• Sat. Jun 22nd, 2024

BCL Industries, A Multibagger Stock, Is Getting Close To Reaching A Record High.

ByNishat Manzar

Sep 7, 2023
share market

Multibagger stock: BCL Industries shares rose to an intraday high of 502 today, which is just 6% below their all-time high of 534.50 per share.

BCL Industries stock is one of the multibagger stocks the Indian stock market has produced recently, particularly during the post-Covid recovery. In the past three years, this multibagger stock has increased from about $50 to $500 per share, giving positional shareholders a whopping 900 percent return during the post-Covid stock market recovery. It appears that the stock still has some steam, though.

Today’s BCL Industries share price began with an upward gap and reached an intraday high of 502 on the NSE, which is about 6% below its current lifetime high of 536.35 per share.

News about BCL Industries

The multibagger stock recently disclosed growth objectives. According to its most recent filing with the Indian stock exchange, the country’s largest distillery company stated that it has plans to increase its overall production capacity to 850 KLPD over the next two years in response to growing demand.

West Bengal enlargement

By installing a 200 KLPD state-of-the-art ENA plant at Kharagpur under its subsidiary M/s. Svaksha Distillery Limited, BCL was able to take advantage of the ENA supply demand deficit scenario in North-Eastern India. After achieving operational stability in phase 1, the company began phase 2, during which additional capacity of 100 KLPD was installed. The business has placed all significant machinery orders and received all necessary approvals for growth. The project cost for this expansion is expected to be around 90 crore, and the company expects to commission it by December 23.

Bathinda growth

In July, the company opened its 200 KLPD ethanol-specific plant in Bathinda. The project cost approximately INR 205 Crores in total, and it is anticipated that moving forward, it will generate INR 550 Crores in revenue for the company. Along with its 200 KLPD ethanol plant at Bathinda, the company put into service a boiler fired on paddy straw as insurance against rising fuel costs. As paddy straw is one of the most difficult types of biomass to use and has a limited market, this will aid the company in diversifying its fuel requirements. This boiler is eligible for the state government’s program that will refund the SGST paid on the boiler’s capital expenditures. 

This boiler’s capital expenditure was close to 40 crores.

BCL has modern, multi-feedstock, fully integrated plants in West Bengal and Punjab with an installed capacity of 600 kilo litres per day (KLPD) and expansion plans for up to 850 KLPD. The distillery segment sets an example for effective water management and effluent management processes thanks to best-in-class equipment and cutting-edge infrastructure, making it a zero discharge and energy efficient sustainable business model.

Depending on the availability of the raw materials, the company can operate its units using a variety of raw materials, including rice, maize, and millets. A USP of BCL, which the majority of the distillers in the nation currently lack, is the ability to quickly switch from ENA to Ethanol and vice versa. This is made possible by the way the plant has been set up so that production of ENA and Ethanol can be controlled as needed. Whenever the Company decides to do so, both of the Company’s distilleries have enough land, steam, and power to meet future expansion requirements. Given the Government of India’s policy to increase the amount of ethanol that is mixed with gasoline, there is a tremendous opportunity for the Company to expand in the ethanol production sector.