- 16 Apr 2025
- ICICIdirect Research
ANDHRA PRADESH SPECIAL INVESTIGATION TEAM (SIT) ORDERING FREEZING OF BANK ACCOUNTS OF ALLIED BLENDERS AND DISTILLERS
ADSL - 190 Change: -0.03 (-0.02 %)News: Media reports have indicated of Andhra Pradesh Special Investigation Team (SIT) ordering freezing of bank accounts of Allied Blenders and Distillers (ABDL) in connection with alleged liquor scam that is said to be occurred during the previous government regime. The SIT was constituted to investigate the policies by the government which would have restricted the operation of several national liquor brands in the state favouring selective companies to sell their brands including brands of ABDL. However, the company has notified the exchanges that they are not receipt of any notice from banks or any enforcement agencies regarding such actions and the news is speculative in nature and is factually incorrect. Further the company has stated that it operates in full compliance with the law and maintain highest standards of transparency and corporate governance.
View: The stock reacted negatively due to the nature and sensitivity of the news but recovered from its decline post the clarification from the company. The fundamentals of the company of the company are intact and we expect the company revenues and PAT to grow at CAGR of 12% and 38% over FY25-27E. We retain our Buy rating on the stock.
Impact: Neutral