ABDL - Ranveer's next love after DEEPIKA :)
Hello, Everyone I hope you all will be doing well in your life and investing. Here I have brought you a Black Friday deal of a liquor stock. Ranveer Singh Partners with this Liquor company, Allied Blenders & Distillers Ltd (ABDL) is the name of the stock. CMP is 330. Its IPO price was 280. And it's above that price. Strong support is 300. Strong Resistance is 344 to 347. Once it will close above 345 chances of 400+. Stoploss is 300, Mostly it will not break that.
About
Incorporated in 2008, Allied Blenders and Distillers is an Indian-made foreign liquor company offering four categories: whisky, brandy, rum, and vodka.
Key Points
Leading Liquor Manufacturer - Allied Blenders and Distillers is the third-largest Indian-made foreign liquor (IMFL) company by annual sales volumes from FY14 to FY22 with 11.8% market share in the Indian whisky market in FY23
Product Portfolio
As of December 31, 2023, its product portfolio comprised 16 major brands across five main categories of IMFL, i.e., whisky, brandy, rum, vodka, and gin. The company also sells packaged drinking water under Officer’s Choice, Officer’s Choice Blue, and Sterling Reserve brands.
Brand Portfolio
Premium
1. Sterling Reserve Blend 10 Whisky
2. Kyron Premium Brandy
3. Sterling Reserve Premium Cellar Brandy
4. X&O Barrel Premium Whisky
Semi-Premium
1. Sterling Reserve Blend 7 Whisky
2. Sterling Reserve B7 Whisky Cola Classic Mix
3. Srishti Premium Blended Whisky
Deluxe
1. Officer’s Choice Blue Whisky
2. Jolly Roger Rum
3. ICONiQ White International Whisky
Mass Premium
1. Officer’s Choice Whisky
2. Officer’s Choice Star
3. Officer’s Choice Brandy
4. Officer’s Choice Rum
5. Class 21 Vodka
6. Cheval Fort Cafe Rum
Millionaire Brands - Brands like Officer’s Choice Whisky, Sterling Reserve, Officer’s Choice Blue, and ICONiQ Whisky are classified as 'Millionaire Brands', indicating that each has sold over a million 9-litre cases in a single year.
Revenue Bifurcation - Product wise 9FY24
Whisky - 96.1%
Brandy - 2.64%,
Rum - 1.14%
Vodka - 0.12%
PAN India Presence - It is one of only four spirits companies in India with a pan-India sales and distribution footprint. As of March 31, 2023, its products were sold in 79,329 retail outlets across 30 states and union territories.
Sharekhan View Point- 3R Recommendation:-
Allied Blenders and Distillers Ltd
Strong Q2
Rating: POSITIVE
(CMP:329 , Upside Potential:450)
Company Description
ABDL is the largest IMFL company and the third largest IMFL company in India in terms of annual sales volumes between FY2014-FY2022. As of June 30, 2024, the company’s product portfolio comprised 17 major brands of IMFL across five main categories, i.e. whisky, brandy, rum, vodka, and gin. A few of the company’s brands such as Officer’s Choice Whisky, Sterling Reserve, Officer’s Choice Blue, and Iconiq Whisky are millionaire brands. Over the years, ABDL has established market leadership in the alcoholic beverages market in India with a market share of 8.2% in the IMFL market by sales volumes in FY2023. As of June 30, 2024, ABDL’s products were retailed across over 79,000 retail outlets across 30 states and union territories in India. In addition, ABDL also exports its products to 14 international markets, including countries in the Middle East, North America, Africa, Asia, and Europe.
Key Investment Arguments
•Allied Blenders and Distillers Limited’s (ABDL’s) Q2FY2025 numbers were strong beating ours as well as street’s
expectations. Net revenues grew by 2% y-o-y (~15% q-o-q) to Rs. 868 crore and OPM rose by 354 bps y-o-y to 11.9%; PAT
grew by 4.2x y-o-y to Rs. 48 crore.
•It plans to do a capex of Rs. 525 crore (spread over 3 years) to enhance the backward integration capabilities. This will help in improving OPM by 300 bps over the next three years. Investment has potential to deliver mid-to-high teen RoCE.
•Telangana overdue of Rs. 350 crore will be reduced substantially by Q4. It will help in further reducing the net debt by FY2025-end.
•The stock is trading at 47x, 29x and 24x its FY25E, FY26E and FY27E earnings, respectively. We maintain our Positive view with an unchanged PT of Rs. 450.
This is just to boost my confidence. No Suggestions for buying.
Kindly follow me ON TRADINGVIEW and Boost my idea if you like. THANK YOU.
Disclosure: I am not SEBI registered. The information provided here is for educational purposes only. I will not be responsible for any of your profit/loss with these suggestions. Consult your financial advisor before making any decisions.
About
Incorporated in 2008, Allied Blenders and Distillers is an Indian-made foreign liquor company offering four categories: whisky, brandy, rum, and vodka.
Key Points
Leading Liquor Manufacturer - Allied Blenders and Distillers is the third-largest Indian-made foreign liquor (IMFL) company by annual sales volumes from FY14 to FY22 with 11.8% market share in the Indian whisky market in FY23
Product Portfolio
As of December 31, 2023, its product portfolio comprised 16 major brands across five main categories of IMFL, i.e., whisky, brandy, rum, vodka, and gin. The company also sells packaged drinking water under Officer’s Choice, Officer’s Choice Blue, and Sterling Reserve brands.
Brand Portfolio
Premium
1. Sterling Reserve Blend 10 Whisky
2. Kyron Premium Brandy
3. Sterling Reserve Premium Cellar Brandy
4. X&O Barrel Premium Whisky
Semi-Premium
1. Sterling Reserve Blend 7 Whisky
2. Sterling Reserve B7 Whisky Cola Classic Mix
3. Srishti Premium Blended Whisky
Deluxe
1. Officer’s Choice Blue Whisky
2. Jolly Roger Rum
3. ICONiQ White International Whisky
Mass Premium
1. Officer’s Choice Whisky
2. Officer’s Choice Star
3. Officer’s Choice Brandy
4. Officer’s Choice Rum
5. Class 21 Vodka
6. Cheval Fort Cafe Rum
Millionaire Brands - Brands like Officer’s Choice Whisky, Sterling Reserve, Officer’s Choice Blue, and ICONiQ Whisky are classified as 'Millionaire Brands', indicating that each has sold over a million 9-litre cases in a single year.
Revenue Bifurcation - Product wise 9FY24
Whisky - 96.1%
Brandy - 2.64%,
Rum - 1.14%
Vodka - 0.12%
PAN India Presence - It is one of only four spirits companies in India with a pan-India sales and distribution footprint. As of March 31, 2023, its products were sold in 79,329 retail outlets across 30 states and union territories.
Sharekhan View Point- 3R Recommendation:-
Allied Blenders and Distillers Ltd
Strong Q2
Rating: POSITIVE
(CMP:329 , Upside Potential:450)
Company Description
ABDL is the largest IMFL company and the third largest IMFL company in India in terms of annual sales volumes between FY2014-FY2022. As of June 30, 2024, the company’s product portfolio comprised 17 major brands of IMFL across five main categories, i.e. whisky, brandy, rum, vodka, and gin. A few of the company’s brands such as Officer’s Choice Whisky, Sterling Reserve, Officer’s Choice Blue, and Iconiq Whisky are millionaire brands. Over the years, ABDL has established market leadership in the alcoholic beverages market in India with a market share of 8.2% in the IMFL market by sales volumes in FY2023. As of June 30, 2024, ABDL’s products were retailed across over 79,000 retail outlets across 30 states and union territories in India. In addition, ABDL also exports its products to 14 international markets, including countries in the Middle East, North America, Africa, Asia, and Europe.
Key Investment Arguments
•Allied Blenders and Distillers Limited’s (ABDL’s) Q2FY2025 numbers were strong beating ours as well as street’s
expectations. Net revenues grew by 2% y-o-y (~15% q-o-q) to Rs. 868 crore and OPM rose by 354 bps y-o-y to 11.9%; PAT
grew by 4.2x y-o-y to Rs. 48 crore.
•It plans to do a capex of Rs. 525 crore (spread over 3 years) to enhance the backward integration capabilities. This will help in improving OPM by 300 bps over the next three years. Investment has potential to deliver mid-to-high teen RoCE.
•Telangana overdue of Rs. 350 crore will be reduced substantially by Q4. It will help in further reducing the net debt by FY2025-end.
•The stock is trading at 47x, 29x and 24x its FY25E, FY26E and FY27E earnings, respectively. We maintain our Positive view with an unchanged PT of Rs. 450.
This is just to boost my confidence. No Suggestions for buying.
Kindly follow me ON TRADINGVIEW and Boost my idea if you like. THANK YOU.
Disclosure: I am not SEBI registered. The information provided here is for educational purposes only. I will not be responsible for any of your profit/loss with these suggestions. Consult your financial advisor before making any decisions.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.