This small-cap liquor stock rallies over 100% in April; reports over 800% jump in Q4 profit

A small-cap stock from the alcoholic beverages sector has been buzzing on Dalal Street. Firstly, it delivered superlative returns to investors in April, rallying nearly 121% in just one month. Secondly, the company posted 819% year-on-year (YoY) growth in consolidated net profit at Rs 43.34 crore for the quarter ended March 2024 (Q4FY24). This is Piccadily Agro Industries, which makes the popular single malt whisky brand Indri.
 
Shares of the company surged to Rs 667.25 on April 30, 2024 against Rs 301.95 at the end of March.
 
Overall, the consolidated net profit of the company surged 391% to nearly Rs 110 crore in FY24 against Rs 22.33 crore a year ago. On the other hand, the consolidated gross sales of Piccadily Agro Industries jumped 31.37% YoY to Rs 823.25 crore.
 
Meanwhile, the Haryana-based whisky maker also informed bourses that the board of directors has approved a plan to raise Rs 1,000 crore via issue of preference shares or through the sale of shares to qualified institutional investors (QIP). The proposal will be taken to shareholders for approval.
 
Going ahead, the company has set out an aggressive roadmap for a large expansion in the malt space in India and overseas. It also envisions opening a distillery in Scotland.
 
Speaking on the results, Dharmendra Kumar Batra, Whole-Time Director, Piccadily Agro Industries Limited, said “We’re thrilled to announce a phenomenal quarter, capping off a year of exceptional performance. Surpassing 100,000 cases at record speed, we’ve earned the esteemed title of the world’s fastest-growing single malt whisky brand. This achievement is a testament to the dedication and talent of our team. Looking forward, we’re energised by our future initiatives aimed at sustaining profitable growth and creating strong value for our shareholders.”
 
Among the other major key highlights of FY24, Indri Diwali Collector’s Edition 2023 was adjudged as the ‘Best Whisky in the World’ at the Whiskies of the World Awards 2023, beating global and reputed brands. It crossed a historic milestone of selling over 100,000 cases (9 litres per case) in FY24 to become the ‘fastest growing single malt whisky in the world.’ According to Piccadily Agro Industries, the company also becomes the largest exporter of Indian single malts from India, with a 35% share of total volumes in FY24.
 
According to Nuvama Institutional Equities, India is one of the most attractive or fastest-growing alcohol markets in the world. The country is the third largest market in the world, after China and the US, by volume and likely to have 39% drinking population by 2025. The market in India is dominated by whisky followed by beer and wine.