BCL Industries & Infrastructure, a diversified smallcap company engaged in edible oil, distilleries and real estate businesses, is doing wonders on Dalal Street over the past few years.
And smallcap czar Porinju Veliyath has made a killing on it.
The stock has climbed 974 per cent over the past four years, rising from a low of Rs 15.70 on February 11, 2014, to Rs 168.55 on February 9, 2018. During this period, market capitalisation of the company climbed to Rs 264 crore from Rs 22 crore.
Porinju held over 1 per cent stake, or 2,00,000 shares, in the company as of December 31, 2017, latest shareholding data available on the BSE website shows. Porinju was not among the shareholders who held more than 1 per cent in the company as of September 30, 2017.
BCL Industries is not listed on the National Stock Exchange.
Two other investors, Nikhil Vohra and Subramanian P, held over 1 per cent stake in the company as of December 31, 2017.
Sunita Mittal, Rajinder Mittal, Kushal Mittal and Shweta Jhunjhunwala are among key promoters of BCL Industries and Infrastructure and they together hold 51.02 per cent.
For the quarter ended December 31, 2017, the company reported a net profit of Rs 4.78 crore, up 21.62 per cent from Rs 3.93 crore reported for the same period last year.
On a yearly basis, profits rose to Rs 10.02 crore in the financial year ended March 31, 2017 from Rs 2.44 crore in 2007-08. The company has reported profits in nine out of last 10 years. In FY13, the company posted a net loss of Rs 3.34 crore for FY13.
The company is one of the largest vertically integrated agro-based edible oil players in India, with a gross annual turnover of more than Rs 650 crore and a total management experience of nearly four decades.
Its edible oil business consists of oil, solvent extraction unit, vanaspati ghee and refined vegetable oil under the brands of Homecook, Do Khajoor and Murli. Its distillery business manufactures a range of liquors.
The real estate business consists of projects, such as DD Mittal Tower Phase I and II and Ganapati Enclave Colony in Bhatinda, Punjab.
The company owns oil mills, solvent extraction plants, rice sheller, chemical refinery, physical refinery and vanaspati plant. It has a capacity to process 1,000 tonnes of edible oil per day.
“We are well positioned to capture the growing opportunities and deliver steady value creation to our stakeholders. We continue to invest in the sunrise areas of our business, which will be significant drivers for future growth. We are building on our solid progress so far, and remain focused on breaking new barriers of performance and returns over a period of time,” BCL Industries said in its last annual report.
As of March 31, 2017, the company’s debt-to-equity (D/E) ratio stood at 2.24 times, return on assets (RoA) at 2.30 per cent, return on equity (RoE) at 10.79 per cent and return on capital employed (RoCE) at 11.25 per cent.
D/E, RoA, RoE and RoCE stood at 2.02 times, 1.71 per cent, 7.55 per cent and 8.78 per cent as of March 31, 2016.
Disclaimer: The stock mentioned in the article is not a stock recommendation. Please consult your financial advisor before investing .