Review
We had recommended BCL Industries Ltd. in Volume 33 Issue no. 24, dated October 29 to November 11, 2018, under the ‘Cover Story’ segment. The stock was previously recommended due to the company having a competitive edge over its peers and displaying an excellent financial performance.
BCL Industries is a conglomerate, dealing in the business of solvent extraction, distillation, edible oil, and real estate. It is the only company in India with a forward and backward integrated distillery – ethanol industry plant.
On the consolidated financial front, the company posted the net sales of Rs.215.86 crores in Q1FY20, an increase of 6.39 per cent from the net sales of Rs.202.90 crores in Q1FY19. For Q1FY20, the company’s PBDT stood at Rs.11.42 crores, reporting a rise of 19.13 per cent from the PBDT of Rs.9.59 crores, recorded in Q1FY19.
The company’s net profit grew by 13.05 per cent to Rs.6.46 crores in Q1FY20 from Rs.5.72 crores gained in Q1FY19.
On the annual front, the net sales in FY19 increased by 5.33 per cent to Rs.896.13 crores from Rs.850.79 crores in FY18. For the last fiscal, PBDT increased by 93.84 per cent to reach Rs.62.61 crores from Rs.32.30 crores in FY18.
BCL gained a net profit of Rs.41.28 crores in FY19, which is a significant increase from the net profit of Rs.17.84 crores, accumulated in FY18.
With the increasing population and the expanding food industry, the demand for edible oil is set to increase further.
Based on the company’s stable financial performance, we recommend our investor-readers to HOLD the stock.
We had previously recommended TV18 Broadcast Ltd. in Volume no. 33 Issue no.24, dated October 29 to November 11, 2018 under the ‘Low Priced Scrip’ segment. The company owns and operates CNN IBN, one of the leading 24-hour English language news and current affairs channel in India. It manages the operations of IBN7, a Hindi language news and current affairs channel, and has recently launched its first regional channel, IBN Lokmat in Maharashtra. The business areas of the company can be broadly classified as news broadcasting, wherein, the company owns and operates three news and current affairs channels, namely, CNN-IBN (English), IBN 7 (Hindi), and IBN Lokmat (Marathi). TV18 Broadcast also operates several news portals, such as ibnlive.com (English), IBNKhabar.com (Hindi), and ibnlokmat.tv (Marathi).
On the consolidated financial front, the company posted the net sales of Rs.1,307.14 crores in Q2FY20, down by 5.94 per cent from Rs.1,389.67 crore, posted in Q2FY19. The PBIDT witnessed a decrease of 2.50 per cent as it stood at Rs.105.12 crores against Rs.107.82 crores, recorded in Q2FY19. The PAT, however, witnessed a growth of 12.82 per cent YoY, touching Rs.36.61 crores in Q2FY20. It stood at Rs.32.45 crores in the same quarter of the previous year.
On the annual front, BCL posted a substantial growth of over 243 per cent in FY19, reaching Rs.5,723.10 crores from Rs.1,665.05 crores, posted in FY18. The PBIDT of the company stood at Rs.313.53 crores in FY19, a giant leap from Rs.58.97 crores, recorded in FY18. The company reported a profit of Rs.174.68 crores in FY19 against a loss of Rs.60 crores posted in the last fiscal year. Thus, we recommend you to HOLD the stock.
(Closing price as of Nov 06, 2019)