STOCK MARKET ANALYSIS: PICCADILY AGRO INDUSTRIES LTD

Disclaimer: “This report is intended solely for study purposes. It does not provide any suggestions or recommendations regarding the buying or selling of stocks. Any investment decisions made based on this report are done at your own risk”. 

Company Overview:

Company Name: Piccadily Agro Industries Ltd.
        

Date of Incorporation: 1994
      

Subsidiaries/Part of Groups:    Subsidiaries: Portavadie Distillers & Blenders Limited, Six Trees Drinks Private Limited

       

Associate Company: Piccadily Sugar and Allied Industries Limited

       

Global or India Presence: Primarily operates in India.

        

Clients or Customers: Not specified.

LIST OF DIRECTORS
                                Name                                                       Designation
                                Sh. Harvinder Chopra                              Managing Director
                                Mr. Dharmendra Kumar Batra                 Whole time Director
                                Sh. Akhil Dada                                         Director
                                Sh. Jai Parkash Kaushik                         Director
                                Ms. Heena Gera                                      Director
                                Mr Rajeev Kumar Sanger                        Director

Business Operations:
Engaged in manufacturing sugar and distillery products at a manufacturing plant in Haryana.

Revenue Distribution: 43% from the sugar segment (Sugar, Molasses, Power, and Bagasse) and 57% from distillery products (Liquor, Malt, Carbondioxide Gas, Ethanol, and pet bottles) in FY23.

Ongoing Project: Establishing a new dual-feed distillery of 210 KLPD in Chhattisgarh under the ethanol blending program of the Government of India.

Stock Market Details:

        Listing: BSE (530305) 
       

        Market Cap: ₹3,507 Cr.           High/Low: ₹400 / ₹45.2

        

        Face Value: ₹10.0                   Net Profit (FY23): ₹22 Cr.          Debt Level: ₹163 Cr.
        

        Net Cash Flow from Operating Activity: (–₹3 Cr.) 

Shareholding Pattern:

                                        Promoters: 71%     

                                        FIIs:             Nil         

                                        DIIs:             Nil         

                                        Public:         29%

Pros:

Diversified Product Portfolio: Revenue streams from both sugar and distillery products offer diversification, reducing dependency risks.

Expansion Projects: Ongoing project in Chhattisgarh presents growth opportunities and market expansion.

Strategic Subsidiaries and Associates: Subsidiaries and associate companies contribute to revenue and strategic advantages.

Moderate Market Capitalization: With ₹3,507 Cr. market cap, the company offers growth potential and agility.

 Cons:

High Borrowings: Significant borrowings of ₹163 Cr. increase financial risks and interest expenses.

Negative Cash Flow: (-₹3 Cr.) indicates potential challenges in meeting operational and investment needs.

Limited Institutional Holding: Absence of institutional investors may indicate lower investor confidence.

Market Volatility: Wide difference between high and low prices suggests market uncertainty.

Promoter Holding: While high promoter holding provides stability, it may also lead to conflicts of interest.

Risk Factor: Investing in Piccadily Agro Industries Ltd. carries moderate to high risk due to financial leverage, operational complexities, market dynamics, and ongoing projects.

Additional Remarks: The company's strategic diversification and expansion plans show potential for growth, but investors should carefully consider its financial leverage and market volatility before making investment decisions.