Ethanol blending stock BCL Industries zooms over 7%. Here’s why | Stock Market News
Source: Live Mint
Shares of smallcap stock BCL Industries rallied over 7% in trade on Wednesday, February 19, after it received an order worth ₹134.87 crore for the supply of ethanol to oil marketing companies (OMCs).
The shares of BCL Industries traded in the green throughout the session but witnessed a spike in the last few minutes of the trade following the order book update.
Order details
The company informed exchanges in a filing today that BCL Industries Limited along with its subsidiary Svaksha Distillery has been allocated with additional quantity of 23,054 KL of ethanol to be supplied against FCI rice as raw material to OMCs. The total order value stands at ₹134.87 crore, the filing showed.
Out of the total order, BCL Industries will supply 14,302 KL (worth ₹83.67 crore) and Svaksha Distillery will supply 8,752 KL (worth ₹51.20 crore).
The company said it had participated in a tender floated by OMCs in January 2025 for the supply of ethanol at their various locations across the country.
The Government of India (GoI) and OMCs are aggressively promoting the blending of ethanol in motor spirit (petrol) with a view to reduce the carbon footprint and conserve foreign exchange by reducing the import of crude oil.
The above order is in addition to the existing order of 18,2485 KL received by the group in the month of October 2024.
Shares spike on order update
Shares of BCL Industries spiked 7.64% to settle at the day’s high of ₹37.35 per share. Despite today’s rise, the stock trades 55% below its 52-week high of ₹84.20, hit in February last year. Meanwhile, the stock’s 52-week low stands at ₹34.50, which it scaled yesterday.
The stock has declined 55.8% in the last one year, while it has lost 39% in the past six months. Even on a one-month basis, the performance has been dismal, with the stock losing 26% of its value.
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