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Associated Alcohols & Breweries Ltd Stock Analysis

Small Cap
Evaluated by 899 users | BSE: 507526 | NSE: ASALCBR |
Breweries & Distilleries
Associated Alcohols and Breweries (AABL) is one of the largest distilleries in India and the flagship company of the Associated Kedia Group – a Rs. 100 crore liquor conglomerate with interests in liquor manufacturing and bottling. The company was set up by its founder Chairman --...

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Value Creation
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 4.42%6.13%5.99%8.16%11.8%15.79%16.43%20.49%19.86%26.98%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 90.7138157213298288291324399523
Y-o-Y Gr. Rt.-52.5%13.6%35.6%40%-3.7%1.2%11.4%23%31.1%
Adjusted EPS (Rs.) 0.841.431.833.235.998.149.6913.8516.727.68
Y-o-Y Gr. Rt.-70.2%28%76.5%85.5%35.9%19%42.9%20.6%65.8%
Book Value per Share (Rs.) 25.126.5328.3631.5937.4444.7553.6366.882.5108.01
Adjusted Net Profit 1.52.63.35.810.814.717.52530.250.1
Net Op. Cash Flow (Rs. Cr.) -519.417.7-1347.49.724.638.924.858.4
Debt to Cash Flow from Ops -6.92.163.6-7.030.953.971.280.551.150.15
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Associated Alcohols & Breweries Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 21.5%11.9%21.6%31.1%
Adjusted EPS 47.5%35.8%41.9%65.8%
Book Value per Share 17.623.626.330.9
Share Price 50% 37.9% 3.7% 127.4%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 3.455.556.6710.7817.3719.819.723.0122.3729.06
Operating Profit Margin (%) 6.676.637.488.4910.3713.2413.9316.1214.4714.88
Net Profit Margin (%) 1.681.872.112.743.635.126.027.737.589.58
Debt to Equity 0.770.871.241.60.660.480.330.180.190.05
Working Capital Days 2211561301078080929910395
Cash Conversion Cycle 85382020161324323734
Entity Percentage Holding
Promoters 58.45%
Institutions 0.95%
Non-Institutions 40.60%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)
Data is not available for this company.

The 5-year analysis of Associated Alcohols & Breweries Ltd's performance infers:

Associated Alcohols & Breweries Ltd earnings have grown by 35.8%, whereas share price has appreciated 37.9% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Associated Alcohols & Breweries Ltd share prices over the last 10 years. Here is what we found out:

Associated Alcohols & Breweries Ltd share price has appreciated 38.4% annually over the past ten years.

Associated Alcohols and Breweries (AABL) is one of the largest distilleries in India and the flagship company of the Associated Kedia Group – a Rs. 100 crore liquor conglomerate with interests in liquor manufacturing and bottling. The company was set up by its founder Chairman -- the Late Bhagwati Prasad Kedia. Incorporated in 1989, AABL took over the existing distillery of the promoter group in 1990 and expanded activities into manufacturing of highest grade

Associated Alcohols and Breweries (AABL) is one of the largest distilleries in India and the flagship company of the Associated Kedia Group – a Rs. 100 crore liquor conglomerate with interests in liquor manufacturing and bottling. The company was set up by its founder Chairman -- the Late Bhagwati Prasad Kedia. Incorporated in 1989, AABL took over the existing distillery of the promoter group in 1990 and expanded activities into manufacturing of highest grade liquors. Extra Neutral Alcohol is a vital ingredient in the making of an alcoholic beverage. AABL supplies this vital ingredient to many leading manufacturers under a special agreement. In the IMFL segment, the company has an understanding with reputed companies like Diageo (owner of brands like Smirnoff vodka and Johnnie Walker Scotch Whisky), Mason and Summers and Diageo-Radico. These companies buy a total of 55-60% of the total IMFL produced by AABL. The balance production is used for direct supplies to the branded suppliers across the country, apart from manufacturing its own branded products.

AABL's distillery is located in Khodigram, in the Khargone district of Madhya Pradesh. It has a present distillation capacity of 42 MLPA. The distillery is presently undergoing a series of transformations that will result in increasing its expanded capacity to 65 MLPA. AABL supplies Extra Neutral Alcohol (ENA), a vital ingredient, to many leading manufacturers under a special agreement. In the IMFL segment, the company has an understanding with reputed companies like Diageo (owner of brands like Smirnoff vodka and Johnnie Walker Scotch Whisky), Mason & Summers and Diageo-Radico. AABL has for long been recognized as one of the finest suppliers of high quality ENA in the Indian market. The company's relationships with leading international and national brands bear ample proof.

AABL has chalked out a huge greenfield expansion plan to capture domestic and international demand and serve all the segments of alcohol ranging from country liquors to IMFL. This plan includes setting up a multi-pressure ENA plant, a collector plant, a Reverse Osmosis Water Treatment Plant and a 2 MW power plant. AABL is setting up a multi pressure ENA plant. This plant will completely replace the older plant and increase its production capacity from the present 42 MLPA to 65 MLPA. The multi-pressure ENA plant cuts down the stages in the manufacture and thus improves process efficiency.

Business areas of the company:

AABL is engaged in the business of bottling vodka and scotch whisky for large reputed international brands. AABL is also one of the only liquor companies bottling single malt scotch whisky (Glen Drummond) for the leading liquor group Mason & Summers. AABL has a ten line bottling operations in two different sections. It packs about 45,000 cases per month and has a production capacity of around 42 million litres per annum (MLPA).

Brands:

  • London Bridge gin
  • James McGill whisky
  • Red & White whisky
  • Bombay Special whisky
  • Jamaican Magic rum
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