IFB AGRO INDUSTRIES LIMITED
I have bought 500 shares of IFB Agro Industries Limited at ₹392. Should I hold it or sell it off? - Ankush Mundra
IFB Agro Industries Limited manufactures alcohol, engages in bottling of branded alcoholic beverages, besides processed and packed marine foods for both domestic and foreign markets. The company operates in segments including spirit, liquor and spirituous beverages, as well as marine products. The company’s spirit, liquor and spirituous beverages segment manufactures extra neutral alcohol (ENA), rectified spirit and Indian made Indian liquor.
The company’s marine related business engages in the marine product processing for sale in export and domestic markets and marine feed trading as well. The company has a grain-based distillery at Noorpur in West Bengal with a capacity of about 120,000 litres ENA per day.
On the financial front, the revenue of IFB Agro Industries rose 23.01 per cent to ₹336.34 crore in the first quarter of FY18 from ₹273.43 crore in the corresponding quarter of FY17. However, the company’s PBIDT decreased 24.83 per cent to ₹12.87 crore in Q1FY18 on a year-on-year basis.
The company’s profit after tax stood at ₹7.27 crore for Q1FY18, down by 28.50 per cent from ₹10.17 crore in Q1FY17.
On an annual basis, the company’s revenue increased 32.10 per cent to ₹807.05 crore in FY17 from ₹610.93 crore in the previous fiscal. The PBDIT of the company fell 5.95 per cent to ₹49.34 crore for FY2017 on a year-on-year basis. The company’s profit after tax increased 9.31 per cent to ₹32.06 crore in FY17 on a yearly basis.
The company maintained a TTM PE of 12.21x, whereas its peers such as GRM Overseas stood at 7.53x and KSE at 17.31x, while the industry’s TTM PE stood at 47.97x. The stock is likely to trade lower, hence we recommend our reader-investors to Book Profit.