IFB Agro Industries Ltd - Penny Stock Idea

[rmani84]

CMP: 104

IFB Agro Industries Ltd. manufactures alcoholic beverages, flavored liquors, extra neutral alcohol and technical alcohol. The Company sells different brands of liquor, sells fertilizer, and cattle feed. IFB Agro Industries also provides project engineering and contract services in the chemicals area.

IFB Agro is a 83 Crore penny cap stock. Its currently trading at a P/E of less than 5. Strong book value of 108 and minimal liabilities. Revenues have grown from 176 Crores to 450 Crores in the last 5 years while profits have risen from 3.31 Crores to almost 18 Crores. NPM has picked-up from less than 2% to 4% in the same period. The recent quarter results have been excellent and the stock should be bullish in short term.

[rvm123]

they had not paid dividends for quiet a long time. Y?

[rmani84]

they had not paid dividends for quiet a long time. Y?

I do expect Dividends from a well established mid-cap or large cap company.
IFB Agro is a penny cap stock and i dont consider dividends as a mandatory factor to pick penny cap stocks. Its fundamentally doing good and it may start giving dividends in time.

Cheers!

[rvm123]

after 1999 they had not declared any dividend. It is not a long time

[rmani84]

after 1999 they had not declared any dividend. It is not a long time

Agreed. It is by no means a dividend yielding stock so far

[rmani84]

IFB Agro Jun '11 sales at Rs 139.18 crore ...

Buy IFB Agro Ind; target of Rs 180: Sunidhi Securities

[rmani84]

A Good buy for long term ...

Cheers!