Brokerage Sees More Fire In This Multibagger Edible Oil Stock That Has Jumped Over 1100% In 3 Years

BCL Industries, a leading edible oil company, has announced to split its equity shares, according to information available on exchanges. The stock has delivered a multibagger return, resulting in wealth gain for investors.

Brokerage firm InCred Equity sees more upside in the counter as it has positive views on the company's business. It said that key business triggers to watch out for in coming months include the commencement of production at the company's new plant in West Bengal, a strong tailwind in ENA business to aid growth in volume as well as value terms.

It added that the ethanol plant, with a capacity of 200 klpd 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 is moving from 200klpd to 600klpd in terms of ethanol/ENA capacity, respectively, in the current financial year, it said.

It has initiated ADD rating on the stock for a target of Rs 790 per share in null-case scenario. In the bear-case scenario, the brokerage sees BCL Industries shares touching the level of Rs 656.

BCL Industries has a market cap of Rs 1,227.79 crore. The small cap stock has doubled investors' money in a two-year period, zooming 99.57 per cent. It has made investors wealthier by 1161 per cent in three years.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.