BUY - GM BREWERIES
CMP - Rs. 599
Target - 1: Rs. 810
Target - 2: Rs. 1020
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Technicals -
1) Bullish Flag BO, supported with high volumes.
2) Historical trend ranging from August' 15 to May' 18 resembles the current trend, indicating a bullish continuation.
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Fundamentals -
GM Breweries Limited (NSE:GMBREW) is an Indian company engaged in the manufacture and sale of alcoholic beverages, including country liquor, Indian-made foreign liquor (IMFL), and bulk alcohol. The company operates primarily in the state of Maharashtra, India, and has a market capitalization of around INR 5,570 crores (as of April 12, 2023).
1) Financial Performance:
In terms of financial performance, GM Breweries has been steadily growing its revenue over the past few years. In FY2022, the company's net revenue from operations was INR 1,229.38 crores, up from INR 925.59 crores in FY2021, which represents a growth rate of 33%. The company's net profit for FY2022 was INR 180.72 crores, up from INR 130.13 crores in FY2021, representing a growth rate of 39%. The company's profit margins have also been improving over the past few years.
2) Valuation:
In terms of valuation, GM Breweries has a price-to-earnings (P/E) ratio of around 13.27x (as of April 12, 2023), which is below the industry average of around 23.27x. This suggests that the stock may be undervalued relative to its peers. The company's price-to-book (P/B) ratio is around 4.15x, which is also below the industry average of around 6.68x.
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This is just a view, please invest at your own risk.
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CMP - Rs. 599
Target - 1: Rs. 810
Target - 2: Rs. 1020
.
.
Technicals -
1) Bullish Flag BO, supported with high volumes.
2) Historical trend ranging from August' 15 to May' 18 resembles the current trend, indicating a bullish continuation.
.
.
Fundamentals -
GM Breweries Limited (NSE:GMBREW) is an Indian company engaged in the manufacture and sale of alcoholic beverages, including country liquor, Indian-made foreign liquor (IMFL), and bulk alcohol. The company operates primarily in the state of Maharashtra, India, and has a market capitalization of around INR 5,570 crores (as of April 12, 2023).
1) Financial Performance:
In terms of financial performance, GM Breweries has been steadily growing its revenue over the past few years. In FY2022, the company's net revenue from operations was INR 1,229.38 crores, up from INR 925.59 crores in FY2021, which represents a growth rate of 33%. The company's net profit for FY2022 was INR 180.72 crores, up from INR 130.13 crores in FY2021, representing a growth rate of 39%. The company's profit margins have also been improving over the past few years.
2) Valuation:
In terms of valuation, GM Breweries has a price-to-earnings (P/E) ratio of around 13.27x (as of April 12, 2023), which is below the industry average of around 23.27x. This suggests that the stock may be undervalued relative to its peers. The company's price-to-book (P/B) ratio is around 4.15x, which is also below the industry average of around 6.68x.
.
.
This is just a view, please invest at your own risk.
.
.
Follow me for more!