G.M. Breweries Limited

Consumer Defensive — Beverages - Wineries & Distilleries · NSE

₹871.80+₹3.10 (+0.36%)

DalalBaazaar Score

66 / 100

🟢 Good

Verdict

REASONABLE

Risk

High

Driven by moderate debt load, negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, with both sales and profits growing well. Cash generation 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 G.M. Breweries Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

G.M. Breweries Limited manufactures and sells alcoholic beverages in India. The company offers Indian made foreign liquor and country liquor. It offers its products under the G.M.SANTRA, G.M.DOCTOR, G.M.LIMBU PUNCH, and G.M.DILBAHAR SOUNF brand names.

IndustryBeverages - Wineries & Distilleries

SectorConsumer Defensive

Employees227

Annual revenue₹747 Cr

How does it make money?

Turns over ₹747 Cr a year. Of every ₹100 of sales, about ₹21 reaches shareholders as profit, with ₹27 left at the operating level before interest, tax and depreciation. Each of its 227 employees supports ₹3.29 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹3.29 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?Some evidence

ROCE of 19.1% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

Peer median ROE51.0%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +26% while net margin moved +25% 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+26%

Margin effect+25%

DalalBaazaar Score

66/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.32 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

69/ 100

Good

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

Valuation

75/ 100

Cheap

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

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

11.5x

3Y Median

12.8x

40 monthly readings · mean 13.7x · range 9.1x–21.7x

Sector Median

43.3x

median of 4 sector peers

🟢Current valuation is approximately 10% below its 3y median of 12.8x. 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 73% below the peer median of 43.3x.

vs. its own history

Fair

12.8x median over 40 months · -10%

vs. sector peers

Cheap

43.3x median of 4 peers · -73%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

10.0x

PEG

0.71

What's Good / What's Bad

🟢 What's Going Well2

Margins are improving
EBITDA margin is up from 22.3% to 27.0% over 3 years.
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

3 items require attention · 2 high · 1 watch

🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🔴Receivables growing faster than salesFinancial
Receivables up 631% against revenue up 26% — sales are being booked faster than they are collected.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹141 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 19.1% 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 22.3% to 27.0%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Cheaper than its peers
It trades 73% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
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 631% against revenue up 26%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
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.
Several serious flags at once
2 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

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

1EBITDA margin holds above 25%✓ 27.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹141 Cr
Profit that never becomes cash eventually stops being profit.
3Revenue growth stays above 6% a year✓ 8.0% CAGR
Latest reported year was 19.9%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
4Debt / EBITDA stays below 2x✓ 0.2x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 16%✓ 19.1%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

8 / 11 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
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

6 good · 4 neutral · 1 weak

Market Cap

₹1,992 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

11.5x

Cheap

Cheap against the generic band

P/B Ratio

1.75x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹75.85

Profitable

Profitable on a per-share basis

ROE

16.3%

Strong

Strong capital efficiency

ROCE

19.1%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

1.48x

Moderate

Moderate leverage

Revenue Growth (YoY)

19.9%

Healthy

Healthy top-line growth

Profit Growth (YoY)

12.6%

Healthy

Profits growing at a healthy clip

Dividend Yield

1.03%

Modest

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

Free Cash Flow

-₹5 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

P/E (Forward)

14.4x

Flat

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

ROA

10.2%

Good

Assets are working hard

Operating Margin

5.6%

Average

Average margins

Net Margin

8.5%

Average

Average bottom-line conversion

Current Ratio

1.02

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

0.32

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

933.0 / 913.1

Bullish alignment (short > long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

23.2

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹593 Cr	₹615 Cr	₹636 Cr	₹747 Cr	+8.0%
EBITDA	₹132 Cr	₹125 Cr	₹137 Cr	₹202 Cr	+15.2%
EBITDA Margin	22.3%	20.4%	21.6%	27.0%	—
PAT (Net Profit)	₹100 Cr	₹152 Cr	₹129 Cr	₹157 Cr	+16.2%
EPS	₹43.69	₹66.32	₹56.48	₹68.64	+16.3%
ROE	14.6%	18.4%	13.7%	14.5%	—
ROCE	19.2%	22.0%	17.1%	19.1%	—
Total Debt	—	—	₹56 Cr	₹35 Cr	—
Free Cash Flow	₹96 Cr	₹59 Cr	₹162 Cr	-₹141 Cr	—

🟢 Revenue has grown at 8.0% a year over 3 years.

🟢 EBITDA has grown at 15.2% a year over 3 years.

🟢 EBITDA Margin has risen from 22.3% to 27.0% over 3 years (+4.8 pts).

🟢 PAT (Net Profit) has grown at 16.2% a year over 3 years.

🟢 EPS has grown at 16.3% a year over 3 years.

🟡 ROE has held roughly flat at 14.5% over 3 years.

🟡 ROCE has held roughly flat at 19.1% over 3 years.

🔴 Free Cash Flow has turned negative, from ₹96 Cr to -₹141 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1,225 Cr

Total Liabilities

₹147 Cr

Cash & Equivalents

₹2 Cr

Operating Cash Flow

-₹96 Cr

Capex

-₹46 Cr

Shareholding (proxy)

Institutional Holding

0.3%

Insider Holding

74.4%

Corporate Actions

Dividend Rate

₹9

Ex-Dividend Date

21 May 2026

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 positive1 mixed2 general

Is Now The Time To Put G.M. Breweries (NSE:GMBREW) On Your Watchlist?

Simply Wall Street, 14 Oct

GM Breweries Ltd. 52 Week Low Streak: Price and Valuation

Univest, 16 Oct

GM Breweries Q1 FY27 results: Net profit jumps 45%, revenue grows to ₹803 crore YoY; shares rally 6%

Upstox, 08 JulResults

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

GM Breweries Q1 Profit Jumps 46%; Revenue Tops ₹200 Crore

HDFC Sky, 09 JulResults

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

GM Breweries rises 6% to hit 52-week high post Q3 results; retreats later

Business Standard, 06 JanResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

GM Breweries to Review Q1 Results on July 9 Following 24% Profit Surge in FY26

Sahi, 23 JunResults

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

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.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

StrongBusiness Quality · Growth · Profitability · Valuation

MiddlingFinancial Health

WeakRisk

Points for each in the Score ↑

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last. 2 high-severity red flags sit above this conclusion and should be read first.

1 of 5 tripwires tripped — Free cash flow remains positive · see Key things to watch ↑