Low PE Penny Stock Under Rs 50: BCL Industries Ltd Approves 100% Acquisition of Svaksha Distillery and Land Sale
DSIJ Intelligence-1 / 04 Dec 2025/ Categories: Multibaggers, Penny Stocks, Trending
The stock is up by 3.41 per cent from its 52-week low of Rs 31.68 per share and has given multibagger returns of 350 per cent in 5 years.
BCL Industries Limited's Board of Directors, meeting on December 4, 2025, approved a significant strategic move and a land sale. The company authorised its Managing Director, Mr Rajinder Mittal, to find a suitable buyer, negotiate the price, and execute all necessary documents for the sale of its land located at Hazi Ratan Link Road, Bathinda. This move appears to be aimed at unlocking value from a non-core asset. Concurrently, the Board approved the acquisition of the remaining 25 per cent stake in its subsidiary, M/s Svaksha Distillery Limited, for approximately Rs 55 crore, which will be completed by June 30, 2026.
The Svaksha Distillery Limited acquisition will make it a 100 per cent wholly-owned subsidiary of BCL Industries, consolidating control over the grain-based ethanol sector entity. Svaksha, incorporated in 2014, operates a 300 KLPD ENA/grain-based Ethanol unit in Kharagpur, West Bengal. With a paid-up capital of Rs 5.99 crore and a turnover that has rapidly grown from Rs 187 crore in FY 2022-23 to Rs 845 crore in FY 2024-25, the acquisition is expected to create synergies through cost controls and enhanced market insights, significantly strengthening BCL's leadership in the ethanol sector. The total investment outlay is approximately Rs 55 crore, with shares acquired at Rs 367 per share.
The acquisition of the final 25 per cent equity in Svaksha is categorised as a related party transaction. The transferring shareholders include Mr Pankaj Kumar Jhunjhunwala and Ms Shweta Jhunjhunwala (who is the daughter of Mr Rajinder Mittal, BCL's MD, and the spouse of Mr Pankaj Jhunjhunwala), as well as two private companies beneficially owned by Mr Pankaj Jhunjhunwala: M/s Svarna Infrastructure and Builders Private Limited and M/s E-Edit Infotech Private Limited. Despite the promoter interest, the company has ensured the acquisition is done at an "arm's length" basis, with the price certified as Fair Market Value by an Independent Chartered Accountant.
About the Company
Incorporated in 1975, BCL Industries Limited, a Mittal Group agro-processing company, is one of India's largest manufacturers and has 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.
According to the Quarterly Results, the company reported total income of Rs 720.88 crore in Q2FY26, compared to Rs 748.40 crore in Q2FY25. The net profit increased by 6 per cent to Rs 31.55 crore in Q2FY26 compared to a net profit of Rs 29.87 crore in Q2FY25. Looking at its half-yearly results, the total income increased by 54 per cent to Rs 1,543.81 crore and net profit increased by 20 per cent to Rs 65.03 crore in H1FY26 compared to H1FY25.
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 company has a market cap of over Rs 950 crore with a PE of 11x whereas the industry PE is 33x. The stock is up by 3.41 per cent from its 52-week low of Rs 31.68 per share and has given multibagger returns of 350 per cent in 5 years.
Disclaimer: The article is for informational purposes only and not investment advice.