Globus Spirits Limited

Consumer Defensive — Beverages - Wineries & Distilleries · NSE

₹817.30−₹13.25 (−1.60%)

DalalBaazaar Score

49 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Moderate

Driven by micro-cap size, which brings thin liquidity.

In simple words: Reasonable but unspectacular business quality, with both sales and profits growing well. Nothing obvious stands out as stretched — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:08 pm

Constructive picture on fundamentals. Profitability, leverage and growth metrics are broadly healthy on this snapshot. That said, valuation should still be checked against direct sector peers (not just the generic P/E bands used here) before treating this as a buy signal.

Understanding the Business

Company site ↗

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

What does this company do?

Globus Spirits Limited manufactures and sells bulk alcohol and alcoholic products in India and internationally. It operates through two segments: Manufacturing and Consumer.

IndustryBeverages - Wineries & Distilleries

SectorConsumer Defensive

Annual revenue₹2,710 Cr

How does it make money?

Turns over ₹2,710 Cr a year. Of every ₹100 of sales, about ₹3 reaches shareholders as profit, with ₹10 left at the operating level before interest, tax and depreciation.

EBITDA margin9.9%

Net margin3.4%

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.

HINDUSTAN UNILEVER LTD.P/E 42.5x · ROE 21.5%

ITC LTDP/E 16.6x · ROE 27.4%

NESTLE INDIA LIMITEDP/E 59.8x · ROE 79.9%

BRITANNIA INDUSTRIES LTDP/E 44.1x · ROE 51.0%

What is its competitive advantage?Little sign of one

Returns on capital of 12.4% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

ROCE12.4%

ROE8.4%

Peer median ROE51.0%

What is the outlook?

1 analysts covering the stock expect revenue to grow about 6.1% and earnings to grow about 20.3% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+6.1%

Est. earnings growth+20.3%

Analysts1

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +29% while net margin moved -42% 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+29%

Margin effect-42%

DalalBaazaar Score

49/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 8.4% is weak
✗ ROE has fallen by 5.4 points over the period

Quality vs. Valuation

Company Quality

44/ 100

Weak

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

Valuation

81/ 100

Cheap

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

Optically cheap, but the underlying business scores poorly. Cheap-and-weak is what a value trap looks like from the outside — the low price may be deserved.

Historical Valuation

Current P/E

7.0x

3Y Median

28.5x

40 monthly readings · mean 54.5x · range 15.7x–149.6x

Sector Median

43.3x

median of 4 sector peers

🟢Current valuation is approximately 75% below its 3y median of 28.5x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 84% below the peer median of 43.3x.

vs. its own history

Cheap

28.5x median over 40 months · -75%

vs. sector peers

Cheap

43.3x median of 4 peers · -84%

vs. generic bands

Cheap

Below 15x

P/E (Trailing)

7.0x

P/B

2.14x

EV/EBITDA

11.6x

PEG

0.14

Dividend Yield

0.80%

What's Good / What's Bad

🟢 What's Going Well3

Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Valuation below its historical average
At 7.0x the stock trades 75% below its own median of 28.5x.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention6

Margins are compressing
EBITDA margin has slipped from 11.9% to 9.9% over 3 years.
Debt is rising
Total debt is up 81% over 3 years — worth checking what it funded.
Return on equity is falling
ROE has dropped from 13.8% to 8.4% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 17.4% to 12.4% — often a sign of competition or overexpansion.
Receivables growing faster than sales
Receivables are up 53% against revenue growth of 29% — customers are taking longer to pay.
Inventory building faster than sales
Inventory is up 82% against revenue growth of 29% — stock may not be moving.

Red Flags

5 items require attention · 1 high · 4 watch

🔴Debt has risen sharplyFinancial
Total debt is up 81% over 3 years, from ₹291 Cr to ₹527 Cr.
🟡Profit is decliningFinancial
Net profit is down 25% over 3 years.
🟡Margins are compressingFinancial
EBITDA margin is down 2.1 points over 3 years.
🟡Receivables growing faster than salesFinancial
Receivables up 53% against revenue up 29% — sales are being booked faster than they are collected.
🟡Inventory building faster than salesFinancial
Inventory up 82% against revenue up 29% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 75% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 84% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹76 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
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?

Margins are being competed away
EBITDA margin has fallen from 11.9% to 9.9%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Sales are being booked faster than collected
Receivables are up 53% against revenue up 29%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Returns on shareholder capital are falling
ROE has dropped from 13.8% to 8.4%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
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
Micro 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 8%✓ 9.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Interest cover stays above 3x✓ 3.1x
How much operating profit can fall before interest stops being comfortably covered.
3Revenue growth stays above 7% a year✓ 8.7% CAGR
Latest reported year was 12.7%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
4Free cash flow remains positive✓ ₹76 Cr
Profit that never becomes cash eventually stops being profit.
5Debt / EBITDA stays below 2x✓ 2.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.

Investment Checklist

8 / 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

6 good · 5 neutral · 0 weak

Market Cap

₹2,571 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

7.0x

Cheap

Cheap against the generic band

P/B Ratio

2.14x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹116.55

Profitable

Profitable on a per-share basis

ROE

8.4%

Moderate

Moderate capital efficiency

ROCE

12.4%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.48x

Low

Conservative leverage

Revenue Growth (YoY)

12.7%

Healthy

Healthy top-line growth

Profit Growth (YoY)

48.7%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.80%

Modest

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

Free Cash Flow

₹76 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹817.3

P/E (Forward)

17.5x

Flat

At or above the trailing multiple — no earnings uplift is being priced in

Operating Margin

6.5%

Average

Average margins

Net Margin

3.6%

Average

Average bottom-line conversion

Current Ratio

1.01

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

0.54

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

808.7 / 855.6

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

46.2

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹2,108 Cr	₹2,413 Cr	₹2,537 Cr	₹2,710 Cr	+8.7%
EBITDA	₹252 Cr	₹180 Cr	₹159 Cr	₹267 Cr	+2.0%
EBITDA Margin	11.9%	7.5%	6.3%	9.9%	—
PAT (Net Profit)	₹122 Cr	₹96 Cr	₹23 Cr	₹92 Cr	-9.1%
EPS	₹42.4	₹33.42	₹8.05	₹31.65	-9.3%
ROE	13.8%	9.9%	2.4%	8.4%	—
ROCE	17.4%	9.8%	6.0%	12.4%	—
Total Debt	₹291 Cr	₹329 Cr	₹540 Cr	₹527 Cr	+22.0%
Free Cash Flow	-₹104 Cr	-₹7 Cr	-₹141 Cr	₹76 Cr	—

🟢 Revenue has grown at 8.7% a year over 3 years.

🟡 EBITDA has been broadly flat over 3 years (2.0% a year).

🔴 EBITDA Margin has fallen from 11.9% to 9.9% over 3 years (-2.1 pts).

🔴 PAT (Net Profit) has shrunk at 9.1% a year over 3 years.

🔴 EPS has shrunk at 9.3% a year over 3 years.

🔴 ROE has fallen from 13.8% to 8.4% over 3 years (-5.4 pts).

🔴 ROCE has fallen from 17.4% to 12.4% over 3 years (-5.0 pts).

🔴 Total Debt has grown at 22.0% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹104 Cr to ₹76 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹2,249 Cr

Total Liabilities

₹1,159 Cr

Total Debt

₹527 Cr

Cash & Equivalents

₹10 Cr

Operating Cash Flow

₹268 Cr

Capex

-₹191 Cr

Shareholding (proxy)

Institutional Holding

9.6%

Insider Holding

56.7%

Corporate Actions

Dividend Rate

₹6.53

Ex-Dividend Date

08 Sept 2026

Analyst Consensus

Recommendations

1 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹1,425

+74.4% vs CMP

Target Range

₹1,425 – ₹1,425

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

1 positive2 mixed3 general

MIT and 238 Plan cross 5% stake in Globus Spirits via QIP

scanx.trade, 04 Aug

Allied Blenders and Distillers vs Globus Spirits: Which Indian Spirits Stock

Univest, 11 Aug

Globus Spirits Q1 Result: Profit Rises 49% To Rs 26 Crore, Revenue Up 21%

NDTV Profit, 17 JulResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Globus Spirits (NSEI:GLOBUSSPR) Stock Forecast & Analyst Predictions

Simply Wall Street, 20 JulAnalyst view

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

Globus Spirits shares jump 7% after launching CRT-certified TERAI Tequila

Business Standard, 07 AprPrice 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.

Globus Spirits (GLOBUSSPR.NS) Eases 1.18% to ₹809.50, Holding Above Key Support - Retracement Entry

siam.in, 29 Sept

Watch Items

Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

🔴Business QualityWeak7.5/20

🟢Financial HealthStrong13.4/20

🔴GrowthWeak7.7/20

🔴ProfitabilityWeak4.6/15

🟢ValuationAttractive11.8/15

🔴RiskHigh4.4/10

Cheap, but for a reason

The low price is the whole case here, and the business underneath scores poorly. Cheap-and-weak is what a value trap looks like from the outside — it needs a specific reason the numbers are about to improve, not just the observation that they are low. 1 high-severity red flag sits above this conclusion and should be read first.

This thesis breaks if

✓EBITDA margin holds above 8%9.9%
✓Interest cover stays above 3x3.1x
✓Revenue growth stays above 7% a year8.7% CAGR
✓Free cash flow remains positive₹76 Cr
✓Debt / EBITDA stays below 2x2.0x