Globus Spirits rallies 11% after additional capacities at 2 units go on stream
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In the last six months, Globus Spirits stock has fallen nearly 17 percent, underperforming bencmark Nifty 50 which has risen 15 percent during this period.
Shares of Globus Spirits jumped around 11 percent on April 1 after the company informed that it has commenced commercial production of additional capacity at two of its existing units at Singhbhum in Jharkhand, and at Burdwan in West Bengal.
With this expansion, the capacity of the units increased from 140KLPD (kilo litres per day) to 200KLPD at Jharkhand and from 240KLPD to 300KLPD at West Bengal. The additional capacity will be used for various products, including ENA and ethanol.
The expansion has been completed with a total investment of Rs 142 crore, the company informed.
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At 12:17pm, Globus Spirits shares were trading at Rs 729.55 on the National Stock Exchange (NSE), up 9.6 percent from the previous close. In the last six months, the stock has fallen nearly 17 percent, underperforming benchmark the Nifty 50, which has risen 15 percent in this period.
Globus Spirits manufactures, markets, and sells liquors, sanitisers, animal feed, CO2, bioethanol, and bulk alcohol. The company’s product portfolio includes whisky, brandy, vodka, rum, and gin, and its distilleries are located in Rajasthan, Haryana, West Bengal and Bihar.
InCred Equities is bullish on Globus Spirits. The brokerage has an ‘add’ rating on the stock with a target price of Rs 2,519 as it sees expansion in gross profit margin due to a rise in the selling price of Indian Made Indian Liquor (IMIL) and softening in broken rice among key triggers.
Energy costs, foray into new markets and product launches also support the price uptick, it said in a note.
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For the quarter ended December 2023, Globus Spirit’s net profit surged 64.8 percent on-year to Rs 44.4 crore on 16.1 percent YoY increase in net sales to Rs 687.5 crore.
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