Monika Alcobev Limited

Consumer Defensive — Beverages - Wineries & Distilleries · BSE

₹149.95+₹1.05 (+0.71%)

DalalBaazaar Score

67 / 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, 7:47 pm

Understanding the Business

Company site ↗

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

What does this company do?

Monika Alcobev Limited engages in importing, sales, distribution, and marketing for spirits, wines, and liqueurs in India and Internationally. The company offers brandy and cognac, gin, rum, tequila, mezcal, soju, pisco, vodka, whiskey, wine, bitters, and liqueur.

IndustryBeverages - Wineries & Distilleries

SectorConsumer Defensive

Employees222

Annual revenue₹301 Cr

How does it make money?

Turns over ₹301 Cr a year. Of every ₹100 of sales, about ₹11 reaches shareholders as profit, with ₹18 left at the operating level before interest, tax and depreciation. Each of its 222 employees supports ₹1.36 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.36 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 20.9%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 18.9% 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 has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +119% while net margin moved +13% 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+119%

Margin effect+13%

DalalBaazaar Score

67/ 100

Good

Weighted across six categories. Every point is explained below.

✗ 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

84/ 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

9.3x

1.4Y Median

22.0x

17 monthly readings · mean 22.5x · range 11.2x–40.5x

Sector Median

43.3x

median of 4 sector peers

🟢Current valuation is approximately 58% below its 1.4y median of 22.0x. 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 78% below the peer median of 43.3x.

vs. its own history

Cheap

22.0x median over 17 months · -58%

vs. sector peers

Cheap

43.3x median of 4 peers · -78%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

9.4x

PEG

0.27

What's Good / What's Bad

🟢 What's Going Well2

High return on capital employed
ROCE of 20.9% 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 Attention2

Return on equity is falling
ROE has dropped from 76.1% to 13.2% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 49.6% to 20.9% — often a sign of competition or overexpansion.

Red Flags

4 items require attention · 4 high

🔴Debt has risen sharplyFinancial
Total debt is up 192% over 3 years, from ₹72 Cr to ₹211 Cr.
🔴Free cash flow negative for 4 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴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.
🔴Inventory building faster than salesFinancial
Inventory up 394% against revenue up 119% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 20.9% 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.
Priced below its own history
The stock trades 58% 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 78% 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?

The debt load needs earnings to hold up
Debt is 3.9x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Returns on shareholder capital are falling
ROE has dropped from 76.1% to 13.2%. 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.
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
4 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

1Revenue growth stays above 22% a year✓ 29.9% CAGR
Latest reported year was 43.4%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 16%✓ 18.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 3.9x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
4Free cash flow remains positive✗ -₹102 Cr
Profit that never becomes cash eventually stops being profit.
5Interest cover stays above 3x✓ 3.1x
How much operating profit can fall before interest stops being comfortably covered.

Investment Checklist

9 / 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

7 good · 3 neutral · 1 weak

Market Cap

₹322 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

9.3x

Cheap

Cheap against the generic band

P/B Ratio

1.32x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹16.08

Profitable

Profitable on a per-share basis

ROE

18.9%

Strong

Strong capital efficiency

ROCE

20.9%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.86x

Moderate

Moderate leverage

Revenue Growth (YoY)

43.4%

Healthy

Healthy top-line growth

Profit Growth (YoY)

40.2%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.67%

Modest

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

Free Cash Flow

-₹130 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

ROA

7.2%

Average

Average asset productivity

Operating Margin

15.3%

Good

Healthy core-business profitability

Net Margin

10.7%

Good

Strong bottom-line conversion

Current Ratio

1.90

Comfortable

Healthy short-term liquidity

52W Range Position

21%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

148.5 / 156.2

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

53.0

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹137 Cr	₹180 Cr	₹236 Cr	₹301 Cr	+29.9%
EBITDA	₹26 Cr	₹34 Cr	₹47 Cr	₹55 Cr	+28.7%
EBITDA Margin	18.7%	18.8%	20.0%	18.2%	—
PAT (Net Profit)	₹13 Cr	₹17 Cr	₹23 Cr	₹32 Cr	+35.1%
EPS	₹6.07	₹7.74	₹10.78	—	—
ROE	76.1%	28.4%	24.1%	13.2%	—
ROCE	49.6%	44.4%	39.7%	20.9%	—
Total Debt	₹72 Cr	₹123 Cr	₹174 Cr	₹211 Cr	+43.0%
Free Cash Flow	-₹7 Cr	-₹55 Cr	-₹42 Cr	-₹102 Cr	—

🟢 Revenue has grown at 29.9% a year over 3 years.

🟢 EBITDA has grown at 28.7% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 18.2% over 3 years.

🟢 PAT (Net Profit) has grown at 35.1% a year over 3 years.

🔴 ROE has fallen from 76.1% to 13.2% over 3 years (-62.9 pts).

🔴 ROCE has fallen from 49.6% to 20.9% over 3 years (-28.7 pts).

🔴 Total Debt has grown at 43.0% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹492 Cr

Total Liabilities

₹248 Cr

Cash & Equivalents

₹17 Cr

Operating Cash Flow

-₹102 Cr

Capex

-₹1 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

84.0%

Corporate Actions

Dividend Rate

₹1

Ex-Dividend Date

18 Jun 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

1 positive1 mixed4 general

Compare PHOTOQUIP(I) with

Equitymaster, 16 Oct

Monika Alcobev Share Price Near 52-Week Low, Valuation Check

Univest, 30 Sept

Monika Alcobev Makes Stock Market Debut, Marks Milestone for India’s Premium Liquor Industry

Aabkari Times, 13 Oct

MONIKA ALCOBEV LIMITED Share Price

Upstox, 05 May

Monika Alcobev Ltd. Share Price Fall: BSE Stock in Focus

Univest, 12 AugPrice 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.

Monika Alcobev AGM passes FY26 accounts and dividend

scanx.trade, 25 JunCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongGrowth · Valuation

MiddlingBusiness Quality · Financial Health · Profitability

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. 4 high-severity red flags sit above this conclusion and should be read first.

2 of 5 tripwires tripped — Debt / EBITDA falls below 3x; Free cash flow remains positive · see Key things to watch ↑