Alcoholic Beverages has given Long Consolidation period Breakout

3 Jul

Hello everyone, i have brought a stock which has given huge breakout after 6 years consolidation. Stock name is G M Breweries Ltd,and it has set up in 1981 manufactures and markets Alcoholic Beverages such as Country Liquor (CL) and Indian-made Foreign Liquor (IMFL). The Co. has a monopoly in country liquor in the districts of Mumbai, Thane & Palghar.
It is the single largest manufacturer of country liquor in the State of Maharashtra with a sizable market share.
Market Position:-
The Company contributes about 25-30 % of the total Excise duty for country liquor in the whole of Maharashtra.

Brand Portfolio:-
The Co brands include names like G.M.Santra, G.M.Doctor, G.M.Limbu Punch, and a few more.

Manufacturing Facilities:-
The Co has a fully automatic plant at Thane, Maharashtra with a capacity to produce about 50,000 cases a day from 200 cases a day at the start. The company has capacity to
process 13.76 crore bulk litres of country liquor per annum out of which only about 53.79% has been utilized in FY24.

Difficulties:-
The Co. has been facing difficulty also due to very high levels of taxation and frequent changes in laws. Its main raw material ‘Rectified Spirit’ faced high fluctuations in price and was short in supply.

Recent Developments:-
The concentration has been mainly on country liquor in FY24, also due to competitive market conditions in the IMFL segment. The Company has been making steady progress in the business of country liquor during the past years.

Market Cap
₹ 2,118 Cr.
Current Price
₹ 927
High / Low
₹ 948 / 440
Stock P/E
14.3
Book Value
₹ 361
Dividend Yield
0.65 %
ROCE
23.5 %
ROE
19.6 %
Face Value
₹ 10.0
Industry PE
33.6
Debt
₹ 0.00 Cr.
EPS
₹ 66.5
Promoter holding
74.4 %
Intrinsic Value
₹ 716
Pledged percentage
0.00 %
EVEBITDA
11.5
Change in Prom Hold
0.00 %
Profit Var 5Yrs
12.6 %
Sales growth 5Years
5.80 %
Return over 5years
16.7 %
Debt to equity
0.00
Net profit
₹ 152 Cr.
ROE 5Yr
17.0 %
Profit growth
55.2 %
Earnings yield
9.80 %

Disclaimer:- Please always do your own analysis or consult with your financial advisor before taking any kind of trades.

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Thankyou.

10 Jul

Catatan

Stock is giving best entry to accumulate more in downlevesls. We might not gonna to get these prices back again in future.