New Delhi: ABDL, i.e., Allied Blenders and Distillers, is India’s largest liquor company, which exports its products to the foreign market. Among the top four biggest distributors across the country, the company is known for the world’s third-largest whiskey brand, Officer’s Choice. ICONiQ White, the world’s fastest-growing whiskey brand, is also included under the brand ambit of ABDL.
DAM Capital has initiated a Buy rating on Allied Blenders and Distillers stock. The brokerage firm has recommended buying ABDL at the current market price. It has projected the counter to rise to the level of Rs 525 in 12 months.
ABDL stock has gained 25 per cent in the past one month. The counter made its all time high on January 3, 2025 when it went up to the level of Rs 437.45 per equity share.
Allied Blenders and Distillers financials, business
DAM Capital’s brokerage report states that ABDL is entering into a new phase of growth with a strong balance sheet after the IPO. The company is moving towards premiumization of its product portfolio. Along with this, emphasis is being laid on increasing margins through volume-based expansion while making production cost-efficient along with optimization of the supply chain. The changes in the company’s operations clearly show that now the company’s management is emphasizing maintaining profitability. Along with this, the premium portfolio is being expanded, which is increasing the hope of improvement in margins.
ABDL’s management is focusing on premiumization of its product portfolio. For this, the company is constantly engaged in strategic repositioning by analyzing customer preferences and industry trends. High-growth premium brands like ICONiQ White, Sterling Reserve, and Zoya Gin are leading the company in this change. The company is confident of 14 percent growth in its premium brands on an annual basis.
ABDL has made a capex plan of Rs 5.25 billion to strengthen the supply chain with backward integration. For this, a distillery has also been acquired in Maharashtra recently. The company plans to increase its production capacity to 61 MLPA, i.e., million liters per annum, within three years. In this way, the total capacity of the company will become 120 MLPA. With this, the company will be able to meet about two-thirds of its captive needs. This is important for strengthening the company’s supply chain as well as improving margins.
Rising input costs, inflation, and increased debt to focus on mass premium brands have impacted ABDL’s profitability over the last five years. However, there has been a major turnaround in FY25, with EBITDA growing 78% and YoY PAT growing 105 times. The company is set to further boost revenue growth with volumes. Broadly, PAT is expected to grow at a CAGR of 28% during FY25 to 27.
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Allied Blenders and Distillers (ABDL), India’s largest liquor company, receives a “BUY” rating from DAM Capital with a ₹525 target price. This positive outlook stems from ABDL’s robust balance sheet post-IPO, premiumization strategy focusing on brands like ICONiQ White, and significant supply chain improvements. Biz News Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
