Intresting. 80% of liquor sold in Plastic bottles. Alcohol being corrosive, inert material is essential for high alcohol content liquids.
If small percentage of it converted to glass packaging (article mentions > 800 Rs/bottle) in multiple states, it shall consume significant capacity of glass industry.
2 Likes
Any update or views on the same as stock appears to be fairly valued at this price available at P/E of 14.5
1 Like
My views are the same. The valuations were neither cheap earlier nor are they now. The biggest question mark as stated earlier imho still remains revenue visibility in the next 1-2 years.
First quarter results were great. Second was flat. I would take even a 6% growth for this financial year in its revenues. 6% growth for a 8 times EVEBITDA looks like a stretch but it’s comfortable to me.
Overall, my views remain unchanged. Valuations are not cheap, there’s no doubt about it. Fair price, probably, but definitely not cheap.
There is Debottlenecking happening in the company. The management expects H2FY26 to be much much better. I expect FY27 to be robust for this company.