Piccadily Agro: A Rising Star in Premium Alco-Bev and Global Expansion

Company Overview

Piccadily Agro Industries Ltd., headquartered in Haryana, India, is a diversified agro-industrial player with a growing emphasis on premium alcoholic beverages. The company operates in two primary verticals:

1. Distillery: Focused on premium alco-bev brands like Indri single malt whisky and Camikara rum.

2. Sugar: Production of crystal white sugar.

Piccadily’s fully integrated business model encompasses distilling capabilities and global branding, supported by significant malt warehousing capacity. The company is leveraging its expertise in premiumization to capitalize on macroeconomic trends in the alco-bev industry.

Financial Metrics and Performance

Market Cap

₹ 9,019 Cr.

Current Price

₹ 956

High / Low

₹ 1,020 / 260

Stock P/E

88.2

Book Value

₹ 63.9

ROCE

29.6%

ROE

30.6%

Face Value

₹ 10.0

Key Financial Data
                    Debt:
                    ₹ 209 Cr.
                
                    Reserves:
                    ₹ 509 Cr.
                
                    Sales:
                    ₹ 827 Cr.
                
                    Profit After Tax (PAT):
                    ₹ 102 Cr.

Growth Metrics

Sales Growth (3Y)

15.0%

Profit Growth (3Y)

69.5%

Quarterly Sales Variation

62.0%

Q2 FY25 Highlights

Revenue: ₹ 200.5 Cr (+63.4% YoY)

EBITDA: ₹ 43.6 Cr (+74.5% YoY)

PAT: ₹ 24.9 Cr (+109.2% YoY)

EBITDA Margin: 21.6% (up 126 bps YoY)

Key Developments

Indri single malt whisky volume grew by 443% YoY
Launched the “City Series” exclusive for Bengaluru Duty-Free
Diwali Collector’s Edition 2024 received global accolades

Strategic Initiatives and Expansion Plans

Capital Raising

₹262 Cr raised through preferential allotment to fund expansions.

Domestic and International Expansion

Newly added geographies include Chhattisgarh and Fiji
Enhanced duty-free presence in India (Ahmedabad, Amritsar) and globally

New Distilleries

Planned setups in Chhattisgarh and Scotland

Future Growth Drivers

Premium Alco-Bev Brands

Continued success of Indri single malt whisky
Upcoming premium spirits launches

Operational Efficiency

45,000+ barrels capacity
Improved EBITDA margins

Market Trends

Rising premium spirits demand
Favorable economic factors

Risks and Concerns

High P/E ratio (88.2) could indicate overvaluation
Seasonality affecting sugar vertical revenues (-25.5% YoY in H1 FY25)
Rising input costs and macroeconomic uncertainties

Valuation and Projections

Year	Revenue (₹ Cr)	EBITDA (₹ Cr)	PAT (₹ Cr)
FY26	1,100	250	150
FY27	1,300	310	190
FY28	1,500	400	240

Justification: Premiumization, expanded capacity, and international penetration will drive robust growth.

Recommendation

Given Piccadily Agro’s strong performance, strategic initiatives, and favorable industry trends, the company holds significant growth potential. However, investors should consider valuation risks.

Rating: Accumulate with a target price of ₹1,250 over 12 months.

Piccadily Agro Industries Ltd