Allied Blenders & Distillers (ABD) shares surged 3% to ₹322 after ICICI Securities initiated coverage with a ‘Buy’ rating and a target price of ₹400. The brokerage highlighted ABD’s strategic shift towards the premium and prestige liquor categories as a key growth driver.
ABD’s focus on expanding its premium product portfolio is anticipated to support double-digit volume growth in the coming years. In addition, its profitable presence in the mass-premium segment and backward integration efforts, such as in-house Extra Neutral Alcohol (ENA) manufacturing, are expected to enhance margins and operational efficiency.
ICICI Securities projects ABD to achieve a robust revenue CAGR of 10% and an impressive EBITDA CAGR of 30% between FY24 and FY27. These growth projections underscore the company’s strong fundamentals and its potential to capitalize on evolving market trends.
As of 9:19 am, Allied Blenders shares were trading 3.37% higher at Rs 334.05 on the NSE.
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