Piccadily Agro Industries Ltd.

Piccadilly Agro Industries Ltd.

Bse Code: 530305

CMP: Rs 28

Dated : Oct 13, 2011

Not long ago, Mr Vijay Mallya, a well known liquor baron said the liquor industry is recession-proof. Probably, he meant Good times mean celebration, Bad times mean depression, but the most important thing is that liquor comes as a solution in both times.

• Piccadily Agro Industries Ltd is an India Based company incorporated in the year 1994. The company's principal activity is to manufacture sugar and their by-products.
• Piccadily Agro Industries Ltd has their plant located at Bhadson in Haryana.
• They operate in two segments, namely sugar, which is engaged in the production of sugar, molasses and bagasse and other which is engaged in the manufacturing of liquor.
• Earlier, only sugar unit was operational, however starting late FY08 the company started with it's liquor unit.
• The company was promoted by Haryana State Investment Development Corporation and well known Piccadily Hotels Pvt Ltd and their associates.
• Mr. Vinod Sharma is the Chairman of the company, who was a member of Parliament in the Rajya Sabha in the 1990s, elected on an Indian National Congress ticket. Sharma’s are well known for their financial and Political clout in the states of Haryana, Punjab and New Delhi.
• At the end of FY07, Piccadily was only into sugarcane crushing and thus into the production of raw sugar, however they had started with the setting up of liquor facility. So, till FY07 they were largely a loss making company.
• For FY08 the company had started with the liquor production and sold some 21.77 lacs cases. In that year the company made a net profit of just Rs 1.2 crores but that was on account of 5 crore loss from Sugar Division. At the end of FY08 the company had some 27 crore capital work in progress, so they were still expanding their liquor facility.
• For FY09 the company sold 28.6 lacs cases with a turnover of 48 crore. The company achieved Rs 5.4 crore profit from liquor and 3.29 crore profit from Sugar i.e. around 9 crore net profit. At the end of FY09 the company had 43 crore capital work in progress. This was again for the expansion of liquor unit.
• For FY10 the company did a turnover of Rs 82 crore from liquor unit i.e. almost a 70% increase in revenue for liquor unit over FY09. The company achieved a Profit before Tax of around 17 crore from liquor unit and assuming 33% tax, a net profit of Rs 11.39 crore, so more than 100% increase in net profit from the liquor unit of the company.
• At the end of FY10 the company has close to Rs 60 crore debt on it's books, however most of it has gone towards expansion. Between FY09 and FY10 the Gross block of the company increased by Rs 33 crore from Rs 83 crore to Rs 116 crore, while there is another Rs 13 crore capital work in progress.

As we all know demand for liquor will never end in this world so it business is going to grow many folds. .

>>>Expect at least 10-12 times returns in next 3 years time frame!!!