Globus Spirits Shares Can Rally 55%, Says Dolat Capital As It Initiates Coverage

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Dolat Capital Report

We initiate coverage on Globus Spirits with ‘Buy’ rating & SOTP based target price of Rs 1,600 on FY27E multiples, implying ~31x FY27E EPS. Incorporated in 1993, Globus Spirits is a noteworthy player in ENA/Ethanol (manufacturing) and Country Liquor (IMIL) segment.

Over the past three years, it has strategically positioned itself to emerge as a leading branded IMFL AlcoBev player. Globus Spirits, after earning super-normal profits over FY20-22 went through severe earnings decline over FY22-25 led by steep increase in raw material.

We expect headwinds to recede over FY25- 27E, positioning Globus Spirits' all three segments (manufacturing, IMIL, & IMFL) for strong growth driving superior 37% Ebitda and 101% EPS CAGR (subdued base) over FY25-28E.

The IMFL business is projected to be atleast a five-seven year growth story (Globus Spirits has the right to win) and drive multiple re-rating if executed well.

The company is currently trading at 28/18x FY26/27E EPS.

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