Multibagger stock BCL Industries jumps 1100% in three years. InCred sees more upside

Multibagger stock: BCL Industries shares are one of the multibagger stocks that Indian stock market has delivered in recent post-Covid rebound. Shares of this multibagger small-cap company which deals in FMCG, real estate and chemical segment has risen from around ₹40 to ₹490 apiece levels on NSE in stock market rebound after the Covid-19 sell off, delivering more than 1100 per cent return to its positional shareholders.

However, InCred Equities sees more upside in the stock. the brokerage has recommended stock market investors to add this stock in one's portfolio for long term target of ₹925 per equity share. BCL Industries share price today is ₹490 per share, which means the brokerage believes that the multibagger stock still has potential to deliver more than 85 per cent return to its investors.

On why you should add this small-cap stock in your portfolio, InCred Equities listed out the following four factors mentioned below:

1] The company’s new plant in West Bengal has commenced production.

2] Strong tailwind in ENA business to aid growth in volume as well as value terms.

3] Ethanol plant, with a capacity of 200klpd in Punjab, is just one quarter away.

4] The recent downturn in its share price could be attributed to a lower-than-expected increase in ethanol prices, dampening the sector’s prospects.

However, the company remains on a firm footing with its huge capacity coming on stream.

"The company moving from 200klpd to 600klpd in terms of ethanol/ENA capacity, respectively, in the current financial year," the brokerage said.

BCL Industries share price target

On suggestion to stock market investors in regard to BCL Industries shares, InCred Equities said, "Current valuation: 6.9x FY25F P/E - target price of Rs.925 with an ADD rating; Bull-case scenario target price – Rs.925; Bear-case scenario target price – Rs.660."

BCL Industries shares are available for trade on both BSE and NSE. Its market cap is ₹1,225 crore and its current trade volume is 1,17,680 and around half an hour of trade is still left in Monday session. The 52-week high of this multibagger stock is ₹536.35 apiece whereas its 52-week low is 276.15 per share.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decision.