Equity Watch, Uncategorized

Pochiraju takes a U turn after bottoming out last year- higher bottoms and tops in 2014

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.

Financial Results
View in (Million) Prior Period
(in Cr.) Jun-14 Mar-14 Dec-13 Sep-13 Jun-13 Mar-14
Income Statement
Revenue 36.16 47.38 25.80 24.37 22.20 119.74
Other Income
Total Income 36.16 47.38 25.80 24.37 22.20 119.74
Expenditure -28.40 -39.64 -22.12 -18.86 -16.95 -97.57
Interest -1.56 -1.48 -1.51 -1.16 -1.19 -5.35
PBDT 6.20 6.25 2.17 4.34 4.06 16.81
Depreciation -1.72 -1.72 -1.33 -1.33 -1.33 -5.71
PBT 4.48 4.54 0.83 3.01 2.73 11.11
Tax -0.10 -0.43 -0.05 0.05 -0.31 -0.74
Net Profit 4.38 4.10 0.78 3.06 2.42 10.37
Equity 18.91 18.91 18.91 18.91 18.91 18.91
EPS 2.32 2.17 0.41 1.62 1.28 5.48
CEPS 3.22 3.08 1.12 2.32
OPM % 21.45 16.33 14.25 22.59 23.67 18.51
NPM % 12.11 8.66 3.04 12.54 10.91 8.66
Detailed Detailed Detailed Detailed Detailed Detailed
Segment Segment Segment Segment Segment Segment

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..

This report has been prepared solely for information purposes and the information contained herein may not be deemed to be an investment advice. Such information is impersonal and not tailored to the investment needs of any specific person. The information contained herein is not a complete analysis of every material fact representing any company, industry or security. The views expressed may change. While the information contained herein has been obtained from sources believed to be reliable, no responsibility (or liability) is accepted for the accuracy of its contents. Investors are advised to satisfy themselves before making any investments and should consult with and rely upon their own advisors whether and how to use such information in making any investment decision. Neither the author nor his firm accepts any liability arising out of use of the above information

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