At a Glance
Associated Alcohols & Breweries Ltd is a Madhya Pradesh-based liquor manufacturer making both IMIL (desi daaru) and IMFL (foreign-sounding desi daaru), with market dominance in MP and presence in Kerala. In FY25, it clocked ₹81 Cr profit on ₹1,076 Cr revenue with 12% OPM and 20% ROCE. P/E is 26.5.
1. 🪩 Introduction with Hook
Move over Glenlivet, India has White Brandy. And the company that birthed it? Not Diageo. Not Pernod Ricard. It’s Associated Alcohols & Breweries Ltd, an MP-based liquor legend that’s been quietly brewing riches for its shareholders.
From ₹648 lows to ₹1,122 now (up 73%), ASALCBR has had a soberly spectacular rally. But is it just ethanol fumes or a business with real spirit?
2. 🥃 Business Model – WTF Do They Even Do?
Associated Alcohols deals in:
- ENA (Extra Neutral Alcohol) – raw material for IMFL
- IMIL – Indian Made Indian Liquor (country liquor)
- IMFL – Indian Made Foreign Liquor (branded desi whisky, rum, vodka)
- White Brandy – yes, it exists and they invented it
- Hillfort Premium Whisky – their latest premium push
- Contract manufacturing – bottling for bigger brands
They’re strong in Madhya Pradesh (20-25% IMIL/IMFL share) and have entered Kerala, a tough market dominated by state-owned Bevco.
3. 📊 Financials Overview – Profit, Margins, ROE, Growth
| Metric | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| Revenue (₹ Cr) | 436 | 513 | 701 | 759 | 1,076 |
| Net Profit (₹ Cr) | 58 | 61 | 42 | 51 | 81 |
| OPM (%) | 21% | 16% | 9% | 10% | 12% |
| ROCE (%) | 34% | 28% | 15% | 14% | 20% |
| ROE (%) | 32% | 28% | 15% | 14% | 17% |
Highlights:
- 3Y Revenue CAGR: 28%
- 3Y PAT CAGR: 11%
- TTM PAT growth: 61% 🍻
Margins were hit in FY23–24 due to raw material inflation (molasses, grain). But FY25 shows recovery.
4. 💸 Valuation – Is It Cheap, Meh, or Crack?
| Metric | Value |
|---|---|
| CMP | ₹1,122 |
| P/E (TTM) | 26.5x |
| P/B | 4.14x |
| ROE (TTM) | 17.3% |
Fair Value Range (Based on 18–22x PE on FY25 EPS of ₹42.47):
FV = ₹765 – ₹935
Current price is ~20% above FV range, implying the premium is for growth optimism.
5. 🔥 What’s Cooking – News, Triggers, Drama
- ✅ Hillfort Whisky Launch: Premium push begins with UP, soon pan-India.
- 🚀 Volume spike in FY25: Sales touched ₹1,076 Cr, up 42% YoY.
- ❌ CFO Exit (May 2025): Mr. Ankit Agrawal resigned.
- 💼 Kerala Expansion: Holding top 5 IMFL slot—despite state control.
- 🧪 White Brandy continues as a niche novelty.
6. 🧾 Balance Sheet – How Much Debt, How Many Dreams?
| Metric | FY25 |
|---|---|
| Net Worth | ₹520 Cr |
| Total Borrowings | ₹102 Cr |
| Debt/Equity | 0.20x |
| Fixed Assets | ₹351 Cr |
| CWIP | ₹32 Cr |
➡️ Comfortable leverage. Capex likely for distillation expansion.
7. 💰 Cash Flow – Sab Number Game Hai
| Metric | FY25 |
|---|---|
| CFO | ₹74 Cr |
| CFI | ₹–83 Cr |
| CFF | ₹1 Cr |
| Net Cash | –₹8 Cr |
Heavy investing cash outflow = Capex or expansion. Still positive on operations.
8. 📈 Ratios – Sexy or Stressy?
| Ratio | FY25 |
|---|---|
| ROCE | 20% |
| ROE | 17.3% |
| OPM | 12% |
| Inventory Days | 76 |
| Debtor Days | 13 |
| Cash Conversion Cycle | 65 days |
📦 Inventory Days improved sharply from 117 → 76 YoY = better ops efficiency.
9. 💸 P&L Breakdown – Show Me the Money
| Quarter | Revenue (₹ Cr) | Net Profit (₹ Cr) | OPM (%) |
|---|---|---|---|
| Mar ’23 | 701 | 42 | 9% |
| Mar ’24 | 759 | 51 | 10% |
| Mar ’25 | 1,076 | 81 | 12% |
Strong QoQ trend:
- Dec ’24: ₹327 Cr rev, ₹26 Cr PAT
- Mar ’25: ₹242 Cr rev, ₹22 Cr PAT (seasonal dip but good margins)
10. 🥊 Peer Comparison – Who Else in the Game?
| Company | P/E | ROCE | Sales (TTM ₹ Cr) | PAT (₹ Cr) |
|---|---|---|---|---|
| United Spirits | 64x | 28.6% | 12,069 | ₹1,630 |
| United Breweries | 112x | 13.9% | 8,915 | ₹460 |
| Radico Khaitan | 100x | 16.2% | 4,851 | ₹345 |
| Tilaknagar Ind. | 29x | 28.4% | 1,434 | ₹229 |
| Assoc. Alcohols | 26.5x | 20.0% | 1,076 | ₹81 |
🧠 Verdict: Among cheapest on PE, solid ROCE. Only Tilaknagar looks comparable on growth+value.
11. 🧃 Miscellaneous – Shareholding, Promoters
| Metric | Value |
|---|---|
| Promoter Holding | 59.29% (Stable) |
| FII Holding | 1.06% |
| Public | 39.65% |
| Dividend Payout | 4% |
| EPS (FY25) | ₹42.47 |
No major dilution. Retail count steady (~36K shareholders). FII holding negligible but rising.
12. 🍻 EduInvesting Verdict™
- 📈 5Y Revenue CAGR: 16%
- 🍾 Margins back to 12% – recovery on track
- 💡 White Brandy, Hillfort whisky = niche + premium trigger
- 🏋️♂️ Strong Balance Sheet, low debt
- 😬 Dividend? Laughably low
- 🎯 Valuation slightly rich, but not frothy like UBL or Radico
Verdict:
This stock’s not fully sober anymore 🍷—but still isn’t blackout drunk. Growth cheers, margin recovery, and premium play keep the buzz alive.
✍️ Written by Prashant | 📅 June 28, 2025
Tags: Associated Alcohols, White Brandy, IMFL India, Liquor stocks, Hillfort Whisky, Breweries Distilleries, Smallcap liquor, Madhya Pradesh IMIL
