The beverage industry is witnessing a transformative period, with strategic portfolio developments poised to reshape market dynamics. Emerging trends suggest significant potential for growth, particularly in premium and above segments, indicating a promising trajectory for key players.
Analysts anticipate robust volume expansion driven by strategic enhancements and focused market positioning. The company’s targeted approach in the mass-premium category demonstrates a nuanced understanding of consumer preferences and market opportunities. ICICI has given a target on Allied blenders based on volume expansion and premiumization of product categories.
Share Price Movement
The share price of Allied Blenders Limited went up by 4.9 percent to Rs. 339 per share on Friday, an increase from its previous close of Rs. 323.15 per share. The market capitalisation now stands at approximately Rs. 9,195 crore as of November 29, 2024.
Target Price
ICICI Securities has given Allied Blenders a *Buy* rating with a target price of ₹400, reflecting a 24% upside from the price at recording of ₹322. The brokerage expects strong growth from premiumization, ENA (Extra Neutral Alcohol) integration, and margin expansion.
Q2 Financial Highlights
According to its recent filing, in the quarter ending September 2024, Allied Blenders’s consolidated revenue from operations has increased by 2 percent YOY from Rs. 851 crore in Q2 FY24 to Rs. 868 crore in Q2 FY25 and increased by 14.5 percent QoQ from Rs. 758 crore in Q4 FY24.
The company’s consolidated net profit has increased by 300 percent, from Rs. 12 crore in Q2 FY24 to Rs. 48 crore in Q2 FY25. As compared to the last quarter of 2025, the company’s net profit has increased by 300 percent QoQ from Rs. 12 crore.
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Market Outlook
The Indian alcoholic beverages industry is experiencing robust growth, driven by favourable demographics, increasing social acceptance, and changing consumer preferences. The industry is segmented into various categories, with whisky dominating the spirits segment. The consumption landscape is evolving, with a shift towards premium and imported brands, as well as the growing popularity of grain-based liquor.
The industry offers great potential for spirits companies, particularly given the rising young population, disposable incomes, and increasing exposure to global drinking culture. Overall, the Indian alcoholic beverages market presents a promising outlook for growth and expansion.
Shareholding Pattern
As of the November 2024 shareholding pattern, Allied Blenders Limited is primarily held by the promoters at 80.91 percent, foreign institutional investors hold 2.83 percent, and the public with 12.11 percent.
About Company
Allied Blenders and Distillers Limited (ABDL), established in 2008, has emerged as a significant player in India’s spirits market. Headquartered in Mumbai, the company has solidified its position as the third-largest Indian-made foreign liquor (IMFL) producer. ABDL is known for its extensive portfolio, including whisky, rum, brandy, and vodka.
The company operates a large distillery in Rangapur, Telangana, spread over 74.95 acres. It has an impressive annual distillation capacity of 54.75 million litres of extra-neutral alcohol (ENA). Key products under ABDL’s umbrella include Officer’s Choice Whisky, Sterling Reserve, Officer’s Choice Blue, and ICONiQ White. Notably, Officer’s Choice Whisky is one of the best-selling whisky brands globally. In recent years, ABDL has expanded its portfolio with premium offerings like Zoya Gin, catering to the luxury segment.
Looking ahead, ABDL is committed to becoming a globally admired spirits company. Through continuous innovation and strategic partnerships, it is positioning itself for further growth in both the domestic and international markets.
Written By Fazal Ul Vahab C H
Disclaimer
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