Thursday, September 1, 2011

Piccadilly Agro Industries Ltd

Piccadilly Agro Industries Ltd. Bse Code: 530305
CMP: 34 Rs
Collect 70% at CMP and 30% at 31 levels.
Target short/medium term 54-60 rs till March 2012. Long term target of 150-180 levels in next 2-2.5 years.


Piccadilly Agro started with Sugar business long back, and struggled a lot. Last 4 years they started liquor production and expanding it very fast. As we all know demand for liquor will never end in this world so it business is going to grow many folds. They are in Haryana region and have strong presence of thr brand in that region. They have good contacts which is helping them in getting license and all process done smoothly. Results of liquor started showing in, and the demand is good and revenues growth is good. Last year EPS was 11.4 but posted weak results in June qtr hence had to witness the fall, expect good results again soon and re-rating of the counter in coming 6-12 months..So next 3-4 qtr will be good for this counter. Since it is very much corrected from highs and now in range of 30-34 we recommend 70% buying now and 30% at deeps. Dividend of 2 rs is on card which gives 6% approx dividend yield on cmp and record date is 23rd Sep 2011. Also it had shifted to liquor industry but PE re-rating is still not done, hence expect PE re-rating as per sector in coming years, So buy this counter at cmp and falls and hold for 2-3 years to get handsome returns....

For any query mail us at Multibaggerpicks.info@gmail.com
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Investment in equity shares has its own risks.Sincere efforts have been made to present the right investment perspective.The information contained herein is based on analysis and up on sources that I consider reliable. I,however,do not vouch for the accuracy or the completeness thereof.This material is for personal information and am not responsible for any loss incurred based upon it & take no responsibility whatsoever for any financial profits or loss which may arise from the recommendations above.The stock price projections shown are not necessarily indicative of future price performance.The information herein, together with all estimates and forecasts, can change without notice.