First con call scheduled by Piccadily. Extremely positive step. The stock is due for a re-rating now or Radico / USL are due for a de-rating.. there is no other way to explain the story in next 12 months
For ref - Piccadily and Radico are neck to neck in their overall luxury sale portfolio (inching towards Rs 500 Cr revenue in FY27)
Expect analyst coverage and IC reports coming out soon, followed by FII stake to a certain degree
Strong y-o-y results foremost.
Surprisingly, auditor resignation is mentioned at the same time and in same filing. Anything to be cautious of, what do seniors make of this?
No.Non renewal of peer review is clearly mentioned as the reason for resignation. It means that the erstwhile auditors peer review certificate has not been renewed making them ineligible to continue .Unless an audit farm has it, they can’t legally operate as an auditor and actually SEBI also mandates that statutory auditors must have peer review certificate when auditing listed companies.So that resignation is actually a forced resignation because of professional non-compliance of the auditors themselves.Nothing much to do with Piccadily .
Any key takeaways from con call? Distillery growth does not seem to be very impressive..
BULLET POINTS
Greenfield Chattisgarh plant monetisation starts from May 2026 itself. Barrels are in various different phases of maturation, incremental revenue growth will be seen instead of all at once. Full capacity utilisation will be seen in next 6 months.
CSD canteen stores contribute to roughly 30% of revenue, export market roughly 25% and rest 45% is domestic. Focus is on to increase export revenue to 50%
Specific product wise revenue breakdown and volume growth not given.
Change in audit firm because of re-alignment of partners at their side. Company chose to stick with specific partner (Mr Mangwa) who understands business well instead of firm.
Company eyes 60% growth in alco-bev business in FY27 (mainly through IMFL). Previously there were supply issues which now has been ironed out.
Company eyes 3-4x revenue and value creation from current levels in next 3 years.
Exploring inorganic expansion- both on domestic and international side.
Scotland facility land acquired. Construction will be completed in coming couple years.
New products are in pipeline- my guess is on gin.
Drop in EBITDA in previous quarter is because of sugar business, plan to demerge it already filed.
Majority of capex already done - (purchase of barrels). Capex for rest of year would be under 25 crores
Multiple questions from Hiren Ved’s Alchemy was nice to hear, Hiren himself was on call. Finally we can expect some institutional stake. All points are from top of my head, ignore mistakes.
Disclaimer- invested and biased, major chunk of portfolio.
Some of the points that I found interesting from the concall :
The demerger proposed should make Piccadilly Agro a pure play alcobev company with a large bias towards super premium brands . If the revenue growth projected plays out this can be an interesting play.
Disclosure: Invested recently with an initial allocation.
In the presentation, they have also mentioned that a blended whiskey in luxury segment (2000-5000) is going to be launched soon.
Similarly, our profitability also grew by 79%, which is PBT from INR35 crores to INR63 crores. And this is based on the strong premiumization and our sale of our premium products and leveraging few costs. On a standalone basis, revenue grew by 33% year-on-year basis from INR270 crores to INR364 crores. Our PBT grew by 17% from INR54 crores to INR63 crores and our PAT grew by 14% from 40 crores to INR46 crores.
Can you pls tell me, Q4 Fy 25, Distillery EBIT was 52.75 cr, then how come they are stating it was 35cr??
Any thoughts on why there isn’t any institutional holding? Is it just because of the size?
Please read in depth about the Promoter. You will find your answer.
