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Check Before You Invest : Allied Blenders And Distillers Ltd

BSE: 544203 NSE: ABDL ISIN: INE552Z01027
  |   Sector:  FMCG   |   Industry:  Breweries & Distilleries

Snapshot

Q.1 Which industry/sub-sector does Allied Blenders And Distillers Ltd belong to?
Allied Blenders And Distillers Ltd belongs to the FMCG sector, operating specifically within the Breweries & Distilleries segment.
Q.2 Is Allied Blenders And Distillers Ltd a good quality company?
Allied Blenders And Distillers Ltd is a average quality company, based on a somewhat consistent multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Allied Blenders And Distillers Ltd undervalued or overvalued?
Allied Blenders And Distillers Ltd appears Somewhat overvalued, as its key valuation ratios are higher than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios Current 5-year
Historic Median
Price to Earnings 56.67 -
Price to Book 9.82 -
Price to Sales 2.19 -
EV to EBITDA 31.18 -
Q.4 Is Allied Blenders And Distillers Ltd a good buy now?
Allied Blenders And Distillers Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Allied Blenders And Distillers Ltd?
Allied Blenders And Distillers Ltd revenue growth is 5.8% for FY-2025, which is above its 5-year CAGR of 3.27%, indicating faster growth.

Q.2 Gross Profit margin of Allied Blenders And Distillers Ltd?
Allied Blenders And Distillers Ltd Gross profit margin which is the profit after deduction of direct costs, is 4.1% for FY-2025, which is above its 5-year median of 1%, indicating increasing margins.

Q.3 Operating Profit Margin of Allied Blenders And Distillers Ltd?
Allied Blenders And Distillers Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 12.28% for FY-2025, which is above its 5-year median of 7.28% indicating increasing margins.

Q.4 Net Profit Margin of Allied Blenders And Distillers Ltd?
Allied Blenders And Distillers Ltd Net Profit Margin is 5.69% for FY-2025, is above its 5-year median of 0.22%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 4.1 1
Operating Profit Margin (%) 12.28 7.28
Net Profit Margin (%) 5.69 0.22

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Allied Blenders And Distillers Ltd?
Allied Blenders And Distillers Ltd Return on Asset is 6.26%, which is above its 5-year historical median of 0.25%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Allied Blenders And Distillers Ltd?
Allied Blenders And Distillers Ltd Return on capital employed is 21.31% for FY-2025, which is above its 5-year historical median of 11.85%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 13.5%, indicating value creation.

Q.7 Return on Equity (ROE) of Allied Blenders And Distillers Ltd?
Allied Blenders And Distillers Ltd Return on equity is 19.97% for FY-2025, which is above its 5-year historical median of 1.49%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of Allied Blenders And Distillers Ltd?
Allied Blenders And Distillers Ltd Cash conversion cycle is 38 days, above its 5-year historical median of 6 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 2.53 2.92
ROE (%) 19.97 1.49
ROCE (%) 21.31 11.85
Cash Conversion Cycle 38 days 6 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Allied Blenders And Distillers Ltd?
Allied Blenders And Distillers Ltd Debt-to-Equity ratio is 0.57, which is above the industry average of 0.29, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Allied Blenders And Distillers Ltd?
Allied Blenders And Distillers Ltd Debt to cash flow from operations is -1.32, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Allied Blenders And Distillers Ltd?

Q.1 Promoter shareholding and pledge status of Allied Blenders And Distillers Ltd?
Promoters hold 80.91% of the Allied Blenders And Distillers Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Allied Blenders And Distillers Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Allied Blenders And Distillers Ltd vs industry peers?
Allied Blenders And Distillers Ltd revenue CAGR is 3.27%, compared to the industry median CAGR of 15.31%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 5.8 15.3
Gross Profit Growth (%) 320.5 12.5
Operating Profit Growth (%) 88.7 13.1
Net Profit Growth (%) 2,757.1 12.5
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 2.53 0.98
ROE (%) 19.97 8.17
ROCE (%) 21.31 11.85
Cash Conversion Cycle (days) 38.41 6

Valuation & price assessment

Q.1 Stock return of Allied Blenders And Distillers Ltd over the last decade?
Over the last 1 year(s), the stock has delivered a CAGR of 79.83% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- - - 79.8%
Q.2 Valuation ratios of Allied Blenders And Distillers Ltd vs historical?
The current P/E ratio of 56.67 is higher than its historical median of , indicating that the stock is trading above its historical average valuation.
Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?
Valuation Ratios Current 5-year
Historic Median
5-year
Industry Median
Price to Earnings 56.67 - 35.77
Price to Book 9.82 - 2.22
Price to Sales 2.19 - 1.61
EV to EBITDA 31.18 - 13.44

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