Globus Spirits stock jumps 4% on JV with Caribbean beer firm; up 21% in a week

Globus Spirits Limited shares rose 4 percent to Rs 815 on April 5 after the company announced a joint venture with ANSA McAL, a Trinidad and Tobago headquartered brand for beer production and distribution in India, focusing on the Carib beer brand.

“We believe that the company will play a pivotal role in meeting consumer demand and driving growth in the Indian beverage sector,” the company said in a press release on April 5.

Follow our live blog for all the market action

Globus also added that the JV aims to leverage the diverse expertise and resources of both companies to deliver high-quality products and expand
market presence within India.

On April 1, 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.

Globus Spirits is engaged in the manufacturing and distribution of various alcoholic beverages, sanitizers, animal feed, CO2, bioethanol, and bulk alcohol. Its product range includes whisky, brandy, vodka, rum, and gin, with distilleries located across Rajasthan, Haryana, West Bengal, and Bihar.

InCred Equities is optimistic about Globus Spirits, giving it an ‘add’ rating and a target price of Rs 2,519. The brokerage anticipates an expansion in gross profit margin driven by an increase in the selling price of Indian Made Indian Liquor (IMIL) and a decrease in the cost of broken rice.

At 1:00 pm, the shares were trading at Rs 805 higher by 2.8 percent from the previous close on the NSE.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.