BCL Industries shares hit new highs as it bags ethanol orders from OMCs

Shares of BCL Industries Ltd extended its gains on Tuesday to hit new highs as the company announced the revised order win list from oil marketing companies (OMCs) during Ethanol Supply Year (ESY) 2023-24.

As per the revised filing with the bourses, BCL Industries and its subsidiary Svaksha Distillery have cumulatively bagged orders worth Rs 567.4 crore for the year starting November 1, 2023 to October 31, 2024. Both the entities will aggregately supply 82,902 kilolitres (KL) of ethanol during the given year.

BCL Industries will supply a total of 49,502 KL ethanol amounting to Rs 339.07 crore. Out of this, Hindustan Petroleum Corporation (24,285 KL ethanol worth Rs 166.27 crore), Indian Oil Corporation (16,273 KL ethanol worth Rs 111.49 crore) and Bharat Petroleum Corporation (8,944 KL of ethanol worth Rs 61.31 crore) during the given year.

Svaksha Distillery will supply a total of 33,400 KL ethanol worth Rs 228.33 crore during the given year. It has bagged orders from Indian Oil Corporation (16,419 KL ethanol worth Rs 112.31 crore), Bharat Petroleum Corporation (9,331 KL of ethanol worth Rs 63.79 crore), Hindustan Petroleum Corporation (6,650 KL ethanol worth Rs 45.50 crore) and Reliance Industries (1,000 KL of ethanol worth Rs 6.73 crore).

Following the update, shares of BCL Industries surged another 5 per cent to Rs 62.39 on Tuesday, hitting its new 52-week high, with a total market capitalization of more than Rs 1,550 crore. The scrip had settled at Rs 59.39 apiece in the previous trading session on Monday.

Shares of BCL Industries have gained about 120 per cent from its 52-week lows at Rs 28.60 hit on December 23, 2023, while the stock is up 25 per cent in the last one-month period. The stock has gained about 90 per cent in the last one month, while it is up 60 per cent in the last one-year period.

BCL Industries returned to black in the quarter ended September 30, 2023 as it posted a consolidated net profit of Rs 19.67 crore, compared to a net loss of Rs 81 lakh in the year-ago period. Its total income Q2FY24 grew 6 per cent YoY to Rs 482.72 crore from Rs 455.24 crore in the same quarter a year ago.

Also read: Stock recommendations by market analysts for December 5, 2023: ICICI Bank, Minda Corporation and Atul

Shares of BCL Industries traded ex-split in a 1:10 ratio earlier this year, in October 2023. BCL Industries is the only company in India and in the South Asian region to have a forward and backward integrated ethanol plant.

Also read: Vedanta, IRCTC, Zomato, AEL, Bandhan Bank: Half of largecap shares nowhere near record highs