India’s Breweries & Distilleries IPOs attract significant interest due to high growth potential. Companies leverage increasing demand for alcoholic beverages, robust distribution networks, and branding strategies. IPOs provide opportunities for investors to participate in the growing alcohol industry.
Content:
- Overview of the Breweries & Distilleries IPOs in India
- IPO Fundamental Analysis
- IPO Financial Analysis
- About the Company
- Advantages of Investing in Breweries & Distilleries Sector IPOs
- Disadvantages of Investing in Breweries & Distilleries Sector IPOs
- Role of Breweries & Distilleries Industry in the economy
- How to invest in Breweries & Distilleries IPOs?
- Future outlook of Breweries & Distilleries IPOs in India
- Breweries & Distilleries IPOs in India – FAQ
Overview of the Breweries & Distilleries IPOs in India
India’s Breweries & Distilleries sector has seen steady IPO activity, reflecting strong growth and evolving consumer preferences. Prominent players raise capital to expand operations and enhance production capacity, aligning with rising alcohol demand in domestic and export markets.
These IPOs benefit from robust consumption trends and government liberalization. However, the sector also faces challenges like taxation and regulatory changes, impacting profitability. Investors consider these dynamics while exploring IPO opportunities in this rapidly evolving industry.
IPO Fundamental Analysis
Allied Blenders & Distillers Ltd
Allied Blenders & Distillers Ltd showcased consistent growth in FY24, with improved sales, operational efficiency, and stable profitability. Equity utilization remained moderate, while enhanced liquidity and asset expansion highlighted balanced financial management despite rising current liabilities.
Revenue Trend
Allied Blenders & Distillers Ltd demonstrated steady revenue growth, with sales increasing from ₹2,686 Crores in FY22 to ₹3,147 Crores in FY23 and ₹3,328 Crores in FY24, showcasing consistent operational performance.
Equity and Liabilities
Equity capital remained stable at ₹48.82 Crores in FY24 and FY23, rising slightly from ₹47.11 Crores in FY22. Total liabilities increased from ₹2,248 Crores in FY22 to ₹2,636 Crores in FY24, reflecting controlled debt expansion.
Profitability
The operating profit margin (OPM) improved from 5.86% in FY23 to 7.26% in FY24, recovering near the 7.28% recorded in FY22, indicating operational efficiency gains.
Earnings per Share (EPS)
EPS remained steady at ₹0.07 in FY23 and FY24, marginally improving from ₹0.06 in FY22, signaling consistent shareholder earnings amidst stable profitability.
Return on Net Worth (RoNW)
RoNW improved to 1.56% in FY24 from 1.16% in FY23, though slightly below the 1.83% recorded in FY22, reflecting moderate efficiency in equity utilization.
Financial Position
Current liabilities increased from ₹1,630 Crores in FY22 to ₹2,007 Crores in FY24. Non-current assets declined from ₹790.91 Crores in FY22 to ₹747.81 Crores in FY24, while current assets grew significantly to ₹1,888 Crores in FY24, enhancing liquidity. Total assets expanded to ₹2,636 Crores in FY24, indicating balanced growth.
Sula Vineyards Ltd
Revenue Trend
The company exhibited strong revenue growth, with sales increasing from ₹424.41 Crores in FY22 to ₹516.27 Crores in FY23 and ₹567.73 Crores in FY24, showcasing consistent operational performance.
Equity and Liabilities
Equity capital improved slightly to ₹16.88 Crores in FY24 from ₹16.85 Crores in FY23 and ₹15.72 Crores in FY22. Total liabilities rose from ₹758.56 Crores in FY22 to ₹1,026 Crores in FY24, reflecting balanced expansion.
Profitability
Operating profit margin (OPM) consistently improved, reaching 30.56% in FY24, up from 30.3% in FY23 and 26.52% in FY22, indicating enhanced operational efficiency and profitability.
Earnings per Share (EPS)
EPS increased significantly to ₹11.06 in FY24 from ₹9.97 in FY23 and ₹6.63 in FY22, reflecting robust shareholder returns and improved earnings performance.
Return on Net Worth (RoNW)
RoNW grew steadily to 16.46% in FY24, compared to 15.89% in FY23 and 11.77% in FY22, showcasing enhanced equity utilization and financial efficiency.
Financial Position
Non-current assets increased to ₹524.08 Crores in FY24 from ₹456.9 Crores in FY23 and ₹388.02 Crores in FY22, indicating strategic investments. Current assets rose to ₹502.27 Crores, bolstering liquidity. Total assets expanded to ₹1,026 Crores in FY24, showcasing financial growth.
Ravi Kumar Distilleries Ltd
Ravi Kumar Distilleries Ltd faced challenges in FY24, with declining sales, persistent losses, and negative profitability. Despite marginal improvements in EPS and RoNW, the company’s financial position remained stable with consistent equity capital and steady total liabilities.
Revenue Trend
Ravi Kumar Distilleries Ltd witnessed fluctuating sales, increasing from ₹10.51 Crores in FY22 to ₹29.39 Crores in FY23, but declining to ₹25.85 Crores in FY24, reflecting inconsistent operational performance and market demand challenges.
Equity and Liabilities
Equity capital remained unchanged at ₹24 Crores across FY22, FY23, and FY24. Total liabilities slightly decreased to ₹129.23 Crores in FY24 from ₹130.17 Crores in FY23, reflecting stable debt management.
Profitability
The operating profit margin (OPM) remained negative, deteriorating to -7.93% in FY24 from -3.02% in FY23, though improving compared to -42.18% in FY22, indicating ongoing operational inefficiencies.
Earnings per Share (EPS)
EPS improved marginally to -₹0.81 in FY24 compared to -₹0.95 in FY23 and significantly better than -₹5.51 in FY22, reflecting reduced losses for shareholders.
Return on Net Worth (RoNW)
RoNW slightly improved to -4.65% in FY24 from -5.22% in FY23, a notable improvement from -28.88% in FY22, showing reduced equity inefficiencies despite continued losses.
Financial Position
Current assets remained steady at ₹85.79 Crores in FY24, compared to ₹86.74 Crores in FY23 and ₹85.8 Crores in FY22. Total assets also stabilized at ₹129.23 Crores in FY24, reflecting balanced financial management.
IPO Financial Analysis
Allied Blenders & Distillers Ltd.
| FY 24 | FY 23 | FY 22 | |
| Sales | 3,328 | 3,147 | 2,686 |
| Expenses | 3,086 | 2,962 | 2,489 |
| Operating Profit | 242.13 | 184.99 | 196.32 |
| OPM % | 7.26 | 5.86 | 7.28 |
| Other Income | 1.27 | 11.07 | 11.25 |
| EBITDA | 248.39 | 196.06 | 207.56 |
| Interest | 172.77 | 134.97 | 145.1 |
| Depreciation | 57.86 | 55.14 | 58.64 |
| Profit Before Tax | 12.78 | 5.95 | 3.83 |
| Tax % | 85.69 | 73.09 | 61.19 |
| Net Profit | 1.83 | 1.6 | 1.49 |
| EPS | 0.07 | 0.07 | 0.06 |
All values in ₹ Cr.
Sula Vineyards Ltd
| FY 24 | FY 23 | FY 22 | |
| Sales | 567.73 | 516.27 | 424.41 |
| Expenses | 391.88 | 358.81 | 311.13 |
| Operating Profit | 175.85 | 157.46 | 113.29 |
| OPM % | 30.56 | 30.3 | 26.52 |
| Other Income | 7.72 | 3.49 | 2.78 |
| EBITDA | 183.57 | 160.95 | 116.07 |
| Interest | 26.16 | 21.08 | 22.92 |
| Depreciation | 31.63 | 25.89 | 23.61 |
| Profit Before Tax | 125.78 | 113.98 | 69.54 |
| Tax % | 25.81 | 26.27 | 25.02 |
| Net Profit | 93.31 | 84.03 | 52.14 |
| EPS | 11.06 | 9.97 | 6.63 |
All values in ₹ Cr.
Ravi Kumar Distilleries Ltd
| FY 24 | FY 24 | FY 23 | |
| Sales | 25.85 | 29.39 | 10.51 |
| Expenses | 28.14 | 30.28 | 14.94 |
| Operating Profit | -2.29 | -0.89 | -4.43 |
| OPM % | -7.93 | -3.02 | -42.18 |
| Other Income | 0.78 | -1.03 | -8.36 |
| EBITDA | 0.67 | -0.89 | -4.43 |
| Interest | 0.04 | 0.07 | 0.06 |
| Depreciation | 0.4 | 0.29 | 0.39 |
| Profit Before Tax | -1.94 | -2.28 | -13.24 |
| Tax % | — | — | 0.06 |
| Net Profit | -1.94 | -2.28 | -13.23 |
| EPS | -0.81 | -0.95 | -5.51 |
All values in ₹ Cr.
About the Company
Allied Blenders & Distillers Ltd
Allied Blenders & Distillers Ltd is a leading liquor manufacturer in India, known for its flagship brand “Officer’s Choice.” The company specializes in manufacturing and distributing premium Indian whisky, catering to a vast domestic and international market.
With a focus on innovation and expanding its product portfolio, the company demonstrates strong growth potential. Consistent revenue growth and efficient operational strategies position it as a key player in the Indian liquor industry, supported by its robust distribution network.
Sula Vineyards Ltd
Sula Vineyards Ltd is India’s leading wine producer and pioneer in premium winemaking. Renowned for its diversified product range, Sula commands a significant market share in the wine segment, backed by its modern production facilities and extensive distribution network.
The company emphasizes sustainable practices and eco-friendly viticulture, gaining a competitive edge in the industry. By capitalizing on India’s growing preference for wine, Sula is well-positioned for future growth, supported by its strong brand recognition and export capabilities.
Ravi Kumar Distilleries Ltd
Ravi Kumar Distilleries Ltd engages in manufacturing and selling Indian-made foreign liquor (IMFL), catering to diverse consumer preferences. Its product range includes whisky, rum, brandy, and gin, serving both domestic and international markets with quality-focused offerings.
With a growing market presence, the company emphasizes operational efficiency and brand development. Strategic investments in manufacturing infrastructure and partnerships contribute to Ravi Kumar Distilleries’ steady growth in the competitive liquor industry.
Advantages of Investing in Breweries & Distilleries Sector IPOs
The main advantage of investing in Breweries & Distilleries IPOs lies in their growth potential, driven by rising consumption, brand recognition, and export opportunities.
- Growing Demand: Alcohol consumption in India is increasing due to urbanization and changing lifestyles, ensuring long-term growth prospects for companies in this sector.
- Export Potential: Indian liquor brands are expanding globally, offering significant revenue opportunities through exports, especially in premium alcohol segments.
- Strong Brand Equity: Many companies in this sector boast strong, well-established brands that drive customer loyalty and pricing power.
- High Margins: The sector offers attractive profit margins due to premium pricing and economies of scale achieved through advanced manufacturing processes.
Disadvantages of Investing in Breweries & Distilleries Sector IPOs
The main disadvantage of investing in Breweries & Distilleries IPOs is the sector’s vulnerability to regulatory changes and taxation, which can impact profitability.
- Regulatory Risks: Frequent changes in government policies and licensing rules can affect production and distribution in this highly regulated industry.
- High Taxation: Alcoholic beverages are subject to heavy taxation, reducing margins and increasing costs for both producers and consumers.
- Competition: The sector faces intense competition from domestic and international brands, requiring significant marketing investments to maintain market share.
- Ethical Concerns: Some investors may avoid the sector due to its association with social issues, impacting overall demand for its shares.
Role of Breweries & Distilleries Industry in the economy
The Breweries & Distilleries industry significantly contributes to India’s economy through employment, revenue generation, and exports. It supports agriculture by procuring raw materials like barley, maize, and molasses from local farmers, creating a robust supply chain.
This sector also adds to government revenue through excise duties and taxes. Additionally, its focus on innovation and premium product development supports global recognition of Indian brands, further driving the country’s economic growth.
How to invest in Breweries & Distilleries IPOs?
Investing in Breweries & Distilleries IPOs involves opening a Demat account with a registered broker. Research the company’s financials, market position, and growth potential before applying through the broker’s platform or UPI-based applications.
Stay informed about IPO announcements via SEBI notifications or stock exchange updates. Review the prospectus to understand risks, and align investments with your financial goals for effective participation in these IPOs.
Future outlook of Breweries & Distilleries IPOs in India
The future of Breweries & Distilleries IPOs in India appears promising due to rising urbanization, increasing alcohol consumption, and premiumization trends. Emerging players entering the market will likely drive further growth in this sector.
Sustainable production practices and technological advancements are expected to enhance profitability. However, regulatory frameworks and taxation policies will remain key factors influencing the sector’s overall performance and investor sentiment.
Breweries & Distilleries IPOs in India – FAQ
A Breweries & Distilleries IPO allows companies in the alcoholic beverages sector to raise public funds by offering shares, enabling investors to participate in the industry’s growth.
Prominent companies include United Breweries, Sula Vineyards, and Allied Blenders & Distillers, which have successfully launched IPOs, attracting significant interest from investors.
These IPOs signify growth opportunities in the expanding alcoholic beverages market, allowing investors to diversify their portfolios and tap into a high-demand industry.
The largest IPO in this sector was by Allied Blenders & Distillers, which raised ₹1,500 crore in July 2024, highlighting its market prominence.
To invest, open a Demat account, research the IPO details, and apply via your broker’s platform or UPI applications during the IPO period.
Brewery and distillery IPOs can be suitable for long-term investment, but their success depends on factors like the company’s financial performance, industry growth prospects, and regulatory stability. It’s important to assess these aspects before committing to a long-term investment.
Profitability from breweries and distilleries IPOs depends on market conditions, the brand strength of the company, and its operational efficiency. A detailed analysis of these factors is crucial to determine potential returns before investing.
Currently, no upcoming IPOs in the Breweries & Distilleries sector have been announced, but future listings may arise based on market trends.
Detailed reviews and insights into performance and investment potential are available on Alice Blue’s platform, including comprehensive stock analysis, expert reviews, and brokerage reports for informed investment decisions.
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Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time The securities quoted are exemplary and are not recommendatory.
