|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 18 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 the Agri Businesses of cut flowers ,fruits and vegetables and Pharma is contributing Rs. 120 crores to the top line and Rs. 11 crores as PAT thus giving an eps of Rs. 5.5 and P/E of less than 3.5@ CMP of Rs.18. With the commissioning of Pharma and Bio-Tech businesses when in full swing the profitability is expected to take a quantum jump.On the Financial front, the Market cap. of the company is just about Rs.36 crores ( CMP =Rs.18.5 and 1.9 crore shares ) while the BV is close to Rs.60.
Investment is recommended on declines @ Rs. 15-16 as the share price has jumped by 25% during the last one week after declaration of June quarterly results..
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