November 2023

SINCE 1986

BSE Code : 524332

The Trick Is To Time Duration : 1 year

Spot Them At The CMP : `56.46 (as on 23 November, 2023)

Larval Stage Target Price : `73.50

BCL Industries Ltd

Perfect Blending for Your Portfolio
About the company
BCL Industries is a leading agro-processing company in North In-
dia with a diverse portfolio of businesses, including Grain Based
Ethanol and Extra Neutral Alcohol (ENA), Edible Oils, and Rice
Milling, and has also diversified into Real Estate. The company
is consistently ranked among the top 1,000 listed companies in
India in terms of market capitalization.
BCL Industries was founded by Dwarka Dass Mittal, who rec-
ognized the potential of utilizing agricultural produce to create
value-added products. The company has grown significantly
under the leadership of Rajinder Mittal, the Managing Director,
who has spearheaded its expansion and diversification. Kushal
Mittal, the third generation of the promoter family, has further
strengthened the company’s position by leveraging his expertise
in financial management and project financing.
Driven by a strong purpose to transform India’s agricultural
output into marketable products, BCL Industries plays a crucial
role in supporting the nation’s agrarian economy and enhancing
farmers’ incomes. The company’s strategic focus on grain-based
ethanol production aligns with the government’s initiatives to re-
duce oil imports and promote biofuels. Additionally, BCL Indus-
tries’ expertise in manufacturing edible oils from local sources
contributes to India’s self-reliance in oil production.
The company’s extensive buyer and seller network, coupled
with its strong presence in various agriculture-based industries,
serves as a key differentiator. As one of the largest producers of
grain-based ENA and ethanol in India, BCL Industries is well-po-
sitioned to capitalize on the growing demand for these products.
With its strategic expansions into Punjab and Bengal, the com-
pany is expanding its reach to cater to the demand for ENA and
Ethanol across the country.
Vanaspati and Refined Oil, extracts oil from Seeds and de-
oiled cakes, and produces Basmati and par-boiled rice.
BCL Industries has a robust dealership network of around
400 dealers, operating across Punjab, Rajasthan, Himachal
Pradesh, Jammu and Kashmir, Haryana, and the National
Capital Region. BCL Industries also provides contract man-
ufacturing services for the production of edible oil to other
industry players. The company’s Edible oil refinery has a
total capacity of 200 MT per day with 78 per cent capacity
utilisation, which also gives the company room to increase
its revenue because of less utilisation. The Vanaspati plant
also has a capacity of 100 MT per day with 21 per cent util-
isation. The company’s solvent extraction business has a
300 MT per day capacity with utilisation levels of 100 per
cent. The company’s oil seed crushing unit has a capacity
of 200 MT per day which operates seasonally.
n Distillery - BCL Industries is a leading manufacturer of ENA
and Ethanol in India. The company operates two state-of-
the-art distillation facilities with a combined capacity of
600 KLPD. BCL Industries utilizes multiple raw materials,
including rice, millet, and maize, to produce ENA and Eth-
anol. The company serves customers across India and is
committed to sustainable practices, including zero dis-
charge from its facilities. BCL Industries is well-positioned
to capitalize on the growing demand for ENA and Ethanol
in India, driven by factors such as the increasing demand
for alcoholic beverages and the government’s push for
ethanol blending in petrol.
n Real estate – The company’s real estate segment gener-
ates a very small part of total revenue which is under one
per cent. Furthermore, the company is also planning to
move away from the real estate segment and use cash to
bring its debt levels.

Business segments
BCL Industries has three business segments:
Industry Outlook
According to Future Market Insight, the Indian alcohol market
n Edible oil and Vanaspati – BCL Industries fully integrated
is expected to grow from USD 54,740 million in 2023 to USD
producer of edible oil in India. The company manufactures
Continued On PG 2...
CONFIDENTIALITY NOTICE : Information contained in this report is intended for the subscribers of this product only. Unauthorized forwarding, printing, copying, distribution, or using the information in a
searchable, machine-readable database is strictly prohibited and may be unlawful. Disclaimer: The recommendations are purely a view point and there is no guarantee on the returns. Hence all the clients (paid
or unpaid) are requested to apply their prudence before acting on any of the recommendations. Neither DSIJ Pvt Ltd nor any of its promoters, members, or employees shall be held responsible for any losses
incurred (if any) by acting on the recommendations. Disclosure : Kindly refer to the detailed disclosures as per SEBI (investment advisors) regulations, 2013 placed at www.DSIJ.in

Investment in securities market are subject to market risks. Read all the related documents carefully before investing.
“Registration granted by SEBI, membership of BASL (in case of IAs) and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors
DSIJ Pvt. Ltd. : Office no 211, Vascon Platinum Square, Next to Hyatt Regency, Vimannagar, Pune- 411014 I For Customer Service : 020-66663-802/803 OR service@dsij.in
Registered Office Address: 419-A, 4th Floor, Arun Chambers, Tardeo, Next to AC Market, Mumbai - 400034
CIN No. : CIN-U22120MH2003PTC139276 SEBI Research Analyst - INH000006396​ DSIJ INVESTMENT ADVISORY UNIT (CRU)

SINCE 1986
1,11,238.9 million in 2030, at a CAGR of 7 per cent. This growth is
being driven by factors such as changing lifestyles, urbanization,
and a burgeoning middle class. The market is also witnessing a
shift towards premium and craft spirits, as well as increased de-
mand for wine and craft beer. However, the market faces chal-
lenges such as high taxation rates, regulatory complexities, and
counterfeit products. Despite these challenges, the future of the
Indian alcohol market looks promising.
According to BlueWeave Consulting, the Indian ethanol mar-
ket is expected to reach USD 4.15 billion by 2029, growing at a
CAGR of 9.16 per cent. This growth is being driven by the rising
demand for biofuels, favourable government policies, and in-
creased fuel consumption.
India is gradually increasing the usage of ethanol-based fuels
and electric cars, which will fuel market expansion. The grain-
based segment dominates the market by source, while the
denatured ethanol segment is expected to be a faster-growing
segment by purity. The fuel and fuel additives segment leads the
market by application.
Growth Trigger
n The company’s management expects revenue of Rs 1,700-
1,800 crores from the distillery sector in the next financial
year.
n Strong surge in demand for country liquor brands in the
Punjab region with the upcoming new year.
n The company is expected to achieve a 15 per cent EBITDA
margin from the current 10 per cent.
n The company’s new power plant is expected to bring
down the power consumption cost of the company by an
average of Rs 2.7 per Kg.
n The company recently successfully commissioned its ded-
icated 200 KLPD ethanol plant in Bhatinda, with the proj-
ect’s total cost amounting to around Rs 205 crore.
n In the current quarter, Q3FY24, the distillery units are op-
erating at full 100 per cent capacity utilization. The com-
pany has also taken significant steps to bring down power
cost.
Recent Quarter and Annual Performance
In Q2FY24, BCL Industries Limited posted a revenue of Rs 480.71
crores, marking a 6.22 per cent increase compared to the pre-
vious quarter. The net profit after tax for Q2FY24 stood at Rs
19.67 crores, reflecting a 2399 per cent increase compared to
the same quarter of the previous year. The company PBIDTM
per cent of the company stood at 10.16% and PATM per cent
stood at 4.09 per cent.
Investment in securities market are subject to market risks. Read all the related documents carefully before investing.
“Registration granted by SEBI, membership of BASL (in case of IAs) and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors
DSIJ Pvt. Ltd. : Office no 211, Vascon Platinum Square, Next to Hyatt Regency, Vimannagar, Pune- 411014 I For Customer Service : 020-66663-802/803 OR service@dsij.in
Registered Office Address: 419-A, 4th Floor, Arun Chambers, Tardeo, Next to AC Market, Mumbai - 400034
CIN No. : CIN-U22120MH2003PTC139276 SEBI Research Analyst - INH000006396​
November 2023
The Trick Is To
Spot Them At The
Larval Stage
For the fiscal year ending in FY23, the company reported a rev-
enue of Rs 1819.92 crores, indicating a YoY growth of 8.69 per
cent. The net profit after tax for the year amounted to Rs 64.36
crores, which decreased by 24.09 per cent on a YoY basis. In
FY23, the company’s Edible oil and Vanaspati segment contrib-
uted about 66.23 per cent of revenue, while distillery contribut-
ed 32.98 per cent and real estate by 0.79 per cent.
Recent Financial Ratios:
n Dividend yield- 0.88%
n ROCE- 13.9%
n ROE- 16.1%
n Face Value- Rs 1.00
n PE- 17.2x
n P/B – 2.58x
n M.cap/Sales – 0.75x
n Promoter Holding – 60.41%
Outlook and Valuation
If we look at the valuation of the company, it is currently trading
at the PE of 17.2x whereas its industry PE is stood at 33.0x it
shows that the company is available at a fair valuation, with at-
tractive return ratios like ROCE and ROE (13.9 per cent and 16.1
per cent). The price-to-book value of the company is 2.58x which
is high when compared to its peers, but can be justified with the
growth of the company. The company is maintaining a healthy
Interest coverage ratio of 5.25x. The PEG ratio of the company
is 0.57x which looks attractive. In the last three years, the sales
of the company increased at a CAGR of about 26 per cent and a
profit growth of 36 per cent. The company’s asset turnover ratio
stands at a healthy rate of 1.96.
BCL Industries has established a strong market presence
through its diversified product portfolio. BCL Industries has
made significant progress in its distillery business, commission-
ing a 200 KLPD ethanol dedicated plant in Bathinda and expand-
ing its ethanol production capacity at Svaksha Distillery Ltd. The
company’s focus on cost efficiency and market experience has
led to stable revenue and margins, even in the face of inflation-
ary pressures. Additionally, the increasing demand for country
liquor brands in Punjab is expected to further boost BCL Indus-
tries’ distillery business. The company’s ongoing work for a 100
KLPD ethanol expansion at Svaksha Distillery Limited, has se-
cured clearances and machinery orders placed by the company.
Given the growth prospect of the company, we recommend
a BUY with a target price of Rs 73.50.
Continued On PG 3...
DSIJ INVESTMENT ADVISORY UNIT (CRU)
 November 2023
SINCE 1986

The Trick Is To
Spot Them At The
Larval Stage

Inc/Exp Statement (Consolidated) (Rs. in Crores )

Description Mar - 23 Mar - 22 Mar - 21 Mar - 20 Mar - 19
Net Sales 1819.92 1993.07 1431.29 918.32 896.13
Total Income 1826.63 2001.19 1459.2 925.51 903.69
Total Expenditure 1696.36 1855.49 1362.59 862.29 822.46
PBIDT 130.28 145.7 96.61 63.21 81.23
PAT 64.35 84.77 42.15 25.85 41.28
Dividend % 50 50 50 -- 12
Adj. EPS(Rs) 2.74 3.51 1.75 1.35 2.37

Quarter On Quarter (Consolidated)Rs. (in Crores)

Particulars Sept - 23 June - 23 Q on Q Var % Sept - 22 Y on Y Var %
Net Sales 480.71 428.67 12.14 452.58 6.22
Total Expenditure 433.88 389.18 11.48 446.64 -2.86
PBIDT (Excl OI) 46.84 39.49 18.6 5.94 688.73
PAT 19.67 19.75 -0.44 -0.82 2510.17
PBIDTM% (Excl OI) 9.74 9.21 5.75 1.31 643.51
PBIDTM% 10.16 9.63 5.5 1.9 434.74
PATM% 4.09 4.61 -11.28 -0.18 2372.22
Adj. EPS(Rs) 0.07 0.77 -90.91 0.33 -78.79

**Track calls using our new investor app

Investment in securities market are subject to market risks. Read all the related documents carefully before investing.
“Registration granted by SEBI, membership of BASL (in case of IAs) and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors
DSIJ Pvt. Ltd. : Office no 211, Vascon Platinum Square, Next to Hyatt Regency, Vimannagar, Pune- 411014 I For Customer Service : 020-66663-802/803 OR service@dsij.in
Registered Office Address: 419-A, 4th Floor, Arun Chambers, Tardeo, Next to AC Market, Mumbai - 400034

CIN No. : CIN-U22120MH2003PTC139276 SEBI Research Analyst - INH000006396​ DSIJ INVESTMENT ADVISORY UNIT (CRU)
 November 2023
SINCE 1986

The Trick Is To
Spot Them At The
Larval Stage
DISCLAIMER & DISCLOSURE:
This report has been prepared by DSIJ Private Limited and is meant for sole use by the recipient and not for circulation. For all content
we have relied upon and assumed, without any independent verification, accuracy and completeness of all information available in
public domain or from sources considered reliable. The content contains certain assumptions and views, which DSIJ considers rea-
sonable now, and which are subject to change. Computations adopted are indicative and are based on current market prices and
general market sentiment. No representation or warranty is given by DSIJ as to the achievement or reasonableness or completeness
of any idea and/or assumptions. The content does not purport to contain all the information that the recipient may require. Recipi-
ents should not construe any of the contents herein as advice relating to business, financial, legal, taxation, or other matters and they
are advised to consult their own business, financial, legal, taxation and other experts / advisors concerning the company regarding
the appropriateness of investing in any securities or investment strategies discussed or recommended and should understand that
statements regarding future prospects may not be realized. It may be noted that investments in equity and equity-related securities
involve a degree of risk and investors should not invest any funds unless they can afford to take the risk of losing their investment. In-
vestors are advised to undertake necessary due diligence before making an investment decision. For making an investment decision,
investors must rely on their own examination of the Company including the risks involved. Investors should note that income from
investment in such securities, if any, may fluctuate and that each security’s price or value may rise or fall. Accordingly, investors may
receive back less than originally invested. Mutual Funds Investments are subject to market risk. Please read the offer and scheme
related documents carefully before investing. This document may not be reproduced, distributed or published in whole or in part,
directly or indirectly, for any purposes or in any manner.
n Neither DSIJ nor any of its employees shall be liable for any direct, indirect, special, incidental, consequential, punitive or exempla-
ry damages, including lost profits arising in any way from the information contained in this material. The content does not con-
stitute an offer for sale, or an invitation to subscribe for, or purchase equity shares or other assets or securities of the company
and the information contained herein shall not form the basis of any contract. It is also not meant to be or to constitute any offer
for any transaction.
n DSIJ or its analysts did not receive any compensation or other benefits from the companies mentioned in the report or third party
in connection with preparation of the research report.
n Subject company may have been client of DSIJ or its associates during twelve months preceding the date of publication of the
research report.
n DSIJ or its associates may have received compensation from the subject company in the past twelve months.
n DSIJ or its associates have not managed or co-managed public offering of securities for the subject Company in the past twelve
months.
n The Research Analysts of the company have not served as an officer, director or employee of the subject Company.
n The Research Analysts or the Company have not been engaged in market making activity for the subject Company.
n Research analyst or his/her relatives may have actual/ beneficial ownership of 1% or more securities of the subject company at
the end of the month immediately preceding the date of publication of research report.
n DSIJ or Research analyst or his/her relatives may have financial interest in the subject company in ordinary course of business.
n DSIJ and its associate company(ies), their directors and employees may from time to time, have a long or short position in, and
buy or sell the
n securities of the company(ies) mentioned herein or may have any other potential conflict of interests with respect to any recom-
mendation and other related information and opinions.

Definitions of Terms Used in the research reports:

‘Subject company’ means the company where a recommendation is being suggested.
n Buy: The intended audience is being informed that they can consider purchasing the shares of the said company
n Sell: The intended audience is being informed that they can consider selling the shares of the said company
n Hold: The intended audience is being informed that they can consider to neither purchase or sell but continue to hold, if any, the
shares of the said company

Investment in securities market are subject to market risks. Read all the related documents carefully before investing.
“Registration granted by SEBI, membership of BASL (in case of IAs) and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors
DSIJ Pvt. Ltd. : Office no 211, Vascon Platinum Square, Next to Hyatt Regency, Vimannagar, Pune- 411014 I For Customer Service : 020-66663-802/803 OR service@dsij.in
Registered Office Address: 419-A, 4th Floor, Arun Chambers, Tardeo, Next to AC Market, Mumbai - 400034

CIN No. : CIN-U22120MH2003PTC139276 SEBI Research Analyst - INH000006396​ DSIJ INVESTMENT ADVISORY UNIT (CRU)
 November 2023
SINCE 1986

The Trick Is To
Spot Them At The
Larval Stage

Investment Advisor
DSIJ PRIVATE LIMITED, Investment Advisor, regulated by the Securities and Exchange Board of India,
Investment Advisor # NA000001142; Type- Non-Individual, validity- (Perpetual), Registered Office
Address: 419-A, 4TH FLOOR, ARUN CHAMBERS, TARDEO, NEXT TO AC MARKET, MUMBAI - 400 034.
022-43476012/13/14/15, Correspondence/Head Office -Office No - 211, Vascon Platinum Square, Next
to Hyatt Regency, Vimannagar, Pune- 411014., (+91)-20-66663800 / 801, Principal Officer - (+91)-20-
66663800, service@dsij.in, Corresponding SEBI regional/local office address- SEBI Bhavan BKC, Plot
No.C4-A, ‘G’ Block, Bandra-Kurla Complex, Bandra (East), Mumbai - 400051.
Disclaimer: The recommendations are purely a view point and there is no guarantee on the returns.
Hence all the clients (paid or unpaid) are requested to apply their prudence before acting on any of the
recommendations. Neither DSIJ PVT LTD nor any of its promoters, members, or employees shall be held
responsible for any losses incurred (if any) by acting on the recommendations.
Disclosure: Kindly refer to the detailed disclosures as per SEBI (Investment Advisers) Regulations, 2013.
Placed at https://www.dsij.in/disclaimer

Research Analyst
DSIJ PRIVATE LIMITED, Research Analyst, regulated by the Securities and Exchange Board of India, Research
Analyst # INH000006396.
Disclaimer: The recommendations are purely a view point and there is no guarantee on the returns.
Hence all the clients (paid or unpaid) are requested to apply their prudence before acting on any of the
recommendations. Neither DSIJ PVT LTD nor any of its promoters, members, or employees shall be held
responsible for any losses incurred (if any) by acting on the recommendations.
Disclosure: Kindly refer to the detailed disclosures as per SEBI (Research Analyst) Regulations, 2014.
Placed at https://www.dsij.in/disclaimer
Registration granted by SEBI, membership of BASL (in case of IAs) and certification from NISM in no way
guarantee performance of the intermediary or provide any assurance of returns to investors.
Disclaimer : https://www.dsij.in/disclaimer

Investment in securities market are subject to market risks. Read all the related documents carefully before investing.
“Registration granted by SEBI, membership of BASL (in case of IAs) and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors
DSIJ Pvt. Ltd. : Office no 211, Vascon Platinum Square, Next to Hyatt Regency, Vimannagar, Pune- 411014 I For Customer Service : 020-66663-802/803 OR service@dsij.in
Registered Office Address: 419-A, 4th Floor, Arun Chambers, Tardeo, Next to AC Market, Mumbai - 400034

CIN No. : CIN-U22120MH2003PTC139276 SEBI Research Analyst - INH000006396​ DSIJ INVESTMENT ADVISORY UNIT (CRU)