Result is out, decent show.
I did some scuttlebutt in Bangalore, called 4-5 big liquor stores and found that Indri single malt was availabe everywhere, I bought one for around Rs.3800 a moonth ago. I was surprised to know from the counter person that its selling better than Amrut.
Anothing thing I noticed about customer base of premium products. Both Amrut and Indri was out of stock in a shop, one customer came for Amrut and added his name in the waiting list, he never tried Indri before, I told him its good and he just casually added one Indri bottle also, without thinking twice.
In another news their newly introduced Rum was received well among the critics. Not a bad show from a new entrant in the liquour making. Though its a very limited addition product.
April 2023, New Delhi: Piccadily Distilleries is proud to announce the first ever ‘Gold Medal’ to be won by an Indian rum at the prestigious IWSC Awards 2023, recently announced in London, for their newly launched rum – Camikara. It has been awarded the gold medal in the 11- to 15-year-old category, with a stunning 95 points.
Positives:
Opportunity size is huge and they are tiny fish in a big bowl, doing the right thing and porducing top class products from scratch.
Single malt and premium liquors are an aspirational products similar to luxury cars, watches and other products and there is huge upside, specially when per capita GDP of India grows from $2700 to $5000 in this decade.
They are largest producer of quality single malt in India and supplier to other brands also, this is an additional advantage of being backward integrated and not dependent on ouside suppliers.
As they are driving towards premium products and if they succedd to get most of their profit form this segment, in the long run they could be treated and re rated from sugar to premium consumer company unlocking the full potential.
Risks:
Biggest risk for the company is volatile goverment policies, just now Karnatak govt. added 20% additinal surcharge for IMFL, so the price of Indri and other IMFL has increaed by around Rs. 500 in Bangalore.
Another risk is the FTC with UK\Britain which could reduce the import duty for premium scotch significantly from 150% to 100% and adversly affect the overall IMFL market.
Its micro cap and not much information available publicly. Hard to judge the corporate governence etc. , given they have subsidiers and associate companies like “Piccadily Sugar & Allied Industries Limited” and “Piccadily Hotels Private Limited”.
Stock has run up recently in the anticipation, valuation is anyone’s call.
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