Multibagger Stock Turns 1 Lakh To Rs 1.55 Cr In 21 Years: Buy?

On Monday's closing session, BCL Industries, a small-cap FMCG business, had a market worth of Rs 1,184.32 Cr.

As per the data of Groww, the stock price has rallied from Rs 3.15 as of 19th July 2002 to the current market price of Rs 490.40 as of Monday, 5th September, logging an all-time high of 15,468.25%. Hence, if an investor had invested Rs 1 lakh 21 years ago in BCL Industries then he or she would have got a return of Rs 1.55 Cr now.

InCred Equities, though, believes the stock has more potential. The brokerage has recommended to add this stock with a long-term target price of Rs 925 per equity share. The current share price of BCL Industries is Rs 490, which indicates that the brokerage thinks the multibagger stock still has the ability to provide investors with a return of more than 85%.

InCred Equities has pointed out below key triggers which makes BCL Industries a worth buying for potential investors.

The company's new plant in West Bengal has commenced production.

Strong tailwind in ENA business to aid growth in volume as well as value terms.

Ethanol plant, with a capacity of 200klpd in Punjab, is just one quarter away.

The recent downturn in its share price could be attributed to a lower-than-expected increase in ethanol prices, dampening the sector's prospects. However, the company remains on a firm footing with its huge capacity coming on stream.

"The company moving from 200klpd to 600klpd in terms of ethanol/ENA capacity, respectively, in the current financial year," said InCred Equities.

Commenting on the valuation of BCL Industries, the brokerage said "Current valuation: 6.9x FY25F P/E - target price of Rs.925 with an ADD rating; Bull-case scenario target price - Rs.925; Bear-case scenario target price - Rs.660."

On Monday, the shares of BCL Industries on the BSE at Rs 490.40 apiece down by 0.61% over the previous close of Rs 493.40. The stock made a 52-week-high of Rs 536.35 on (20/06/2023) and a 52-week-low of Rs 276.15 on (15/11/2022).