The shares of this alcohol stock jumped nearly 30 percent in just two trading sessions and hit a 52-week high of Rs.1,153.8 per share after Motilal Oswal Mutual Fund bought a stake in the company.
Price Variation
In Monday’s trading session, Globus Spirits Limited’s share price reached a 52-week high of Rs.1,153.8 per share, marking a 30 percent increase from the opening price of Rs.888 apiece on August 30, 2024. Since then, the share price has dropped to Rs.1,086.25 per share.
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What is the news
On Friday, August 30, Motilal Oswal Mutual Fund acquired 2,00,000 equity shares of Globus Spirits, representing 0.69 percent of the company’s total equity, through a block deal on the NSE.
The mutual fund purchased the shares at an average price of Rs.1,071.49 per share, according to exchange data. As of June 30, 2024, Motilal Oswal Mutual Fund held no more than a 1 percent stake in the company.
Motilal Oswal invested in Globus Spirits to capitalize on its strong financial performance and growth potential in the alcoholic beverages sector. This move aims to enhance its portfolio by investing in a company with diverse brands and operational capabilities.
Manufacturing Capacity
GSL operates five modern, fully integrated grain-based distilleries located in Behror (Rajasthan), Samalkha (Haryana), Panagarh (West Bengal), Vaishali (Bihar), and Baharagora (Jharkhand), with a total combined capacity of approximately 268 million litres per year.
Future Outlook
GSL has entered the Ready-to-Drink (RTD) market with its new subsidiary, Bored Beverages. This move aligns with forecasts predicting India’s RTD market will grow to 65.6 million litres by FY25, up from 38.2 million litres in FY20.
Additionally, GSL has announced a joint venture with Caribbean conglomerate ANSA McAL Ltd to manufacture, source, and distribute beer in India. The initial focus will be on launching the ‘Carib’ beer brand.
Financials
Examining the company’s financials, GSL reported a Q1 FY25 revenue of Rs.642 crore, reflecting a 12.6 percent increase from Rs.570 crore in the same quarter last year. However, Profit After Tax (PAT) fell by 59 percent to Rs.16 crore, down from Rs.39 crore in the previous year’s quarter.
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Company Profile
GSL is involved in manufacturing, marketing, and selling branded Indian-made foreign liquor (IMFL), Indian Made Indian Liquor (IMIL), and bulk alcohol, including rectified spirit and ENA. Additionally, the company handles franchisee bottling for well-known brand owners.
Written by – Siddesh S Raskar
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