Piccadily Agro Industries: This stock surged over 3800% in 3 years, gained 850% in a year; should you buy?

Once a penny stock, the stock has given multifold returns to its investors in the last 3 years. The stock has skyrocketed over 3825 percent in this period, from ₹10.9 in March 2021 to currently trade at ₹430.25. Meanwhile, it rallied almost 849 percent in the last 1 year, rising from ₹45.35.

In 2024 year-to-date (YTD), the stock has jumped 56 percent, giving positive returns in 3 of the 4 months so far. The stock has gained over 42 percent in April so far after an over 16 percent decline in March. Meanwhile, it rose a over 21 percent in February and over 8 percent in January 2024.

The stock hit its record high of ₹430.25 in today’s deals on April 16, 2024, skyrocketing over 852 percent from its 52-week low of ₹45.20, hit on May 19, 2023.

Piccadily Agro Industries Limited manufactures and sells sugar, molasses, bagasses, and ethanol in India. The company operates through Sugar and Distillery segments. It also provides liquor under the Malta, Marshal, Whistler, Kamet, Indri Trini, Camikara Rum, Royal Highland, and Golden Wings brand names; carbondioxide gas; extra neutral alcohol; and rectified spirit. The company was incorporated in 1994 and is based in Chandigarh, India.

Earnings

In the December quarter, Piccadily posted a net profit of ₹45.31 crore, up 558 percent from ₹6.88 crore during the previous quarter ended December 2022. Its revenue for the quarter ended December 2023 came in at ₹191 crore, surging over 58 percent versus ₹120.82 crore in the corresponding quarter last year. EBITDA stands at ₹460.75 crore in Q3FY24, up 79.46 percent from ₹256.74 crore in Q3FY23.

Brokerage view

ICICI Direct reports that the company has shown robust trailing twelve-month EPS (earnings per share) growth and has been consistently reaching new consecutive highs. Moreover, the stock has exhibited strong momentum, consistently exceeding short-, medium-, and long-term moving averages. These indicators highlight the company’s proficiency in generating profits, efficient capital utilisation, and commitment to enhancing shareholder value.

MarketsMOJO, a stock market analysis and recommendation platform, has also issued a ‘Buy’ recommendation for Piccadily Agro Industries. This endorsement is encouraging for investors, given that the company’s stock has been outperforming the sector and has exhibited promising indicators.

The impressive growth and optimistic outlook for Piccadily Agro Industries underscore the company’s robust fundamentals and effective management. With its consistent performance and promising potential for future expansion, the company emerges as a notable player to monitor within the sugar industry, said the analyst.

About penny stocks

Investing in penny stocks can be tempting due to their potential for high returns, but it’s essential to understand the significant risks involved. These stocks may not be suitable for everyone, particularly those who are risk-averse. Only individuals comfortable with high-risk investments and willing to allocate a small portion of their portfolio should consider them. Seeking advice from a financial advisor before making any decisions is highly recommended.

Penny stocks present several challenges. They often represent small, lesser-known companies with limited analyst coverage and minimal publicly available information. Additionally, the lack of transparency and access to management insights complicates investment decisions.

Furthermore, penny stocks are vulnerable to various risks such as illiquidity, high-impact costs, and difficulties associated with low trading volumes. Without compelling reasons supported by thorough research, investing in penny stocks is generally not advisable for serious, long-term investors seeking stability and growth in their portfolios.

Disclaimer: This story is for educational purposes only. Please speak to an investment advisor before making any investment decisions.

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Published: 16 Apr 2024, 12:09 PM IST