AmanSaraf

BCLIND is good for Medium to Long Term

Long
NSE:BCLIND   BCL INDUSTRIES LTD
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.

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