Overview
The company produces Mansion House Brandy, the premium brandy with the biggest sales volume in India. The company offers rum, vodka, gin, whiskey, and gin under more than fifteen distinct names.
- Market Cap ₹ 6,229 Cr.
- Current Price ₹ 323
- High / Low ₹ 326 / 177
- Stock P/E 40.1
- Book Value ₹ 33.9
- Dividend Yield 0.08 %
- ROCE 22.1 %
- ROE 24.8 %
- Face Value ₹ 10.0
- Industry PE 44.3
- Promoter
holding 40.2 %
- Pledged
percentage 0.00 %
- Debt to equity 0.19
- Profit Prev 12M ₹ 138 Cr.
- EPS ₹ 7.92
- Price to book
value 9.53
- EVEBITDA 29.8
- Price to
Earning 40.1
- No. Eq. Shares 19.3
- Change in Prom Hold -0.02 %
New Product launch
The company introduced Mansion House Chambers Brandy, a high-end version of its main brand, Mansion House, on November 23. The company debuted "Flandy," India's first premium flavoured brandy, in FY23. It also released Mansion House Reserve, the premium version of Mansion House Brandy. In Tamil Nadu, this product has been introduced to a market valued at over two million cases annually.
The Co. has a market share of ~22% in India under the Brandy Segment
Weekly Chart
Growth in sales
In FY23, the company's sales volume increased to 9.64
million cases, up from an average of 6 million cases in the five years prior.
Markets in South India account for 83%–85% of total sales volume.
Distribution Network
The company's main sales channels include distributors,
direct sales, and state corporations. In addition, it sells goods to Europe,
the Middle East, Africa, and East and Southeast Asia. It operates a network of
almost 40,000 stores all over India.
Debt reduction
Through debt restructuring, cash flow optimization, and
debt conversion into equity, the company's debt dropped from around Rs. 1200 Cr
in FY19 to Rs. 160 Cr as of Q3 FY24.
A settlement of Rs. 213 Cr was agreed between the company and three of its
lenders through an out-of-court settlement agreement in FY20, involving
outstanding debt of Rs. 668 Cr. Restructured into sustainable debt of Rs 345 Cr
and balance debt (interest rate of 0.001%) of Rs 178 Cr, the remaining loan of
Rs 523 Cr was transferred to Edelweiss ARC.
Pros
- Company has
reduced debt.
- FII and DII
continues increases its Holding.
- Company has
delivered good profit growth of 23.4% CAGR over last 5 years
- Company has a
good return on equity (ROE) track record: 3 Years ROE 27.1%
Cons
- Stock is
trading at 9.53 times its book value
- Tax rate seems
low
- Promoter
holding has decreased over last 3 years: -9.04%