Multibagger stock: Brokerage sees more heat in ethanol maker BCL Industries shares after 900% rally in 3 years
Shares of BCL Industries, an ethanol maker and an FMCG company in the country, are among the biggest gainers on Dalal Street in the past few years. According to exchange data, BCL Industries shares have delivered multibagger returns to its investors in the long run.
According to the BSE website, BCL shares have yielded a positive return of 50 per cent on a YTD basis as against a 10 per cent rise in the benchmark Sensex and a 16 per cent increase in the S&P BSE Fast Moving Consumer Goods index.
In the past two years, the small-cap stock having a market capitalisation of Rs 1,177.55 crore had turned multibagger, yielding a huge return of 117 per cent. In three years, the stock has rallied an astonishing 920 per cent, according to BSE data.
Meanwhile, domestic brokerage firm InCred Equities has recommended an 'Add' rating on BCL Industries shares. It said that BCL shares target price comes out to be Rs 925.
It means that the S&P BSE SmallCap stock has the potential to yield a return of more than 100 per cent to its investors from the current market price of Rs 485.
Last month, Kushal Mittal, joint MD of BCL Industries, in an exclusive interview with Zee Business said that the existing ethanol plant in Bhatinda is functioning on 100 per cent capacity utilisation. Also, the plant in Kharagpur in West Bengal is achieving good capacity utilization which will contribute to the topline.
He had also welcomed the government's decision to increase ethanol prices twice, and said "it is a welcome move as it will help the distilleries to keep with the momentum".
The government has set a target of 12 per cent blending of ethanol with petrol for the 2022-23 ethanol supply year, ending November. besides, it has advanced the target to achieve 20 per cent ethanol blending in petrol from 2030 to 2025-26.
Incorporated in 1976, BCL Industries is a part of the Mittal group. It is the largest grain-based manufacturer of Extra Neutral Alcohol (ENA) and ethanol in the country. It is also engaged in the agro-processing industry for more than four decades.
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