CMP – 480
MARKET CAP – 880cr
52 week High/ Low – 966/480
ACCMULATION ZONE – 480 ( As Currently Midcaps are Not in favour It would be prudent to Accmulate in SIP till if it breaks support level of 475 and can be added till 400)
2.5 TO 3yrs T – 1250+
UPSIDE – 160%
GM BREWERIES Ltd was incorporated in the year 1981.Company is Engaged in manufacturing of Alcholic liquor.
GMBL is engaged in manufacturing and marketing of Alcoholic Beverages; such as Country Liquor (CL) and Indian made Foreign Liquor (IMFL).
Mr. Jimmy Almeida set up GM Breweries in year 1981 and aims to provide finest quality country liquor to the common man.
The company is growing steadily and has earned a dedicated customer base. GMBL is the largest manufacturer of country liquor in the state of Maharashtra with a sizeable market share.
It has its manufacturing unit in Virar in Maharashtra with installed capacities of 82.6 million bulk liters of country liquor and 12.4 million bulk liters of Indian made foreign liquor.
The company markets its products brandy, rum and whiskey under brand names Pioneer Doctor Brandy, Pioneer Special Doctor Brandy, Hot Shot Rum and Reporter Choice Whiskey. The company has imported oakwood barrels to mature the whiskey in order to impart the liquor with the correct character, color, strength and distinctive taste.
Why to invest in GM Breweries?
Profit Margin – GM brew has an excellent operating profit margin of 22.40% and the net profit margin is at 16.24%.
GM brew has more than the average industry CAGR of 22%.
ROE and ROCE: is average around 24% and 26% respectively.
Its major revenue comes from country liquor and it contributes about 25-30% market in Maharashtra. It is the largest manufacturer of country liquor in Maharashtra
Raw Material (RM):
It uses rectified spirit as RM. Its price fluctuations and the shortage can affect OPM as per there latest Annual Report.
Disc – All views expressed are personal & For study purpose only. Consult your financial advisor before taking any position based on above article.
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