Dark horse stock of the day: Piccadily Agro jumps 20% in a weak market

Shares of Piccadily Agro Industries Limited witnessed a significant surge today. The stock opened trading at Rs 129.70 per share, marking a 12.8% increase compared to the previous day’s closing price of Rs 114.95 per share.

At the time of writing this article, the stock is trading at Rs 137.90, which is a 19.97% increase from its previous closing price, reaching the upper circuit price limit of 20%. Currently, there are no sellers willing to sell the shares in the market. Moreover, there has been a significant increase in trading volumes in the company’s stock, exceeding 4.93 times the daily average trading volumes.

Furthermore, the stock reached its 52-week high price today, with the 52-week high and low prices at Rs 137.90 and Rs 36, respectively. With a market capitalization of Rs 1,300 crore, the stock has demonstrated outstanding performance in recent periods, delivering a 100% return in just three months. Moreover, it has generated an impressive multibagger return of 1,385% over the last three years.

Company Profile

Piccadily Agro Industries Limited (PAIL), a publicly traded company, was incorporated in 1994. Spanning an expansive 168 acres of land, it commenced operations in 1996-97, focusing on the production of white crystal sugar with an initial capacity of 2500 TCD. Additionally, it had in-house facilities for generating 6 MW of power, located at Umri-Indri Road, Tehsil Indri, District Karnal, Haryana.

Subsequently, the company embarked on a path of expansion and modernisation of its Sugar Mill. It successfully increased its crushing capacity to 5000 TCD, starting from December 2, 2004, corresponding to the crushing season of 2004-2005. Further diversifying its business, the company established a Distillery Unit with an initial capacity of 60 KLPD in 2007. This capacity has since been expanded to 90 KLPD.

Financial Performance

In the June quarter of FY24, the company’s revenue from operations experienced a significant increase of 19% YoY, rising from Rs 184 crore to Rs 219 crore. The company reported an operating profit of Rs 25 crore, compared to the operating profit of Rs 18 crore in the corresponding quarter last year, resulting in an operating profit margin of 11%.

Meanwhile, the net profit of the company amounted to Rs 11 crore, representing a 38% increase compared to the profit of Rs 8 crore in the corresponding quarter of the previous year. In the last quarter of FY23, the company also reported a net profit of Rs 11 crore.

The company’s ROCE (Return on Capital Employed) and ROE (Return on Equity) stand at 12.8% and 10.2%, respectively. Furthermore, the shares are trading at a price-to-earnings ratio of 50.6 in the market.

Stock Price Chart (Weekly time frame) 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.