cent return to its positional shareholders in post-Covid stock market rebound. However, it seems that the stock still has some steam left.
BCL Industries share price today opened with an upside gap and went on to hit an intraday high of ₹502 per share on NSE, which is around 6 per cent away from its current life-time high of ₹536.35 apiece.
The multibagger stock has recently announced expansion plans. As per its latest Indian stock market exchange filing, the leading distillery industry player in India has said that the group has plans to take up the overall production capacity to 850 KLPD in next two years amid rising demand.
"To capitalize on the ENA supply demand deficit scenario of North-Eastern India, BCL installed 200 KLPD state-of the-art ENA plant at Kharagpur, under its subsidiary M/s. Svaksha Distillery Limited. After stabilizing the operations of phase 1, Company started phase 2 wherein additional capacity of 100 KLPD is being installed. The company has received the necessary clearances for expansion and has placed all major machinery orders. The company expects to commission this expansion by Dec 23 with a project cost of around ₹90 crore," the company said.
The company commissioned its 200 KLPD ethanol dedicated plant in July at Bathinda. The total cost of the project was around INR 205 Crores and should give the company revenues of around INR 550 Crores per annum moving forward. To hedge against the rising fuel costs, the company commissioned a boiler fired on paddy straw along with its 200 KLPD ethanol plant at Bathinda. This will help the company in diversifying its fuel needs as paddy straw is one of the toughest biomass to utilize and hence very few buyers for paddy straw. This boiler qualifies for the state government scheme in which SGST on the capex of boiler will be refunded. The capex on this boiler was around ₹40 Crores.
With the company’s state of the art fully integrated, multi-feedstock and modern plants located at Punjab and West Bengal, BCL has an installed capacity of 600 kilo litres per day (KLPD) with expansion plans up to 850 KLPD. The distillery segment has best in class machineries and state of the art infrastructure which makes it a zero discharge and energy efficient sustainable business model, setting an example for efficient water management and effluent management processes.
The Company can run its units on multiple raw materials like rice, maize, millets depending upon the availability of the same. The plant setup has been done in a way that the production of ENA and Ethanol can be controlled as per the requirement and the switch from ENA to Ethanol and vice versa can be done in no time which is an USP of BCL, which most of the distillers in the country do not have presently. Both Distilleries of the Company have ample land bank, steam and power for future expansion requirements whenever the Company decides to do so. Considering the Govt. of India Policy to go for higher mixing of ethanol in Petrol, the expansion opportunity for the Company is huge in the ethanol production sector.
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