Financial Weekly

SMART 14th April to 20th April 2019 12

INVESTMENT

SMART
BUY OF THE WEEK
Dark Horse

BCL Industries
(524332) (99.60) (Face Value Rs.10)
Established in 1976, BCL has business interests in solvent extraction, edible oil and distillation
with an annual turnover of more than Rs.850 crore. BCL has gained a leadership position in the oil
and rice industry, especially in North India. Today, Company own one of the largest vertically
integrated agro-based edible oil complexes established in India. Company sells its edible oil un-
der various brands and our flagship brands Particulars 9 Months Ended
are Homecook, Do Khajoor and Murli. They 9MFY19 9MFY18 % Var.
also do contract manufacturing of edible oil
Sales 648.28 620.12 4.5
for companies like Cargill, Godrej Agrovet
Ltd, etc. Company diversified its core busi-
PBT 42.18 15.62 170
ness by partnering with Pioneer Industries PAT 34.40 13.71 151
Limited in 2006 to operate a distillation plant manufacturing grain-based ENA/Ethanol alcohol.
BCL emerged as the only company to manufacture high quality wheat gluten. The business was
further expanded by setting up another state-of-the-art grain-based distillery in the village of Sangat
Kalan. In April 2017, the 100 KLPD capacity of this plant was doubled to 200 KLPD and it is still
operating at optimum utilisation levels. Company has also diversified in real estate business and
completed 2 real estate projects so far.
The Company's equity is just Rs.17.43crore while company has reserve of around Rs.157.24crore.
Its share book value stood at Rs.100.19 as at 31st December 2018. Promoters hold 60.24%, Ace
investor Nikhil Vora hold 1.24%, Subramanian P hold 2.10% while investing public hold 36.42%
stake in the company.
During 9MFY19, its PAT zoomed 151% to Rs.34.4crore from Rs.13.71crore in 9MFY18 on higher
sales of Rs.648.28crore fetching an EPS of Rs.19.76. Its 9MFY19 PAT is 93% higher than the PAT
recorded for FY18. At CMP, BCL trades at P/E ratio of just 5x.
Investors can accumulate this stock with a stop loss of Rs.86. It may give very good re-
turns in medium to long term.

Cont...
Financial Weekly

SMART 14th April to 20th April 2019 13

INVESTMENT

Cineline India
(532807& NSE) (45.4) (Face Value Rs.5)
Incorporated in 2002, formally known as Cinemax Properties Mumbai based Cineline India Lim-
ited, together with its subsidiaries, engages in the real estate business in India. The company
operates in two segments, Retail Space and Windmill. It is involved in the construction of malls for
sale and/or lease to third parties. The company owns and leases nine multiplexes to PVR Cin-
emas; and owns and operates the Eternity
Particulars 9 Months Ended
mall, as well as provides car-parking, mainte-
9MFY19 9MFY18 % Var.
nance, and advertising services at the Eter-
Sales 26.61 24.15 10.2 nity mall located in Nagpur. In addition, it gen-
PBT 11.62 9.82 18.3 erates renewable energy through a windmill
PAT 8.18 7.10 15.2 with capacity of 0.6 MWA located at Viswada

in Gujarat; and a windmill with capacity of 1.6 MWA located at Revangaon in Maharashtra.
It has an equity base of just Rs.14cr. that is supported by reserves of around Rs.94.04 cr. It has
a share book value of Rs.57.39 & price to book value ratio works out at Rs.0.75.
The promoter holding in CIL is 69.27% while the investing public holds 30.73% stake in the
company.
For 9MFY19, it posted 15.21% higher PAT of Rs.8.18crore on 10.18% higher income of
Rs.26.61crore and an EPS of Rs.2.93. Currently, the stock trades at a P/E of 10.6x which is cheap-
est against PVR & INOX LEISURE. Stock is available 50% discount against its 52 week high rate
of Rs.88.
Investors can accumulate this stock with a stop loss of Rs.35. It may give very good re-
turns in medium to long term.