Bhatinda Chemicals Limited Industries, commonly known as BCL Industries, was listed on the NSE on March 4, 2021. Since listing, it has given a massive return of more than 250% to its investors. Will BCL Industries continue to provide such impressive returns in the future? Let’s explore the BCL Industries growth potential and BCL Industries share price target from 2025 to 2050 in this article.
About BCL Industries
BCL Industries was established in 1976. It works in different areas like making edible oils, alcohol products, and real estate. The company makes cooking oils, vanaspati ghee (a type of vegetable oil), and alcohol products like ethanol. It has factories in Punjab and other places. BCL Industries also builds houses and other buildings.
BCL Industries Business Model
- Making Cooking Oil: The company makes and sells cooking oils and vanaspati ghee (a type of vegetable ghee).
- Making Alcohol Products: BCL Industries produces ethanol and other alcohol products used in liquor and fuel.
- Building Houses and Shops: The company builds houses, shops, and offices.
- Selling Extra Products: When making oil and alcohol, some extra materials are left, like oil cakes (used as animal feed).
- Selling to Other Countries: The company exports some of its products to other countries, helping them earn more.
- Government Supply: BCL supplies ethanol to the government, which is mixed with petrol for fuel.
BCL Industries Fundamental Analysis
| Stock Name | BCL Industries Ltd. |
|---|---|
| Market Cap | ₹ 1,380 Cr. |
| 52W High | ₹ 86.3 |
| 52W Low | ₹ 43.0 |
| Stock P/E | 13.3 |
| Book Value | ₹ 25.6 |
| Dividend Yield | 0.53 % |
| ROCE | 15.7 % |
| ROE | 16.0 % |
| Face Value | ₹ 1.00 |
| Shareholders | Mar 2023 | Mar 2024 | Dec 2024 |
|---|---|---|---|
| Promoters | 61.13% | 56.08% | 57.77% |
| FIIs | 0.41% | 6.41% | 0.77% |
| Government | 0.00% | 0.00% | 0.92% |
| Public | 38.45% | 37.52% | 40.54% |
| No. of Shareholders | 23,805 | 92,001 | 1,41,790 |
Key Factors Driving BCL Industries Future Growth
- More People Buying Cooking Oil: As people eat more packaged food and eat out, BCL Industries will sell more cooking oil and vanaspati, making more money.
- Higher Demand for Ethanol: The government is mixing ethanol with petrol to reduce pollution. Since BCL Industries makes ethanol, this will help it grow.
- Building More Houses and Shops: BCL Industries is making houses, shops, and offices. As more people need homes, BCL Industries will earn more.
- Selling to Other Countries: BCL Industries is selling more products outside India. If this continues, earnings will go up.
- Using Better Machines: BCL Industries is improving its factories with better machines, which helps make good products faster and at a lower cost.
- Earning from Different Businesses: BCL Industries makes money from oil, alcohol, and real estate, so even if one business slows down, the other can keep it strong.
- Strong Sales Network: BCL Industries has many sellers and shops selling its products, helping it reach more customers.
- Eco-Friendly Production: BCL Industries is using cleaner methods to make its products, which will attract more buyers and investors.
Pros of Investing in BCL Industries
- Strong Sales Growth: In the quarter ending June 2024, BCL Industries reported net sales of ₹635.66 crore, a 48.29% increase from the same period the previous year
- Diverse Business Areas: BCL Industries operates in multiple sectors, including edible oils, distilleries, and real estate, providing various sources of income.
- Consistent Profits: In the quarter ending September 2024, BCL Industries’ net profit rose by 53.95% to ₹27.65 crore compared to ₹17.96 crore in the same quarter the previous year.
- Expansion Plans: BCL Industries is increasing its ethanol production capacity with new plants in Bathinda and Kharagpur, which is expected to boost future profits.
- Government Support for Biofuels: The government is promoting the use of biofuels like ethanol. Since BCL Industries produces ethanol, it stands to benefit from these favorable policies.
- Improved Production Efficiency: By investing in advanced technologies, BCL Industries is enhancing its production processes, leading to better profit margins.
- Experienced Management Team: The leadership at BCL Industries has a proven track record in managing various business operations, contributing to the company’s sustained growth.
Cons of Investing in BCL Industries
- Stock Price Drop: BCL Industries’ share price has fallen by about 31.68% in the last year, which shows the stock may not be performing well.
- Lower Returns Compared to Others: In the last three years, BCL Industries has given a return of only 12.29%, while other similar stocks in the market have given much higher returns.
- High Price-to-Book (P/B) Ratio: BCL Industries’ P/B ratio is 1.86, which suggests investors are paying more for the company’s assets than they might be worth.
- Shares Pledged by Promoters: Some of the company’s promoters have pledged 4.42% of their shares, which can be risky if the company faces financial problems.
| Years | Target Price |
|---|---|
| BCL Industries Share Price Target 2025 | ₹ 55 to 60 |
| BCL Industries Share Price Target 2026 | ₹ 62 to 78 |
| BCL Industries Share Price Target 2027 | ₹ 75 to 100 |
| BCL Industries Share Price Target 2028 | ₹ 90 to 130 |
| BCL Industries Share Price Target 2029 | ₹ 110 to 165 |
| BCL Industries Share Price Target 2030 | ₹ 135 to 215 |
| BCL Industries Share Price Target 2035 | ₹ 280 to 650 |
| BCL Industries Share Price Target 2040 | ₹ 550 to 1950 |
| BCL Industries Share Price Target 2050 | ₹ 2500 to 6000 |
Conclusion
BCL Industries is working in different areas like making cooking oils, alcohol products, and building properties. The company is benefiting from more demand for alcohol and cooking oils. However, there are risks, like its stock price volatility and changes in the prices of raw materials. While BCL Industries has good potential to grow, investors should think carefully about both the positives and risks before deciding to invest.
Disclaimer
This article is for educational purposes only. It is not a stock recommendation and should not be treated as such. Please ask your financial advisor before making any investment decision.
Also Read: INDIGO Share Price Target 2025 to 2050