The current market price of Associated Alcohols & Breweries Ltd. is Rs 505.85.
Time period given by analyst is one year when Associated Alcohols & Breweries Ltd. price can reach defined target.
Associated Alcohols & Breweries Ltd., incorporated in the year 1989, is a Small Cap company (having a market cap of Rs 912.46 Crore) operating in Beverages – Alcoholic sector.
Associated Alcohols & Breweries Ltd. key Products/Revenue Segments include Alcohol Potable, Sale of services and Other Operating Revenue for the year ending 31-Mar-2021.
Financials
For the quarter ended 30-06-2021, the company reported a Standalone Total Income of Rs 82.08 Crore, down -36.69 % from last quarter Total Income of Rs 129.64 Crore and up 33.73 % from last year same quarter Total Income of Rs 61.38 Crore. Company reported net profit after tax of Rs 10.15 Crore in latest quarter.
Investment Rationale
Given the compelling growth story, the brokerage believes that the stock is due for a re-rating. It initiates coverage on AABL with a BUY for a price target of INR 870 (18xFY24E EPS, ~20% discount to GSL’s current valuation) representing an upside of 105% over the next 24 months from the CMP of INR 425. The market currently is not factoring in the multifold growth to 1.8 mn cases in its owned brands and the outsourced manufacturing deal with USL (for the latter’s popular brands in the state of MP). The management expects to double the sale of its own brands over the next 5 years. Further, the brokerage expects enhanced deal making with USL to deepen the long term relationship. All these factors are potentially value accretive.
Promoter/FII Holdings
Promoters held 58.4 per cent stake in the company as of June 30, 2021, while FIIs held 1 per cent, DIIs 0 per cent and public and others 40 per cent.
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