Multibagger Stock: Globus Spirits share price has risen ₹from 316.90 ₹1439 (today 2:24 pm) in the last six months – delivered nearly 350 percent returns to its shareholders in this period. However, with aggressive launch of products and widening of geographic presence with experienced management team, HDFC Securities believes that the stock of the brewery still has the potential to bounce back and go up. ₹1761 per share level in the next two quarters.
HDFC Securities report said, “Globus Spirits has successfully transformed from grain based bulk alcohol manufacturer to 360 degree alcohol beverage player. The company’s manufacturing business (Ethanol/ENA) is likely to drive growth in the near future, Given the huge tailwind, management’s primary focus is to expand the footprint of its consumer business, which we also believe is critical to long-term success and stock re-ratings from a point forward.With aggressive product launches and Expanding the geographic presence with an experienced management team, we believe GSL is well positioned to ride on the growth in consumption of alcoholic beverages in India, driven by the underlying demographic advantage and shift in perception towards alcohol. Inspired by.”
HDFC Securities reports that the largest producer and marketer of country liquor, now with the launch of India’s first ENA based country liquor brand – Nimbu, by creating a new category called ‘Premium Country Liquor’ or Medium Liquor, in India Is ‘redefining’ wine. .
“We believe that Medium Liquor can be a game-changer going forward. In addition, the company is also exploring opportunities for geographic expansion to achieve higher growth rates. Additionally, GSL has expanded its proprietary portfolio (under Unibev) IMFL. Unibev is an asset light model focused on the fast growing premium segment with high margin, low volume.” said the brokerage.
On the valuation of this multibagger stock picks, HDFC Securities’ report said, “Globus Spirits has reported EBITDA margin expansion in the last 6 consecutive quarters, reaching an all-time high of 26.5 per cent in Q1FY22. Fixed working capital CFO improved due to lower cash outlay on account of tax, availability of MAT credit and reduction in interest cost ₹148.4 crore in FY21 from ₹30.6 crore in FY19. The company strengthened its balance sheet by reducing its debt ₹75 crores despite ongoing capital expenditure. Strong cash flow generation will further help in reducing debt.”
Advising stock market investors to buy this multibagger stock for a time frame of six months, HDFC Securities’ report said, “We believe the base case of the stock is fair value. ₹1,619 and the fair value of the bull case is ₹1,761. Investors can buy into the stock ₹from 1,454 ₹Add on 1,482 Bands and Dips ₹from 1,273 ₹1,297 bands.”
Disclaimer: The views and recommendations given above are those of individual analysts or broking companies and not of Mint.
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