ICICI Securities has initiated coverage on Allied Blenders & Distillers with a ‘Buy’ rating and a target price of ₹400, implying a 24% upside from current market price of Rs 322. The brokerage cites the company’s strategic pivot towards the premium and prestige liquor categories as a major growth driver. Allied Blenders’ portfolio expansion in premium products is expected to fuel double-digit volume growth in the coming years.
The brokerage highlighted Allied Blenders’ profitable growth in the mass-premium segment and its backward integration initiatives, such as own ENA manufacturing. These measures, along with operational efficiencies, are projected to drive margin expansion over FY24-FY27. ICICI Securities expects the company to deliver a revenue and EBITDA CAGR of 10% and 30%, respectively, during the period.
This optimistic outlook comes amid growing competition in the liquor industry, with Allied Blenders poised to leverage its strong brand presence and expanding product portfolio to capture higher market share.
