Case Study Of Pioneer Distilleries Ltd
Introduction
Pioneer Distilleries Limited, a subsidiary of United Spirits Limited is engaged in manufacturing of Alcohol. The factory is situated at Dharmabad of Nanded District of
Maharashtra.
On its growth side, the Company installed a new 30KLPD Ethanol Plant in the year 2004-05.
Further, the Company has expanded its Alcohol Plant capacity from 50KLPD to 100KLPD in the year 2006-07. In the year 2010-11 the Company has set up a 60KLPD Grain Based
Alcohol Facility and commissioned 4.725 MW Biogas based power plant. Plans are afoot to install a fresh production facility for Malt Spirit shortly. The Company also proposes to set up an IMFL Bottling Plant. Both these facilities will come on stream during the fiscal 2011-12.
Pioneer Distilleries …show more content…
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.
Pioneer Distilleries Ltd has a Z-Score of 0.14, indicating it is in Distress Zones.
This implies bankruptcy possibility in the next two years. The probability of the same has been explained in the following pages.
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Probability of Bankruptcy of Pioneer Distilleries Ltd.
For stocks, Probability of Bankruptcy is normalized value of Z-Score. For funds and ETFs it is derived from a multi-factor model developed by Macroaxis. The score is used to predict probability of a firm or a fund going into bankruptcy or experiencing financial distress within next 24 months. Unlike Z-Score, Probability of Bankruptcy is the value between 0 and 100 indicating the actual probability, the firm will be distressed in the next 2 fiscal years.
Pioneers Distilleries Probability of Bankruptcy = Normalized Z-Score = 47.66%
Companies or funds with Probability of Bankruptcy above 90% are generally considered to be high risk with a good chance of bankruptcy in the next 2 years. On the other hand entities with Probability of Bankruptcy of less than 15% will most likely experience some growth
Pioneer Distilleries Limited, a subsidiary of United Spirits Limited is engaged in manufacturing of Alcohol. The factory is situated at Dharmabad of Nanded District of
Maharashtra.
On its growth side, the Company installed a new 30KLPD Ethanol Plant in the year 2004-05.
Further, the Company has expanded its Alcohol Plant capacity from 50KLPD to 100KLPD in the year 2006-07. In the year 2010-11 the Company has set up a 60KLPD Grain Based
Alcohol Facility and commissioned 4.725 MW Biogas based power plant. Plans are afoot to install a fresh production facility for Malt Spirit shortly. The Company also proposes to set up an IMFL Bottling Plant. Both these facilities will come on stream during the fiscal 2011-12.
Pioneer Distilleries …show more content…
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.
Pioneer Distilleries Ltd has a Z-Score of 0.14, indicating it is in Distress Zones.
This implies bankruptcy possibility in the next two years. The probability of the same has been explained in the following pages.
8
Probability of Bankruptcy of Pioneer Distilleries Ltd.
For stocks, Probability of Bankruptcy is normalized value of Z-Score. For funds and ETFs it is derived from a multi-factor model developed by Macroaxis. The score is used to predict probability of a firm or a fund going into bankruptcy or experiencing financial distress within next 24 months. Unlike Z-Score, Probability of Bankruptcy is the value between 0 and 100 indicating the actual probability, the firm will be distressed in the next 2 fiscal years.
Pioneers Distilleries Probability of Bankruptcy = Normalized Z-Score = 47.66%
Companies or funds with Probability of Bankruptcy above 90% are generally considered to be high risk with a good chance of bankruptcy in the next 2 years. On the other hand entities with Probability of Bankruptcy of less than 15% will most likely experience some growth