Allied Blenders and Distillers Limited

Consumer Defensive — Beverages - Wineries & Distilleries · NSE

₹748.70+₹9.45 (+1.28%)

DalalBaazaar Score

59 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Moderate

Driven by small-cap size, which brings sharper price swings, a very high earnings multiple, which leaves little margin for disappointment, falling profits.

In simple words: Strong business and financial position, though profits are falling even as sales grow. Valuation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:46 pm

Understanding the Business

Company site ↗

The 60-second version of Allied Blenders and Distillers Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Allied Blenders and Distillers Limited produces and sells alcoholic beverages in India and internationally.

IndustryBeverages - Wineries & Distilleries

SectorConsumer Defensive

Employees929

Annual revenue₹3,711 Cr

How does it make money?

Turns over ₹3,711 Cr a year. Of every ₹100 of sales, about ₹6 reaches shareholders as profit, with ₹15 left at the operating level before interest, tax and depreciation. Each of its 929 employees supports ₹3.99 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹3.99 Cr

Who are its competitors?

The closest listed comparisons in its industry are HINDUSTAN UNILEVER LTD., ITC LTD, NESTLE INDIA LIMITED, BRITANNIA INDUSTRIES LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 24.6%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 13.7% against a peer median of 51.0% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

Peer median ROE51.0%

What is the outlook?

12 analysts covering the stock expect revenue to grow about 13.1% and earnings to grow about 38.9% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+13.1%

Est. earnings growth+38.9%

Analysts12

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +24% while net margin moved +11419% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+24%

Margin effect+11419%

DalalBaazaar Score

59/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ P/E of 95.6x is demanding — it needs sustained high growth to justify
• P/E is close to its own historical median of 92.1x
✗ P/B of 12.60x is a steep premium to book

Quality vs. Valuation

Company Quality

66/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

42/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

A good business, but the price already reflects that. The quality is real; the question is whether you are overpaying for it today.

Historical Valuation

Current P/E

95.6x

2Y Median

92.1x

29 monthly readings · mean 2575.2x · range 56.2x–7877.1x

Sector Median

43.3x

median of 4 sector peers

🟡Currently trading close to its 2y median of 92.1x — the market is paying about what it usually pays for this company.

⚠️Against its sector it trades 121% above the peer median of 43.3x.

vs. its own history

Fair

92.1x median over 29 months · +4%

vs. sector peers

Expensive

43.3x median of 4 peers · +121%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

38.8x

PEG

0.23

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 6.6% to 15.3% over 3 years.
Return on equity is rising
ROE has improved from 0.4% to 13.7%.
High return on capital employed
ROCE of 24.6% is the mark of a business that converts capital into profit efficiently.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

2 items require attention · 1 high · 1 watch

🔴Receivables growing faster than salesFinancial
Receivables up 88% against revenue up 24% — sales are being booked faster than they are collected.
🟡Debt is increasingFinancial
Total debt is up 45% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 24.6% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Margin expansion has further to run
EBITDA margin has risen from 6.6% to 15.3%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Sales are being booked faster than collected
Receivables are up 88% against revenue up 24%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
A premium to the sector to defend
It trades 121% above the peer median. That premium needs a reason that persists, or it closes.
Growth barely outpaces inflation
Revenue compounding at 7.4% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Small Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 13%✓ 15.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA stays below 2x✗ 2.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
3Interest cover stays above 3x✓ 3.6x
How much operating profit can fall before interest stops being comfortably covered.
4Revenue growth stays above 6% a year✓ 7.4% CAGR
Latest reported year was 6.1%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
5Free cash flow remains positive✓ ₹13 Cr
Profit that never becomes cash eventually stops being profit.

Investment Checklist

7 / 12 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✗ Profit growing year-over-year
✗ Not trading at an extreme valuation (P/E < 40x)
✗ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

3 good · 5 neutral · 3 weak

Market Cap

₹20,942 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

95.6x

Expensive

Expensive — verify against sector peers

P/B Ratio

12.60x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹7.83

Profitable

Profitable on a per-share basis

ROE

13.7%

Moderate

Moderate capital efficiency

ROCE

24.6%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.68x

Moderate

Moderate leverage

Revenue Growth (YoY)

6.1%

Modest

Modest growth

Profit Growth (YoY)

-12.9%

Falling

Profits are shrinking

Dividend Yield

0.72%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹13 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

48.0x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

9.5%

Average

Average margins

Net Margin

5.6%

Average

Average bottom-line conversion

Current Ratio

1.34

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.75

Defensive

Steadier than the market

52W Range Position

95%

Near high

Near its 52-week high

Technical Snapshot

SMA 20 / SMA 50

702.0 / 649.0

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

58.9

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹2,996 Cr	₹3,178 Cr	₹3,344 Cr	₹3,711 Cr	+7.4%
EBITDA	₹196 Cr	₹262 Cr	₹451 Cr	₹566 Cr	+42.3%
EBITDA Margin	6.6%	8.3%	13.5%	15.3%	—
PAT (Net Profit)	₹2 Cr	₹2 Cr	₹195 Cr	₹228 Cr	+422.6%
EPS	₹0.06	₹0.07	₹7.19	₹8.16	+422.5%
ROE	0.4%	0.4%	12.6%	13.7%	—
ROCE	24.7%	29.5%	23.2%	24.6%	—
Total Debt	₹793 Cr	₹835 Cr	₹905 Cr	₹1,151 Cr	+13.2%
Free Cash Flow	₹210 Cr	₹140 Cr	-₹809 Cr	₹13 Cr	-60.9%

🟢 Revenue has grown at 7.4% a year over 3 years.

🟢 EBITDA has grown at 42.3% a year over 3 years.

🟢 EBITDA Margin has risen from 6.6% to 15.3% over 3 years (+8.7 pts).

🟢 PAT (Net Profit) has grown at 422.6% a year over 3 years.

🟢 EPS has grown at 422.5% a year over 3 years.

🟢 ROE has risen from 0.4% to 13.7% over 3 years (+13.3 pts).

🟡 ROCE has held roughly flat at 24.6% over 3 years.

🔴 Total Debt has grown at 13.2% a year over 3 years.

🔴 Free Cash Flow has shrunk at 60.9% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹4,154 Cr

Total Liabilities

₹2,468 Cr

Cash & Equivalents

₹129 Cr

Operating Cash Flow

₹362 Cr

Capex

-₹349 Cr

Shareholding (proxy)

Institutional Holding

6.2%

Insider Holding

79.0%

Corporate Actions

Dividend Rate

₹5.4

Ex-Dividend Date

25 Jun 2026

Analyst Consensus

Recommendations

12 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹736

-1.7% vs CMP

Target Range

₹650 – ₹850

Peer Comparison

Company	P/E	ROE
HINDUSTAN UNILEVER LTD.	42.5x	21.5%
ITC LTD	16.6x	27.4%
NESTLE INDIA LIMITED	59.8x	79.9%
BRITANNIA INDUSTRIES LTD	44.1x	51.0%

Recent News

3 mixed3 general

Allied Blenders and Distillers (NSEI:ABDL) Stock Forecast & Analyst Predictions

Simply Wall Street, 09 OctAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

ABDL Share Price hits 52-week high; price action reviewed

Univest, 25 Sept

Allied Blenders shares surge over 5% after SBI Mutual Fund, Abu Dhabi Investment Authority buy stake

Upstox, 23 SeptPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Leela Palaces Hotels & Resorts among 4 stocks hitting 52-week highs; rally up to 32% in a month

The Economic Times, 15 Oct

Allied Blenders shares hit 5% lower circuit as Q4 profit tanks 52% Y-o-Y

Business Standard, 18 MayPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Allied Blenders Co-Promoter To Sell 55 Lakh Shares To Meet Public Shareholding Rules

Sahi, 22 Sept

Watch Items

Trading very close to its 52-week high — momentum-driven entries here carry more mean-reversion risk.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongFinancial Health · Growth

MiddlingBusiness Quality · Profitability · Risk

WeakValuation

Points for each in the Score ↑

Good business, demanding price

The quality is real and the price already reflects it. Buying here is a bet that the business keeps compounding for long enough to grow into the multiple — which good businesses often do, but it removes the margin for error that a lower price would have given you. 1 high-severity red flag sits above this conclusion and should be read first.

1 of 5 tripwires tripped — Debt / EBITDA stays below 2x · see Key things to watch ↑