BCL Industries: Strong ethanol contracts and Q2 growth fuel future; stock surges over 9%

BCL Industries, a North Indian agro-processing leader, is riding high on both ethanol contracts and Q2 performance. The company, known for its grain-based ethanol and ENA, secured lucrative ethanol supply deals with Oil Marketing Companies (OMCs) for 2023-24. These contracts, worth a combined Rs. 561 crore, solidify BCL’s position as a major player in this growing market.

Financial Performance

Adding to the momentum, BCL’s Q2FY24 saw a 6.22% revenue jump to Rs. 480.71 crore compared to the previous quarter. Net profit after tax surged a staggering 2,399% to Rs. 19.67 crore, highlighting the company’s operational strength. BCL’s recent commissioning of its 200 KLPD ethanol plant in Bhatinda, costing Rs. 205 crores, further cements its commitment to ethanol production expansion.

Additionally, the increasing demand for country liquor brands in Punjab is expected to further boost BCL Industries’ distillery business. The company’s ongoing work for a 100 KLPD ethanol expansion at Svaksha Distillery Limited, has secured clearances and machinery orders placed by the company.

With a diverse portfolio spanning edible oils, rice milling, and real estate, BCL Industries is strategically positioned to capitalize on multiple opportunities. Its recent successes in ethanol contracts and Q2 performance paint a bright picture for future growth. As one of the largest producers of grain-based ENA and ethanol in India, BCL Industries is well-positioned to capitalise on the growing demand for these products.

Stock Price Movement 

Today, the stock opened at Rs 54.56, with a high and low of Rs 60.25 and Rs 54.50, respectively. The stock is currently trading at Rs 59.29, which increased by 9.63%. The stock has a 52-week high of Rs 60.85 and a 52-week low of Rs 28.60. The company has an ROCE of 13.9% and an ROE of 16.1%, with a market capitalisation of Rs 1,486 crore.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.