BCLIND is good for Medium to Long Term

2021年8月10日

BLC Industries Ltd.

About
- 44-year-old company engaged in Edible Oil & other related business.
- is one of the largest edible oil complex in North India.
- 8 brands in the edible oil business.
- Largest Grain-based Ethanol supplier in India.
- Consistently generating profitability without any CAPEX.
- Co. also manufactures refineries & machinery along with their business in real estate.
- The Ethanol story & Edible oil story both will be contributing to the growth of the business.
- 5 Year Sales Growth CAGR is 22%
- 5 Year Profit Growth CAGR is 50%

Prospects:
- Govt. has announced that it is planning to incorporate Ethanol in Petrol by 20% by 2023.
- Govt. has recently announced that it will invest around 11k crore in Edible Oil Ecosystem to boost domestic production & cut imports.
Both these will have a positive impact on the company in the coming years.

Insider Buying:
The Board of Directors of BCL Industries Ltd at its meeting held on the 03rd day of August, 2020, has approved the allotment of 50 lakh equity shares at a price of Rs. 60/- per share (including a premium of Rs . 50/- per share), on a preferential basis to 3 specified persons of Promoter Group (i.e. Mrs. Sunita Mittal, Mr. Rajinder Mittal, and Mr. Kushal Mittal) and one specified entity belonging to public category i.e. Rollon Investments Private Limited.

The number of shares allotted to the allottees:

Mrs. Sunita Mittal - 800000 shares (Promoter)
Mr. Rajinder Mittal - 800000 shares (Promoter)
Mr. Kushal Mittal - 1000000 shares (Promoter)
Rollon Investments Private Limited - 2400000 shares (public)

View:
- BCLIND is a relatively small fish in a big pond. It has much room to grow. With consistently good Sales growth & Profit Growth & upcoming sectoral tailwinds, the company should do well.