Buy BCL Industries, target price Rs 960: Equity99

Equity99 has buy call on BCL Industries with a target price of Rs 960. The current market price of BCL Industries is Rs 442.5. Time period given by analyst is one year when BCL Industries Ltd. price can reach defined target.

BCL Industries Ltd., incorporated in the year 1976, is a Small Cap company (having a market cap of Rs 1065.50 Crore) operating in Agro Processing sector.

BCL Industries Ltd. key Products/Revenue Segments include Sale of Products, Real Estate, Sale of services, Scrap, Other Operating Revenue for the year ending 31-Mar-2021.



Financials
For the quarter ended 30-09-2021, the company reported a Consolidated Total Income of Rs 464.19 Crore, up 2.65 % from last quarter Total Income of Rs 452.20 Crore and up 42.13 % from last year same quarter Total Income of Rs 326.61 Crore. Company reported net profit after tax of Rs 20.93 Crore in latest quarter.


Investment Rationale
Company has good ROE of 17.8% & ROCE of 17.2%. Company is available at PE of just 17.9x against Industry PE of 49.6x. Company has DE ratio of 0.49x. Company has delivered superb AT growth of 50% CAGR over last 5 years. Company`s cash conversion cycle has reduced significantly from 103 days in FY20 to 80 days in FY21. Promoters are majority stakeholders in company holding 61.36% stake.