Equity Watch

Pochiraju Industries -great potential ahead

 

 
Pochiraju Industries Ltd (PIL) , established in 1995, was initially incorporated as Pochiraju Flori Tech Ltd with the main business of cultivation and marketing of cut flowers. During the last 16 years ,the Corporate strategy of the company has changed  to create multiple drivers of growth anchored on its core competencies .The company is currently focusing on three business segments – Agri Business, Pharmaceuticals and Bio-Technology & Life Sciences. The organizational structure of the company is designed for effective management of multiple business.Presently only the Agri Businesses of cut flowers ,fruits and vegetables  is contributing Rs. 55 crores to the top line and Rs. 11 crores as PAT thus giving an eps of Rs. 6 + and P/E of less than 2.5. With the commissioning of Pharma and Bio-Tech businesses the profitability is expected to take a  quantum jump.On the Financial front, the Market cap. of the company is just about Rs. 27 crores ( CMP =Rs.13.5 and 1.9 crore shares ) while the BV is close to Rs.45.The total market cap is equivalent to the share premium account lying as cash ..The company is a debt FREE company..

Scrip Code : 532803      Company : POCHIRAJU INDUSTRIES LTD.
Type Un-Audited Un-Audited Un-Audited Un-Audited Un-Audited Un-Audited
Period Ending 30-Jun-11 31-Mar-11 31-Dec-10 30-Sep-10 30-Jun-10 31-Mar-11
No. of Months 3 3 3 3 3 12
Description Amount(Rs. million)
Net Sales / Interest Earned / Operating Income 96.76 199.87 140.76 120.05 93.72 554.39
Expenditure -67.62 -150.01 -108.72 -89.47 -66.14 -414.32
Interest -0.30 -0.51 -0.52 -0.50 -0.53 -2.06
Profit Before Depreciation and Tax 28.84 49.35 31.52 30.08 27.05 138.01
Depreciation -4.32 -4.32 -4.32 -4.32 -4.32 -17.29
Profit before Tax 24.52 45.03 27.21 25.76 22.73 120.73
Tax -1.45 -0.50 -1.05 -0.66 -1.30 -3.51
Net Profit 23.07 44.53 26.16 25.10 21.43 117.22
Equity Capital 189.07 189.07 179.07 179.07 179.07 189.07
Reserves 813.93 696.77 696.71 605.63 696.71 696.71
Basic EPS after Extraordinary items 1.22 2.49 1.46 1.40 1.20 6.54
Diluted EPS after Extraordinary items
Nos. of Shares – Public 12,584,411.00 12,584,411.00 12,584,411.00 12,584,411.00 12,584,411.00 12,584,411.00
Percent of Shares-Public 66.56 66.56 70.28 70.28 70.28 66.56
Operating Profit Margin 30.12 24.95 22.76 25.47 29.43 25.27
Net Profit Margin 23.84 22.28 18.58 20.91 22.87 21.14
Cash EPS 1.45 2.58 1.70 1.64 1.44 7.11
  Notes Notes Notes Notes Notes Notes
  Detailed Detailed Detailed Detailed
 Analysing the different businesses that the company is in and its financial position, there is a lot of scope for the company to take a quantum jump in its Revenue and PAT.

BUY  is recommended at CMP with a 2 year HOLD..

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