Multibagger Penny Stock Below Rs 50: Company Acquired 69,70,000 equity shares of Pioneer Industries Private Limited
The stock is up by 35 per cent from its 52-week low of Rs 34.50 per share and has given multibagger returns of 860 per cent in 5 years.
BCL Industries Limited has approved the acquisition of 6,970,000 equity shares of Pioneer Industries Private Limited, increasing BCL's stake from its current 4.36 per cent to 19.57 per cent. The acquisition is priced at Rs 44.18 per share, totalling approximately Rs 30.8 crore, and is expected to be completed within 60 days. Pioneer Industries, incorporated on November 18, 1997, has a paid-up capital of Rs 45,82,00,000 and reported a turnover of Rs 530.21 crore for FY 2023-24.
This transaction is considered a related party transaction, with BCL acquiring 2,291,600 shares from Mrs. Sunita Mittal, 4,061,800 shares from Mr. Kushal Mittal (both BCL promoters), and 616,600 shares from Kissan Fats Limited, a promoter-controlled entity. The acquisition, conducted at fair market value, is strategic as both companies operate in the "Agro & Distillery Industry," aiming for synergies through cost controls, industry know-how, and market insights. Pioneer Industries is an agri-processing company in Pathankot, Punjab, with a 400 KLPD ENA/Ethanol unit and a vital wheat gluten unit, reporting turnovers of Rs 479.21 crore (2021-22), Rs 519.21 crore (2022-23), and Rs 530.21 crore (2023-24).
About the Company
Incorporated in 1975, BCL Industries Limited, a Mittal Group agro-processing company, stands as one of India's largest manufacturers with strong expertise in grain procurement. Its diverse business portfolio spans the edible oil & vanaspati sector, real estate development, and a prominent distillery segment. In the distillery business, the company is a notable grain-based ethanol producer, active in both ENA (Extra Neutral Alcohol) and IMIL (Indian Made Indian Liquor) markets, offering popular country liquor brands such as Green Apple Vodka and Punjab Special Whisky.
DSIJ's ‘Penny Pick’ service provides research-backed penny stock recommendations below Rs. 100. If this interests you, do download the service details here.
According to Quarterly Results, the net sales increased by 21 per cent to Rs 743.43 crore and the net profit increased by 16 per cent to Rs 27.56 crore in Q4FY25 compared to Q4FY24. In its annual results, the net sales increased by 32 per cent to Rs 2,909.60 crore in FY25 compared to Rs 2,200.62 crore in FY24 while the net profit increased by 7 per cent to Rs 102.85 crore in FY25 compared to Rs 95.91 crore in FY24.
The promoters of the company bought 7,89,324 shares and increased their stake to 58.03 per cent and FIIs bought 2,76,047 shares and increased their stake to 0.86 per cent in Q4FY25 compared to Q3FY25. The company has a market cap of over Rs 1,200 crore with a PE of 14x whereas the industry PE is 31x. The stock is up by 35 per cent from its 52-week low of Rs 34.50 per share and has given multibagger returns of 860 per cent in 5 years.
Disclaimer: The article is for informational purposes only and not investment advice.