1. At a Glance
From distilleries to biodiesel to dabbling in real estate, BCL Industries is the classic “do-it-all” story. While revenues keep growing (₹2,815 Cr in FY25), margins are flat, debt is rising, and the promoter stake is on a reverse diet.
2. Introduction with Hook
Think of BCL as the startup founder who started with cooking oil, moved to booze, and now wants to power trucks. A business that manufactures Ethanol (check), owns oil refineries (check), and builds real estate (sure, why not?)
- FY25 Revenue: ₹2,815 Cr
- FY25 Net Profit: ₹103 Cr
- ROE/ROCE stuck at ~13%
- Promoter holding slipped ~3% over 3 years
Is this diversification… or confusion?
3. Business Model (WTF Do They Even Do?)
Three Legs of the Stool:
- Distillery Segment: Ethanol, ENA, IMIL — large player in India’s green fuel push
- Edible Oil: Once a big contributor, now in phase-out mode
- Real Estate: Let’s just say… it exists on the books
Also: Acquired 19.57% stake in Pioneer Industries for ₹30.8 Cr — clearly doubling down on distillery bets.
4. Financials Overview
| FY | Revenue | PAT | OPM % | ROCE % | ROE % |
|---|---|---|---|---|---|
| FY23 | ₹1,818 Cr | ₹64 Cr | 7% | 13% | 13% |
| FY24 | ₹2,129 Cr | ₹96 Cr | 9% | 16% | — |
| FY25 | ₹2,815 Cr | ₹103 Cr | 7% | 13% | 13% |
Takeaway:
Revenue: growing.
Margins: stagnating.
Cash flow: stabilizing.
Debt: climbing Mount Himalaya.
5. Valuation
CMP: ₹43.2
P/E: 13.4
Book Value: ₹27.2 → CMP/BV = 1.59x
Sector average P/E = 30+
| Method | Fair Value Range |
|---|---|
| P/E 15x | ₹45–₹50 |
| EV/EBITDA Basis | ₹42–₹48 |
| Discounted due to promoter selloff, capex & edible oil exit | ₹38–₹44 |
EduFair Value Range™: ₹38 to ₹50
(If new biodiesel plant delivers, upside widens)
6. What’s Cooking – News, Triggers, Drama
- Q4 FY25: Revenue ₹747 Cr, 21% YoY growth
- Biodiesel Plant Commissioning (July 2025) = major capacity addition
- Exited Edible Oil Biz (finally!)
- Promoters diluted stake in chunks
- FII % seesaws: from 5.88% → 0.47% (hot money went cold)
7. Balance Sheet
| FY | Equity | Reserves | Debt | Assets |
|---|---|---|---|---|
| FY23 | ₹24 Cr | ₹456 Cr | ₹438 Cr | ₹1,096 Cr |
| FY24 | ₹27 Cr | ₹624 Cr | ₹477 Cr | ₹1,301 Cr |
| FY25 | ₹30 Cr | ₹772 Cr | ₹536 Cr | ₹1,555 Cr |
Highlights:
- Debt up ₹100 Cr in FY25
- Assets almost doubled in 3 years
- Fixed Assets now ₹634 Cr (massive jump from ₹339 Cr in FY23)
8. Cash Flow – Sab Number Game Hai
| FY | CFO | CFI | CFF | Net Cash |
|---|---|---|---|---|
| FY23 | ₹29 Cr | ₹-250 Cr | ₹206 Cr | ₹-16 Cr |
| FY24 | ₹39 Cr | ₹-131 Cr | ₹92 Cr | ₹0 Cr |
| FY25 | ₹63 Cr | ₹-129 Cr | ₹83 Cr | ₹17 Cr |
TL;DR:
Operations are funding the show again. But the Capex party hasn’t stopped.
9. Ratios – Sexy or Stressy?
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| ROCE | 13% | 16% | 13% |
| ROE | 13% | — | 13% |
| Inventory Days | 83 | 88 | 73 |
| Debtor Days | 19 | 21 | 17 |
| Cash Conversion Cycle | 70 | 87 | 69 |
Summary:
Operationally efficient. Cash cycle improving. Now let’s just calm the debt monster.
10. P&L Breakdown – Show Me the Money
| FY | Revenue | Expenses | OPM | PAT | EPS |
|---|---|---|---|---|---|
| FY23 | ₹1,818 Cr | ₹1,695 Cr | 7% | ₹64 Cr | ₹2.74 |
| FY24 | ₹2,129 Cr | ₹1,938 Cr | 9% | ₹96 Cr | ₹3.32 |
| FY25 | ₹2,815 Cr | ₹2,611 Cr | 7% | ₹103 Cr | ₹3.22 |
Stable EPS. No flashy moves. Just slow-cooked profits.
11. Peer Comparison
| Company | P/E | ROE % | ROCE % | Sales (₹Cr) | PAT (₹Cr) |
|---|---|---|---|---|---|
| United Spirits | 61.5 | 21.4 | 28.7 | ₹12,069 | ₹1,630 |
| Radico Khaitan | 106.2 | 13.6 | 16.2 | ₹4,843 | ₹345 |
| Tilaknagar | 33.2 | 29.9 | 28.4 | ₹1,434 | ₹229 |
| BCL Industries | 13.4 | 13.1 | 13.3 | ₹2,815 | ₹103 |
Verdict:
One of the cheapest. But the premium club’s got better margins and better brand recall.
12. Miscellaneous – Shareholding, Promoters
| Date | Promoters | FIIs | Public |
|---|---|---|---|
| Sep ’22 | 61.36% | 0.06% | 38.57% |
| Jun ’25 | 58.03% | 0.47% | 40.53% |
What’s fishy?
- Promoters sold 3.3% in 3 years
- FIIs came, saw, and ghosted
- Public shareholding now dominant → retail frenzy incoming?
13. EduInvesting Verdict™
BCL is that quiet achiever in your investment group—slowly scaling up, expanding biodiesel capacity, and moving away from greasy edible oil. But promoter dilution, average ROCE, and a debt-heavy balance sheet keep it from being a headliner.
If the biodiesel story delivers and margins return to 10%+, the stock could re-rate. Until then, this one’s for the patient investors with industrial-strength conviction.
Fair Value Band: ₹38 – ₹50
Keep an eye out post commissioning in July.
Metadata
– Written by EduInvesting Research Team | 18 July 2025
– Tags: BCL Industries, Ethanol Stocks, Biodiesel, FMCG, Small Cap, Promoter Dilution, Real Estate Diversification, EduSatire
