BLOG
Hidden Gem: Allied Blenders & Distillers


Allied Blenders & Distillers (ABDL), incorporated in 1988, is third largest IMFL company in terms of sales volumes between FY14-22. It has 17 IMFL brands in the portfolio; 4 out of it are
Millionaire brands. Officer Choice is 3rd largest selling whisky brand globally.
Prestige & Above (P&A) category products are gaining strong traction in the domestic market due to premiumisation trend across the value chain. New product addition and distribution aided P&A contribution to increase to 37% in FY24 from 25% in FY18. The company expects the contribution of P&A category to increase to 50% by FY27.
Iconiq White Whisky clocked volumes of 2.3mn cases in FY24 and expected to double it to 4-4.5mn cases in FY25. This along with opening of Andhra Pradesh market and strong traction to new launches in the premium and luxury segments through organic and inorganic initiatives will aid P&A category volumes to grow at CAGR of 13% over FY24-27.
Overall the company’s revenues are expected to grow at CAGR of 9% over FY24-27.
Company’s EBIDTA margins hit the bottom in FY23 at 5.9% and improved to 7.3% in FY24 on back of improved mix and several cost saving initiatives. We expect margins to improve by ~510 bps over FY24-27E nearing to 13% in FY27E on back of premiumisation. EBIDTA to grow at CAGR of 32% over FY24-27E.
Clearance of overdue from the state of Telegana of Rs 400crore will help to reduce short term debt on the books in the coming years.
Consistent reduction in debt through improved cashflows, strong growth in EBIDTA and reduction in the interest cost will help PAT to grow multi-fold in the coming years.
Disclaimer – I ICICI Securities Ltd. ( I-Sec). Registered office of I-Sec is at ICICI Securities Ltd. - ICICI Venture House, Appasaheb Marathe Marg, Prabhadevi, Mumbai - 400 025, India, Tel No : 022 - 6807 7100. I-Sec is acting as a distributor to solicit bond related products. All disputes with respect to the distribution activity, would not have access to Exchange investor redressal forum or Arbitration mechanism. The contents herein above shall not be considered as an invitation or persuasion to trade or invest. I-Sec and affiliates accept no liabilities for any loss or damage of any kind arising out of any actions taken in reliance thereon. Investments in securities market are subject to market risks, read all the related documents carefully before investing. The contents herein mentioned are solely for informational and educational purpose.
Related content
Blogs
Articles - Stocks
Advantages and Disadvantages of NPS
It is a long established fact that a reader will be distracted by the readable content of a page when looking at it...
Articles - Stocks
Advantages and Disadvantages of NPS
It is a long established fact that a reader will be distracted by the readable content of a page when looking at it...
Articles - Stocks
Advantages and Disadvantages of NPS
It is a long established fact that a reader will be distracted by the readable content of a page when looking at it...
Video

Video - Stocks
What is Book Value?
Book Value Explained – Find out what is book value in stocks in this video by ICICIdirect.com.

Video - Stocks
What is Book Value?
Book Value Explained – Find out what is book value in stocks in this video by ICICIdirect.com.

Video - Stocks
What is Book Value?
Book Value Explained – Find out what is book value in stocks in this video by ICICIdirect.com.
Podcasts


