Shares of an alcohol manufacturer pared 8 percent on Thursday’s trades to reach an intraday low of ₹ 915.00 apiece after a huge block deal took place on the counter. At 03:26 PM, its shares were trading at ₹ 920.00. a
According to reports, about 25 lakh shares or 8.5 percent equity of Globus Spirits changed hands at an average of ₹ 975- ₹ 985 per share, indicating a discount of 1-2 percent from Wednesday’s closing price of ₹ 995. Details of the buyers and sellers could not be ascertained immediately.
Globus Spirits, manufactures and sells Indian Made Indian Liquor (IMIL), Indian Made Foreign Liquor (IMFL), bulk alcohol hand sanitizer, and franchise bottling. It has a unique 360⁰ model straddling the entire alcohol value chain.
The company’s quarterly revenue stood at ₹ 570.09 crores in Q1FY24 (April to June 2023), up 15.07 percent compared to ₹ 495.42 crores in the corresponding period a year ago. Its net profit rose 4 percent to ₹ 38.80 crores in Q1FY24.
With a market capitalization of ₹ 2,870 crores, Globus Spirits is a small-cap company. It has a low return on equity of 14.73 percent and an ideal debt-to-equity ratio of 0.33. Its shares were trading at a price-to-earnings ratio (P/E) of 23.23, which is lower than the industry P/E of 29.86, indicating that the stock might be undervalued as compared to its peers.
The company’s promoters hold a 51.01 percent stake in it, followed by retail investors with 39.89 percent, foreign institutions with 4.76 percent and mutual funds with a 4.43 percent stake.
Written by Simran Bafna
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