BCL Industries Ltd (BCLIND) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

IFB Agro Inds.

Globus Spirits

BCL Industries

G M Breweries

Assoc.Alcohols

Sula Vineyards

Som Distilleries

Jagatjit Inds.

FratelliVineyard

Monika Alcobev

Cupid Breweries

Why is BCL Industries Ltd ?

Poor long term growth as Net Sales has grown by an annual rate of 14.36% over the last 5 years

Negative results in Mar 26

NET SALES(Q) At Rs 582.16 cr has Fallen at -20.6% (vs previous 4Q average)
PAT(Q) At Rs 23.31 cr has Fallen at -20.4% (vs previous 4Q average)
INTEREST(9M) At Rs 26.13 cr has Grown at 28.72%

With ROCE of 14.9, it has a Very Attractive valuation with a 1.1 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -18.33%, its profits have risen by 21.1% ; the PEG ratio of the company is 0.4

Despite the size of the company, domestic mutual funds hold only 0% of the company

Domestic mutual funds have capability to do in-depth on-the-ground research on companies- their small stake may signify either they are not comfortable at the price or the business

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -18.33% returns in the last 1 year, the stock has also underperformed BSE500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to BCL Industries should be less than 10%
Overall Portfolio exposure to Beverages should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Beverages)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is BCL Industries for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

BCL Industries

-18.33%

-0.46

39.67%

Sensex

-6.17%

-0.47

13.26%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

14.36%

EBIT Growth (5y)

22.60%

EBIT to Interest (avg)

5.92

Debt to EBITDA (avg)

2.59

Net Debt to Equity (avg)

0.41

Sales to Capital Employed (avg)

2.31

Tax Ratio

24.40%

Dividend Payout Ratio

8.08%

Pledged Shares

4.38%

Institutional Holding

1.34%

ROCE (avg)

14.43%

ROE (avg)

15.07%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.12

EV to EBIT

7.29

EV to EBITDA

5.76

EV to Capital Employed

1.09

EV to Sales

0.50

PEG Ratio

0.42

Dividend Yield

0.75%

ROCE (Latest)

14.92%

ROE (Latest)

12.64%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Mildly Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Bearish

Dow Theory

Mildly Bullish

OBV

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

6What is working for the Company

PAT(Latest six months)

At Rs 55.45 cr has Grown at 24.08%

DEBTORS TURNOVER RATIO(HY)

Highest at 36.23 times

CASH AND CASH EQUIVALENTS(HY)

Highest at Rs 157.49 cr

-12What is not working for the Company

NET SALES(Q)

At Rs 582.16 cr has Fallen at -20.6% (vs previous 4Q average

PAT(Q)

At Rs 23.31 cr has Fallen at -20.4% (vs previous 4Q average

INTEREST(9M)

At Rs 26.13 cr has Grown at 28.72%

PBT LESS OI(Q)

At Rs 33.40 cr has Fallen at -14.7% (vs previous 4Q average

EPS(Q)

Lowest at Rs 0.79

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Here's what is working for BCL Industries

Debtors Turnover Ratio- Half Yearly

Highest at 36.23 times and Grown

each half year in the last five half yearly periods

MOJO Watch

Company has been able to settle its Debtors faster

Debtors Turnover Ratio

Cash and Cash Equivalents - Half Yearly

Highest at Rs 157.49 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Here's what is not working for BCL Industries

Net Sales - Quarterly

At Rs 582.16 cr has Fallen at -20.6% (vs previous 4Q average)

over average Net Sales of the previous four quarters of Rs 733.07 Cr

MOJO Watch

Near term sales trend is very negative

Net Sales (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 23.31 cr has Fallen at -20.4% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 29.29 Cr

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 33.40 cr has Fallen at -14.7% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 39.15 Cr

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Interest - Nine Monthly

At Rs 26.13 cr has Grown at 28.72%

over preceding nine months period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Net Sales - Quarterly

Lowest at Rs 582.16 cr

in the last five quarters

MOJO Watch

Near term sales trend is negative

Net Sales (Rs Cr)

Earnings per Share (EPS) - Quarterly

Lowest at Rs 0.79

in the last five quarters

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (Rs)

Non Operating Income - Quarterly

Highest at Rs 3.25 cr

in the last five quarters

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating Income