Aurangabad Distillery Ltd

[growell]

Business Overview:
(https://aurangabaddistillery.com/)
As a frontrunner in the field, Aurangabad Distillery is at the forefront of non-potable alcohol manufacturing, setting the standard for quality and innovation. company operates state-ofthe-art distillery, spanning approximately 40 acres in Walchandnagar, Maharashtra, harnesses the potential of molasses-based production methods. With a robust annual capacity of 18 million ltrs, it has established itself as a significant player in the market. Equipped with the latest equipment and advanced technology, its distillery operates with precision and efficiency to deliver high-quality
spirits. It embraces technological advancements to ensure that it’s products meet the highest standards of excellence.

Product Profile:
(Aurangabad Distillery Limited)
a) Rectified Spirit: Used in production of liquors, for medicinal purposes and for chemical industry as solvent.
b) Neutral Alcohol: Used in Cosmetics and Aromatic Industry
c) Special Denatured Spirit: Used in Chemical Industry as a cleaning agent, fuel additive, sanding aid, exterminator and as a solvent
d) Potash: It is a soluble potassium used in agricultural fertilizer
e) Bio Potash: Used as Organic Fertilizer
f) De Potash Vinasse (DPV): Used as Animal Feed and Soil Nutrients

Manufacturing Capacity:
(Aurangabad Distillery Limited, Walchandnagar - Manufacturer of Rectified Spirit and Indoor Plants)
Company’s unit is located at Walchandnagar, Maharashtra with a capacity of 180 Lac Liters

Revenue Breakup: (https://archives.nseindia.com/corporate/PostBMIntimationalongwithfinancials_27052022132848.pdf#page=6)[5]

In FY22, company generated revenue from Sale of Products ~97% (including exports ~4%) Sale of Services ~1% and Other Income ~2

Concerns:

a) Miss. Ankita Gandhi resigned as Company Secretary and Compliance officer of company on 31st October 2022 and was replaced by Miss. Komal Rajesh Shendge on 1st November 2022
b) M/s. Kale & Associates tendered their resignation as Statutory Auditors of company on 28th March 2022 and were replaced by M/s. HMA & Associates on 30th April 2022

source:
https://www.screener.in/company/AURDIS/
https://aurangabaddistillery.com/report.php

Your comments are welcome…

Disclosure: I am holding this stock.

[Dhvanit_Merchant17]

AURDIS_16082023210757_ADLINTIMATION.pdf (nseindia.com)

Although the Company has obtained a stay on the order, the Liability can’t be ruled out. Also a big jump in Other Current Assets showcases the upfront amount required to pay to get stay on the order.

Do note that many parameters are in favour of the company and results have improved which is indicated in rise in the price of the share.

And also, this was mentioned somewhere. I do not remember the official source now but found it on twitter.

Disc: Invested.

[Balaji1974]

Please check why they are not going for expansion with such stable business. Also please check about related party transaction.

[Rajesh_Singh]

Invested since lower levels and has been part of signficant rise in stock prices. Corporate governance remains an issue though as they never share investor presentation or AGM also in physical mode. I sent a mail requesting them and after much follow up got one line response. Undervalued at current price still and holding. Penalty imposed is not an issue in my view, some stupid bureacrat without applying mind has imposed and it is already put on hold but one wishes they were forthcoming and transparet.

[varunyj]

One thing I’m a bit unclear is on who their competitors are. Since they have a wide portfolio of products, are some of these products produced by all spirit companies (Eg- Rectified spirit, neutral alcohol, denatured spirit etc.) or is it some special niche? Trying to understand how they are going to differentiate themselves. Comments are welcome.

[ramansharma]

Factory Visit Of Aurangabad Distillery Ltd

[Balaji1974]

The company has a stable business. Why its not going for capacity expansion.
Also does the promotor has similar unlisted business?