BCL Industries Ltd. Stock Research

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BCL Industries Ltd.  Detail

BCL Industries Ltd.  is in portfolio of Subramanian P. He is one of the top investors in India. It is a Food Processing sector company. The business area of the Company is divided into below divisions

  • Edible Oil
  • Basmati Rice
  • Rice Bran Refined Oil
  • Vanaspati Ghee
  • Liquor

Below are some of the Brands from the Company. You may associate the Company by brand name perhaps.

  • Edible Oil – Home Cook (Soybean, Cotton Seed, Palm) , Murli (Mustard Oil)
  • Basmati Rice – Home Cook and White Gold
  • Rice Bran Refined Oil – Home Cook
  • Vanaspati Ghee – Home Cook and Do Khajoor
  • Liquor – Asli Shantra, Punjab Special, Red Royal, Summer Chef

As per the Company website it has taken up the expansion plan of Distillery – Ethanol Domain for a new state of the art plant of 200 KLPD with 8.0 MW co-generation Power Plant at Kharagpur, West Bengal. The new plant is expected to commission in the FY 2018-19 and should put the Group as the No 1 Grain based ENA – Ethanol manufacturer in the country.

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Now lets look at performance of this company over the years.As per Dow theory of technical analysis price performance over a period of time reflects Company state.

BCL Industries Ltd. Stock Performance

BCL Industries limited Stock Performance 2018
BCL Industries limited Stock Performance 2018

BCL Industries limited stock price chart is an impressive one. The Company was trading at price of 3 INR in year 2002. If you see the long term chart shown above it has moved up gradually every year.

It moved from 3 to 50 mark in slow and gradual manner from year 2002 to year 2016.There were few spikes but fall there after. But none of them were too alarming. With in last two years the stock moved from 50 mark to 150+ marks and cooled to some extend thereafter.

The Company pays healthy dividend of close to .5%. At current market price the dividend yield is close to 1%. So if you take current price in to account then company has given 30 times return in these 16 years with consistent dividend as well.

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So based on past performance Company looks attractive. If it can perform as per past performance then it will be a multi bagger and good stock to put money in.

BCL Industries Ltd. My Opinion

BCL Industries operate into multiple sector. The Vanaspati and Oil sector are the main business vertical for the Company. It has also forayed into Distillery business as well. Both the sectors fall under Consumption theme.

Most of the analyst are very positive on both of these sectors. Distillery is an ever green sector but faces problems with Liquor ban initiatives by many Government. Apart from Ban issues the sector is mostly insulated.

The Oil sector does not have this limitation also. Consumption of edible oil is on rise and will continue to do so with increase in population and income. It is one of the mandatory items in food preparation. The unorganized sector is giving way to organized sector in both Urban and Rural areas.

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BCL Industries is operating in growth sectors. The Company has come out strong during initial challenges. That will help it perform in near future as well. It will be interesting to see how well company moves ahead tackling competition with other dedicated players in these sectors.

I have added this Company to my stock watchlist.You can track the company by adding it to your stock watch list. That way you can keep close eye on the Company.

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