GSL is improving IMFL sales in WB,Haryana and Delhi. They are trying to get the shelf space in UP and Jharkhand.They have Governor’s reserve,Mountain Oak and Oakton under Whisky segment.Please provide the review of the products and availability in these states if anyone have access.
Mountain Oak is doing well in UP . Delhi is govt market so its primarily push sales .Products are good but branded business is long runaway and needs investment to gain market shares and needs to compete with deep pocketed multinationals .
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Could be a couple of things of the below:
- Last two quarters the OPM has halved.
- Compared to peers it’s Gross Profit Margin is not so great.
- Lastly - this could be a red-herring for Q4 results not in line with expectations.
Also looks like hence forth companies with good fundamentals will do well, rest will be brought down to their previous levels before the mad rush started in mid-cap, small-cap…
Discl - not invested.
@strike44 or @Sreekanthreddy9 Do you know how much of the bulk alcohol capacity is used internally for the consumer business?
They have mentioned in Mn Cases for consumer business in PPT.
Company is concentrating on IMFL. They have recruited several experienced people for IMFL segment in the last 3 years. Mountain Oak is getting good attention in WB
No Label is also good, can scale this up just like bira but not sure if management can do that or not.
Whats the source of info?
36a972da-cabf-49c2-8974-9e4772f6b98c.pdf (acesphere.com)
This is the invesment in Bored beveages, they have acquired 51% stake.
No Label Mead | Bored Bev
This is the website of No Label. We can buy these beverages at Gurugram and Delhi.
GSL IMFL Strategy.pdf (603.5 KB)
My views on GSL’s IMFL strategy…
If OPM is halfed,Mean reversion will take place-It is at the lowest ever margins for now 
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Now that’s an optimistic view . Interestingly their cost of raw materials is going up, when compared to the peers ( Piccadilly Agro ) the cost is almost double … probably need to understand, why they are not able to source the raw material at industry rates as done by it’s peers.
Note: Above info is purely from numbers reported, I have not done any deep dive into the business model analysis.
How is Piccadily Agro comparable to globus ? Raw material for Piccadily is barley as they produce malts and it’s broken rice /maize/ bajra/ sorghum etc.for globus since they produce Ethanol .
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Probably you are right, still the question bags the answer - why the material cost is rising for Globus…
Is there a way to track Maize and broken rice commodity prices in Eastern india?
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Documented my thoughts on Globus Spirits here: Globus Spirits - Stock Analysis - Google Docs
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Could be a respite to globus in terms of raw material prices
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Globus Spirits (I attended the call)
During the Q1 FY25 conference call, management expressed expectations for margin improvement starting from Q3 FY25. An analyst noted that Mountain Oak Whisky is performing well in Uttar Pradesh, despite supplier issues on Globus’s end. Management plans to focus on Uttar Pradesh, given its substantial market size of 250-300 million cases of IMFL.
Has anyone from UP or Delhi tried Globus’s spirits Products, such as Mountain Oak Whisky, Snosky Vodka, or Terai Gin? While Radico Khaitan averages 3 million cases per quarter, Globus is currently at 0.19 million cases in the Prestige and Above segment (>Rs.1500)
Disc- Not Invested
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