IFB Agro

Its results season again and an excellent time to tweak portfolios. For us its exciting times as we get several new ideas to work upon. One such new idea is – IFB Agro listed on both BSE (507438) & NSE and trading at about Rs 105. The co has posted excellent Q1 numbers:

Particulars June 11 June 10 % Variation FY 2011
Sales 136.07 96.78 40.6% 422.82
PBIDT 15.82 3.67 331.1% 36.27
Tax 4.57 0.17 2588.2% 8.4
PAT 9.05 0.93 873.1% 17.82
EPS 11.31 1.16 22.26

IFB Agro is part of the IFB group and it has two business divisions – IMFL & Agro Marine.

IFB Agro is one of the largest producer of alcohol in Eastern India, having 6 large captive bottling plants situated in Bengal, Orissa and North East. The company has a strong position and had made sale of 5.5 lac cases of IMFL products in 2011. The value of sales of Liquor division in 2011 was 327 Cr vs 241 Cr last year.

In the Agro Marine division, the company is into exporting of Prawns and selling of Feeds business. The agro marine industry was going through a tough time till 2009, but since mid 2010, the situation has improved and the future is bright. IFB has a 48% market share in the shrimp feed business in West Bengal. In FY 2011, the company achieved a turnover of about 122 Cr vs 52.59 Cr. “IFB Royal” is the brand name of the frozen marine product of this company

The liquor business is witnessing a strong demand and hence the company has set up a new bottling plant at Panagarh, West Bengal. Company is awaiting for a couple of approvals to start the operations.

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