ICICI Direct has given Buy recommendation for Globus Spirits recommended buy rating on the stock with a target price of Rs 1750 in its research repor with a target price of Rs. 1750 in its research report issued on Sep 20, 2021
ICICI Direct’s research report on Globus Spirits
Globus Spirits (GSL) is the largest grain based ENA manufacturer in India with a capacity of 160 million litre. The company is also a supplier of Indian made Indian liquor (IMIL) and premium IMFL in India. IMIL segment comprised ~42% of consolidated revenues, with the rest contributed by bulk alcohol (45%) and others (botting and by-products). Total 80% of IMIL sales occurs in Rajasthan (32-33% market share).
Outlook
We remain positive on the stock and maintain our BUY recommendation. We value the stock at Rs 1750 i.e. 17x P/E on FY23E EPS.