Pioneer Distilleries Limited

Another stock which has jumped ~38% in 15 days....makes products of Diageo and have also heard that Diageo has bought a stake....promoter stake is almost 90% could be potential multibagger.....


Your view & thoughts??

 

A very hot counter pioneer dist at 137, full yr eps 25, industry avg pe is 50 times, trading at just 5 times, pioneer is United spirit company.

 

12 Jan 2016 New Delhi: United Spirits Ltd (USL) on Monday said it has received shareholders’ nod to issue a guarantee to a bank for loan of up to Rs.100 crore to be availed by its subsidiary Pioneer Distillers.

In a filing to the National Stock Exchange of India Ltd, USL said the resolution for consent approval of the shareholders to give guarantee and/or provide security for a bank loan of up to Rs.100 crore to be availed by its subsidiary Pioneer Distillers Ltd from Standard Chartered or such other banks, was passed with a majority.

 

Reasons for providing Guarantee to PDL
The guarantee to PDL is required to be provided for the following reasons.
1. Synergy between the Company (USL) and PDL
There is unique synergy between USL and PDL which benefits USL as well as PDL. PDL has the infrastructure and
capability to produce finest quality of ENA. USL has the expertise and has extended its technical support to
achieve the same for PDL. USL has robust growth trend and require additional quantity of ENA every year. USL
and its Associate Units (TMUs) are buying entire ENA produced in PDL. In fact, PDL has the capacity to contribute
to 20% of the ENA requirement of USL in the states of Maharashtra and Karnataka. Further, PDL has also got state
of the art bottling plant to produce Indian Made Foreign Liquor (IMFL). As a part of the arrangement between PDL
and USL, PDL is producing USL brands in its bottling facility and selling the same to USL. USL`s proposed
guarantee for term loan to be taken by PDL will help PDL secure funding and meet capital expenditure and working
capital needs to run its plant efficiently. This in turn will ensure security of supply of ENA and IMFL for USL. Also,
benefits accruing to PDL due to funding support will flow back to USL as PDL is a 75% subsidiary of USL. PDL has
not defaulted in its loan repayment to the banks and hence there is reasonable assurance of future repayment by
PDL to the Bank. Hence, the provision of the Guarantee is mutually beneficial for both the companies.Since PDL
is currently referred to Board for Industrial and Financial Reconstruction (BIFR) due to erosion of its net worth, the
Guarantee will also enable the company to meet its funding requirements and will improve its operational and
financial position.

 

Good study and analysis of stock is there.

 

PIONEER DISTILLERIES LTD. - 531879 - Updates on Result of Postal Ballot

https://www.bseindia.com/xml-data/c...61BB52_3209_4C85_88B0_770BBD50A5BA_122046.pdf

 

Postal Ballot Confirm United spirits has given 100 crore credit support

 

1) executives of United Spirits Limited, holding
company of the Company (USL) deployed at the factory of the
Company (Pioneer distill)

2) Given 100 crore credit support to .Pioneer distill...

for what ???? Pioneer next multibagger

 

Pioneer Distilleries Limited 10% upper circuit