1. At a Glance
Globus Spirits is India’s full-stack ethanol-and-alcohol beast—distilling everything from IMFL to sanitizer, while also playing contract bottler for big names. But with a P/E of 146 and profit growth doing the moonwalk backwards, is this high-priced shot losing its buzz?
2. Introduction with Hook
Imagine a factory that turns grains into whisky, sanitizers, vodka, profits, and sometimes… nothing. Globus Spirits is like the Dhoni of alcohol—can open, finish, and do the entire 360-degree play. It was the first to build a grain-based distillery in India, and now it’s launching award-winning brands like DOAAB whisky and TERAI gin.
But before we start sipping the Kool-Aid:
- EPS has collapsed from ₹48.9 (FY21) to ₹8.05 (FY25).
- Operating margins have dropped from 21% to 6%.
So, is this a cyclical hangover… or the company’s new normal?
3. Business Model (WTF Do They Even Do?)
Globus Spirits has a fully integrated alcohol biz:
- Bulk Alcohol (fuel ethanol, ENA): Sells to oil marketing companies & IMFL brands.
- IMIL: Indian Made Indian Liquor – mass segment products.
- IMFL: Premium, branded liquor (e.g. DOAAB, TERAI).
- Contract Bottling: For brands like USL, Pernod Ricard, etc.
- DDGS (distillers dried grain with solubles): For cattle feed.
Its four plants in West Bengal, Bihar, Haryana, and Rajasthan let it own the supply chain.
Revenue split:
- Manufacturing (bulk + ENA): 62%
- Consumer (IMIL + IMFL): 38%
4. Financials Overview
Profit & Loss Snapshot (₹ Cr)
| FY | Revenue | EBITDA | PAT | OPM % | EPS |
|---|---|---|---|---|---|
| FY21 | 1,224 | 255 | 141 | 21% | 48.9 |
| FY23 | 2,103 | 246 | 122 | 12% | 42.4 |
| FY24 | 2,414 | 169 | 96 | 7% | 33.4 |
| FY25 | 2,537 | 151 | 22 | 6% | 8.05 |
Commentary:
- PAT shrank by ~84% in 4 years.
- Margins halved.
- Return ratios are sobering: ROE at just 2.23%, ROCE 5.62%.
5. Valuation
Let’s play darts at the Fair Value (FV) board.
Method 1: P/E-based
- Current P/E: 146x
- Realistic P/E for IMIL-heavy biz: 20–25x
- FY26E EPS (optimistic): ₹12–14
→ FV Range: ₹240 – ₹350
Method 2: EV/EBITDA
- EV/EBITDA median for peers: 10x
- FY26E EBITDA: ₹180–200 Cr
→ Enterprise Value: ₹1,800–2,000 Cr
→ Implied FV: ₹300–₹375
Verdict: Current price ₹1,100 is more “Premium Vodka” pricing for what’s becoming “IMIL margins.” Caution: Bubble inside.
6. What’s Cooking – News, Triggers, Drama
- Capacity Expansion: New units in UP, Jharkhand, West Bengal went live in FY24–25.
- New Brands: DOAAB whisky, TERAI gin, Shola Shabnam vodka, and Nimboo segment products.
- JV Drama: Formed JV with ANSA McAL to launch Carib beer at ₹130/can.
- Tax Sword: ₹35 Cr income tax demand under dispute.
- Global Buzz: DOAAB & TERAI won international awards (Berlin Spirits 2025).
- Raw Material Woes: FCI rice shortage disrupted plant output in WB/Jharkhand in mid-FY24.
7. Balance Sheet
| Metric | FY21 | FY23 | FY24 | FY25 |
|---|---|---|---|---|
| Reserves | ₹557 Cr | ₹858 Cr | ₹946 Cr | ₹964 Cr |
| Debt | ₹187 Cr | ₹291 Cr | ₹329 Cr | ₹527 Cr |
| Fixed Assets | ₹579 Cr | ₹826 Cr | ₹960 Cr | ₹1,019 Cr |
| Net Worth | ₹586 Cr | ₹887 Cr | ₹975 Cr | ₹993 Cr |
Key Points:
- Debt ballooned 2.8x in 2 years.
- Balance sheet still solid but getting leveraged.
- Assets are being sweat—Capex-heavy, output-light.
8. Cash Flow – Sab Number Game Hai
| FY | CFO | CFI | CFF | Net Cash |
|---|---|---|---|---|
| FY21 | ₹148 Cr | -₹87 Cr | -₹23 Cr | ₹38 Cr |
| FY24 | ₹170 Cr | -₹164 Cr | -₹7 Cr | -₹1 Cr |
| FY25 | ₹67 Cr | -₹208 Cr | ₹142 Cr | ₹1 Cr |
Key Insights:
- Operating cash is barely funding capex.
- FY25 was rescue-financed via debt.
- Free cash flow is… not so free anymore.
9. Ratios – Sexy or Stressy?
| Metric | FY21 | FY24 | FY25 |
|---|---|---|---|
| ROCE | 32% | 9% | 5.6% |
| ROE | 25% | 9.8% | 2.2% |
| Inventory Days | 57 | 42 | 42 |
| Debtor Days | 26 | 42 | 46 |
| CCC | 17 | 14 | 51 |
Red Flags:
- Cash conversion cycle has TRIPLED.
- Working capital tightness + margin compression = bad cocktail.
10. P&L Breakdown – Show Me the Money
| FY | Sales | Expenses | OPM % | PAT | EPS |
|---|---|---|---|---|---|
| FY21 | ₹1,224 Cr | ₹969 Cr | 21% | ₹141 Cr | ₹48.9 |
| FY24 | ₹2,414 Cr | ₹2,244 Cr | 7% | ₹96 Cr | ₹33.4 |
| FY25 | ₹2,537 Cr | ₹2,386 Cr | 6% | ₹22 Cr | ₹8.05 |
Observation: Revenues doubled. Profits shrank. Classic case of revenue vanity, margin sanity, and profit reality.
11. Peer Comparison
| Company | P/E | ROCE | OPM | PAT (₹ Cr) | CMP/BV | EPS |
|---|---|---|---|---|---|---|
| United Spirits | 60.7 | 28.7% | 18.5% | ₹1,630 | 12.3x | ₹55.7 |
| Tilaknagar | 33.5 | 28.4% | 17.8% | ₹229.6 | 8.8x | ₹13.4 |
| Piccadily Agro | 55.8 | 22.6% | 22.4% | ₹102 | 8.3x | ₹11.7 |
| Globus Spirits | 145.5 | 5.6% | 5.9% | ₹22 | 3.2x | ₹8.05 |
Takeaway: Highest P/E, lowest margins. Either market’s drunk, or someone expects a brand-led comeback.
12. Miscellaneous – Shareholding, Promoters
- Promoters hold: ~50.9% (Stable)
- FIIs: Increased from 4.7% → 6.3%
- DIIs: Down from 8.9% → 5.7%
- Public: ~37%
No. of Shareholders fell from 1L to ~78k = Exit door warming up?
13. EduInvesting Verdict™
Globus Spirits built a mighty business from scratch—grains to brands, ethanol to export whisky. But in FY25, it’s caught in a classic squeeze: raw material shocks, margin pressure, rising capex and muted demand in IMIL.
The brand-building push (DOAAB, TERAI) might pay off… if execution sticks and consumer upgradation sustains.
But at 146x earnings, it’s less value investing and more craft whisky speculation.
Moral of the story: Not all spirits are meant to be uplifting.
Metadata
– Written by EduInvesting Research | 18 July 2025
– Tags: Alcohol Stocks, IMIL, Ethanol, Globus Spirits, FMCG, Distillery Stocks, DOAAB, Craft Whisky India, Smallcap Liquor Stocks
