Globus Spirits Ltd Stock Analysis

BSE: 533104 | NSE: GLOBUSSPR | Breweries & Distilleries | Small Cap

BSE Share Price 29-Nov-2022 18:01
800.95 15.45 (1.97%)

DeciZen - Make an Informed Decision on Globus Spirits

Overall Rating

1. Quality

2. Valuation

Somewhat overvalued

3. Price Trend

Globus Spirits Price Chart

P/E Ratio (SA) :
16.66
Market Cap :
2,307 Cr.
52-wk low :
700
52-wk high :
1,760
Bole Toh?

1. Is Globus Spirits Ltd a good quality company?

Past 10 year’s financial track record analysis by Moneyworks4me indicates that Globus Spirits Ltd is a below average quality company.

2. Is Globus Spirits Ltd undervalued or overvalued?

The key valuation ratios of Globus Spirits Ltd's currently when compared to its past seem to suggest it is in the Somewhat overvalued zone.

3. Is Globus Spirits Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Weak which suggest that the price of Globus Spirits Ltd is likely to Fall in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of Globus Spirits:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

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.
Globus Spirits Ltd has not performed well majority of the past ten years indicating its past ten year financial track record is not good

Value Creation

Value Creation Index Colour Code Guide

Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
ROCE % 9.8%3.5%3.5%4.3%4.4%4%7.7%11.8%22.2%22.7%-
Value Creation Index -0.3-0.8-0.8-0.7-0.7-0.7-0.5-0.20.60.6-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 5024975867077748559841,1631,2311,5792,516
YoY Gr. Rt. %--1.1%18%20.7%9.6%10.4%15.1%18.2%5.8%28.3%-
Adj EPS 14.93.72.34.25.42.210.620.649.964.948.1
YoY Gr. Rt. %--75.3%-37.6%85.2%26.7%-58.3%371.9%94.5%142.9%30%-
BVPS (₹) 120.5120.7123.3126.2129.3131.7142.4162.8205.1268.1285.7
Adj Net Profit 34.28.46.612.215.56.530.559.2144187138
Cash Flow from Ops. 78.633.960.675.371.455.861.3154142219-
Debt/CF from Ops. 1.132.43.43.84.53.81.21.30.8-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 13.6%15.3%17.1%28.3%
Adj EPS 17.8%64.6%83.1%30%
BVPS 9.315.723.530.7
Share Price 20.6% 44.1% 78.9% -26.6%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
Return on Equity % 11.42.41.93.44.21.77.713.527.127.417.4
Op. Profit Mgn % 149.18.49.97.28.19.611.420.720.810.2
Net Profit Mgn % 6.81.71.11.720.83.15.111.711.85.5
Debt to Equity 0.30.30.40.70.70.70.60.40.30.20.2
Working Cap Days 103111797368826854576173
Cash Conv. Cycle -10-9-16-12-15-412-7-519

Recent Performance Summary

Sales growth is growing at healthy rate in last 3 years 17.07%

Net Profit is growing at healthy rate in last 3 years 83.12%

Sales growth is good in last 4 quarters at 22.49%

Return on Equity has declined versus last 3 years average to 17.40%

Latest Financials - Globus Spirits Ltd.

Standalone Consolidated
TTM EPS (₹) 48.1 61.7
TTM Sales (₹ Cr.) 2,516 1,931
BVPS (₹.) 285.7 222.6
Reserves (₹ Cr.) 794 612
P/BV 2.80 3.59
PE 16.66 12.93
From the Market
52 Week Low / High (₹) 700.00 / 1760.00
All Time Low / High (₹) 39.25 / 1760.00
Market Cap (₹ Cr.) 2,307
Equity (₹ Cr.) 28.8
Face Value (₹) 10
Industry PE 56.5

Management X-Ray of Globus Spirits :

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of Globus Spirits

Adj EPS (Rs.)
Sales (Cr.)
ROE (%)
ROCE (%)

News

Globus Spirits Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of Globus Spirits on 29-Nov-2022 18:01 is : 801.0.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 29-Nov-2022 18:01 the market cap of Globus Spirits stood at ₹ 2,307.
The latest PE ratio of Globus Spirits as of 29-Nov-2022 18:01 is 16.66.
The latest PB ratio of Globus Spirits as of 29-Nov-2022 18:01 is 2.80
The 52-week high of Globus Spirits is ₹ 1,760 and the 52-week low is ₹ 700.0.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue / sales of Globus Spirits is ₹ 2,516 ( Cr.) .

About Globus Spirits Ltd

Globus Spirits (GSL) was originally incorporated as Globus Agronics Limited on February 16, 1993 with the Registrar of Companies, Delhi & Haryana, and obtained the Certificate of Commencement of Business on March 19, 1993. The name of the Company was subsequently changed to Globus Spirits Limited vide a fresh Certificate of Incorporation obtained on January 23, 2007 from the Registrar of Companies, Delhi and Haryana at New Delhi.

The company’s product excellence has ENAbled it to pioneer branding in the IMIL space with launch of India’s 1st ENA based country liquor brand- Nimboo. As a first for the industry, the company gave the bottom of the pyramid consumer a better tasting product, along with superior packaging that the consumers otherwise expect from other FMCG lines. This has led to a higher value perception of its brands. Little wonder then, that every day it is redefining ‘country liquor’ in India.

The company’s manufacturing facilities are ENAbling excellence by maximising yields from raw material. Its fully operational production units allow it to maximise alcohol yield while maximising production of by products leading to complete utilisation of the raw material. These facilities are also ENAbling a clean environment with a zero pollution footprint and cogeneration of power using renewable biomass as fuel.  

Business area of the company

Globus Spirits Limited (the Group) is primarily engaged in the business of manufacture and sale of Indian Made Indian Liquor (IMIL), Indian Made Foreign Liquor (IMFL), Bulk Alcohol hand sanitizer and Franchise Bottling.

Product range of the company includes:

IMFL

  • White Lace Gin White Lace Dry Gin
  • White Lace Duet Gin GR 8 Times Dry Gin Samurai Gold Extra Rich Blend Whisky
  • Samurai Premium Whisky 20-20 Premium Whisky
  • 20-20 Superior Whisky 
  • GR 8 Times Whisky
  • GR 8 Times XXX Rum
  • Hannibal Legendry RumHannibal Legendry XXX Rum 
  • Samurai XXX Rum
  • Samurai Grape Brandy
  • Samurai Superior Grape Brandy 
  • Samurai Superior Whisky 
  • Academy Deluxe XXX Rum
  • Academy Deluxe Brandy

Country Liquor

  • Rana
  • Rajasthan No.-1
  • Ghoomar
  • Samalkha No.-1
  • Samalkha Ki Saunfi
  • Kinnu
  • Commander

History and milestones

1994-95

  • First Distillery set up; commenced production of Ethyl Alcohol in April 1994 at Samalkha Unit, Haryana. Unit was set up with an installed capacity of 144 lakh BL per annum.
  • Purchase of land at Village Shyampur, Tehsil Behror, District Alwar, Rajasthan for setting up a Distillery unit for manufacturing 40,000 Bulk Litres of Rectified Spirit and 20,000 Bulk Litres of Extra Neutral Alcohol per day.
  • The company acquired 18 acres of land in village Shyampur in Behror, Rajasthan.

1995-96

  • Sets up second Distillery unit at Behror, Rajasthan; Unit commissioned.
  • Authorised Share Capital increased from Rs. 5 crores to Rs. 10 crores.
  • Bonus issue to existing shareholders in the ratio of 12 equity shares for every 10 equity shares held.
  • Enters into agreement with International Distilleries (India) Ltd. - a subsidiary of International Distillers and Ventures, UK, to bottle IMFL products under the brand name of ‘IDI’.

1996-97

  • During the year Behror Unit also started production. The sale was Rs. 5092.12 lakhs with a profit after tax of Rs. 278.42 lakhs. The Company has also exported alcohol to the tune of Rs. 4221.54 lakhs during the year.

1998-99 

  • Takes up work at Samalkha unit for conversion of molasses supplied by Panipat Co-operative Sugar Mills.
  • The company has started production of IMFL at its Behror unit under the brand name of Rajputana.

1999-2000

  • Commenced bottling of IMFL at Behror Unit in August, 1999; and Country Liquor at Samalkha Unit in December, 1999.

2000-01

  • Haryana State Pollution Control Board on 29.8.2000 orders closure of distillery unit at Samalkha for alleged non-compliance of pollution requirements.

2001-02

  • Haryana Pollution Control Board orders start of Bottling of Country Liquor at Samlakha unit on 17.8.2001.
  • Bottling at Samlakha Unit starts w.e.f 23.3.2002 after clearance by Hon’ble High Court of Punjab & Haryana on issues raised by State Excise Department.

2003-04

  • Enters into agreement on 26.7.2002 with Hi-Life Impex Pvt Ltd (Hi-Life) for use of Trademarks in respect of Ready to Drink Beverages (RTDB) and manufactures the same under technical know-how from Hi-Life.
  • Commercial production of RTDB starts from 27.9.2003.

2004-05

  • Sets up Effluent Treatment and Environment friendly Bio-Composite Plant and entire plant and machinery repaired in order to start the Distillation plant at Samalkha Unit.

2005-06

  • Distillation Plant commences operation at Samalkha Unit in April, 2005.

2006-07

  • Authorised Share Capital increased from Rs. 10 crores to Rs. 15 crores.
  • Name of the Company changed from Globus Agronics Limited to Globus Spirits Limited with effect from 23.1.2007.

2007-08

  • Authorised Share Capital increased from Rs. 15 crores to Rs. 25 crores.

2008-09

  • Launched Hannibal Legendary, one of its core brands, in the rum segment  

 2009-10

  • Launched Initial Public Offer and listed on stock exchanges (BSE & NSE). 

2010-11

  • Completed capacity expansion at Samalkha & Behror plants, increasing capacity from 28.8 million bulk litre to 70.0 million bulk litres p.a.
  • Launched flagship whisky brand, County Club, in six states across India.
  • Entered into a tie-up with Jagatjit Industries for bottling of their popular brands at Samalkha, Haryana.

2011-12

  • Merged Associated Distillers Limited (ADL) with GSL, thereby, increasing total capacities to 84.4 million bulk litres p.a. Launched brand Nimboo in the IMIL segment in Haryana, which became an immediate success.

2012-13

  • IMIL brand Nimboo launched in Rajasthan in 2012.
  • White Lace becomes 3rd largest selling gin in its category in Rajasthan

2013-14

  • Hannibal Rum brand approved for CSD, sales commenced in FY 2014.

2014-15

  • Ghoomer, largest selling IMIL brand by a private player in Rajasthan, with 15% market share.

2015-16

  • Scaled up contracts with United Spirits and ABD.

2016-17

  • Launched Goldee as an umbrella brand with multiple flavor variants in West Bengal.

2017-18

  • Entered attractive West Bengal IMIL market backed by the 360° mode.
  • Unibev, premium IMFL venture, launched its first brand in Pondicherry.

2018-19

  • Unibev, premium IMFL venture, entered 4 more markets with a portfolio of 3 brands.

2019-20

  • 145 million litres of production with zero discharge.
  • End to end production of 15 million cases of bottled beverages.
  • 91% utilization of operating capacity, 34% used in-house for value added products.

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