Check Before You Invest : Globus Spirits Ltd

Q: Which industry/sub-sector does Globus Spirits Ltd belong to?

Globus Spirits Ltd belongs to the FMCG sector, operating specifically within the Breweries & Distilleries segment.

Q: Is Globus Spirits Ltd a good quality company?

Globus Spirits 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: Is Globus Spirits Ltd undervalued or overvalued?

Globus Spirits Ltd appears Fair, as its key valuation ratios are in line with 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. Price to Earnings, Current: 30.61, Historic Median: 22.40. Price to Book, Current: 2.65, Historic Median: 2.92. Price to Sales, Current: 0.8, Historic Median: 0.90. EV to EBITDA, Current: 12.28, Historic Median: 11.35

Q: Is Globus Spirits Ltd a good buy now?

Globus Spirits 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

Q: Revenue growth of Globus Spirits Ltd?

Globus Spirits Ltd revenue growth is 5% for FY-2025, which is below its 5-year CAGR of 16.87%, indicating slower growth.

Q: Gross Profit margin of Globus Spirits Ltd?

Globus Spirits Ltd Gross profit margin which is the profit after deduction of direct costs, is 3.3% for FY-2025, which is below its 5-year median of 8.4%, indicating decreasing margins.

Q: Operating Profit Margin of Globus Spirits Ltd?

Globus Spirits Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 6.07% for FY-2025, which is below its 5-year median of 11.64% indicating decreasing margins.

Q: Net Profit Margin of Globus Spirits Ltd?

Globus Spirits Ltd Net Profit Margin is 0.98% for FY-2025, is below its 5-year median of 5.79%, indicating decreasing margins. Profitability Metrics. Gross Profit Margin (%), Current: 3.3, Historic Median: 8.4. Operating Profit Margin (%), Current: 6.07, Historic Median: 11.64. Net Profit Margin (%), Current: 0.98, Historic Median: 5.79

Q: Return on Asset of Globus Spirits Ltd?

Globus Spirits Ltd Return on Asset is 1.28%, which is below its 5-year historical median of 8.42%, indicating deteriorated asset utilization efficiency.

Q: Return on capital employed (ROCE) of Globus Spirits Ltd?

Globus Spirits Ltd Return on capital employed is 5.84% for FY-2025, which is below its 5-year historical median of 18.69%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Check Before You Invest : Globus Spirits Ltd

Snapshot

Q.1 Which industry/sub-sector does Globus Spirits Ltd belong to?

Globus Spirits Ltd belongs to the FMCG sector, operating specifically within the Breweries & Distilleries segment.

Q.2 Is Globus Spirits Ltd a good quality company?

Globus Spirits 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 Globus Spirits Ltd undervalued or overvalued?

Globus Spirits Ltd appears Fair, as its key valuation ratios are in line with 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	30.61	22.40
Price to Book	2.65	2.92
Price to Sales	0.8	0.90
EV to EBITDA	12.28	11.35

Q.4 Is Globus Spirits Ltd a good buy now?

Globus Spirits 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 Globus Spirits Ltd?

Globus Spirits Ltd revenue growth is 5% for FY-2025, which is below its 5-year CAGR of 16.87%, indicating slower growth.

Q.2 Gross Profit margin of Globus Spirits Ltd?

Globus Spirits Ltd Gross profit margin which is the profit after deduction of direct costs, is 3.3% for FY-2025, which is below its 5-year median of 8.4%, indicating decreasing margins.

Q.3 Operating Profit Margin of Globus Spirits Ltd?

Globus Spirits Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 6.07% for FY-2025, which is below its 5-year median of 11.64% indicating decreasing margins.

Q.4 Net Profit Margin of Globus Spirits Ltd?

Globus Spirits Ltd Net Profit Margin is 0.98% for FY-2025, is below its 5-year median of 5.79%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	3.3	8.4
Operating Profit Margin (%)	6.07	11.64
Net Profit Margin (%)	0.98	5.79

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Globus Spirits Ltd?

Globus Spirits Ltd Return on Asset is 1.28%, which is below its 5-year historical median of 8.42%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Globus Spirits Ltd?

Globus Spirits Ltd Return on capital employed is 5.84% for FY-2025, which is below its 5-year historical median of 18.69%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.7 Return on Equity (ROE) of Globus Spirits Ltd?

Globus Spirits Ltd Return on equity is 2.55% for FY-2025, which is below its 5-year historical median of 14.74%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Globus Spirits Ltd?

Globus Spirits Ltd Cash conversion cycle is 13 days, above its 5-year historical median of 5 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)	1.82	1.86
ROE (%)	2.55	14.74
ROCE (%)	5.84	18.69
Cash Conversion Cycle	13 days	5 days

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

Q.9 Debt to Equity ratio of Globus Spirits Ltd?

Globus Spirits Ltd Debt-to-Equity ratio is 0.53, 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 Globus Spirits Ltd?

Globus Spirits Ltd Debt to cash flow from operations is 7.46, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Globus Spirits Ltd?

Q.1 Promoter shareholding and pledge status of Globus Spirits Ltd?

Promoters hold 50.58% of the Globus Spirits Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Globus Spirits Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Globus Spirits Ltd vs industry peers?

Globus Spirits Ltd revenue CAGR is 16.87%, compared to the industry median CAGR of 15.31%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	5	15.3
Gross Profit Growth (%)	-25.5	12.5
Operating Profit Growth (%)	-9.9	13.1
Net Profit Growth (%)	-74.2	12.5

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	1.82	0.98
ROE (%)	2.55	8.17
ROCE (%)	5.84	11.85
Cash Conversion Cycle (days)	13.06	6

Valuation & price assessment

Q.1 Stock return of Globus Spirits Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 31.4% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	31.4%	26.2%	5.2%	5.5%

Q.2 Valuation ratios of Globus Spirits Ltd vs historical?

The current P/E ratio of 30.61 is higher than its historical median of 22.40, 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	30.61	22.40	35.77
Price to Book	2.65	2.92	2.22
Price to Sales	0.8	0.90	1.61
EV to EBITDA	12.28	11.35	13.44

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Check Before You Invest : Globus Spirits Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

Check more companies

Check trending companies

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