Pioneer gains on land bank value

MUMBAI: The Pioneer Distilleries scrip has been in the thick of action of late on talk that the company is setting up a power plant on its premises in Nanded, Maharashtra. The company is also said to own 400 acres of land (used for agricultural purposes) near its factory in Nanded. A company official declined to comment. Analysts said the stock price does not reflect the value locked in its land bank, which is estimated to be around Rs 100 crore. Recently, Pioneer Distilleries had doubled its distillery capacity to 1,00,000 litres per day from 50,000 litres per day which is expected to increase its turnover for FY08 to around Rs 90 crore, compared with around Rs 53 crore in FY07. Pioneer manufactures several kinds of alcohol for domestic liquor companies. Trading in the scrip was frozen at the upper-end of the 5% intra-day circuit filter at Rs 38.85.