Shares of Allied Blenders and Distillers Ltd. gained nearly 2% in Monday's early trade after Nomura initiated a ‘Buy' rating for the Officer's Choice Whisky maker, with a target price of Rs 850 per share.
Around 9:59 am, the stock was trading at Rs 725.95 apiece on the National Stock Exchange, gaining around 1.6% from its previous close at Rs 715.05. Meanwhile, the benchmark, Nifty 50, is down 1.2%.
The brokerage expects the blender and distiller company to fire on all cylinders as it enters its next phase of growth, with new launches in white spaces and greater focus on the Prestige and Above segment.
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Premiumisation, New Launches To Drive Growth
The brokerage expects Allied Blenders to benefit from premiumisation as it expands its presence across higher-value segments. New product launches in underpenetrated categories are also expected to support the company's growth trajectory.
Nomura estimates mid-teen sales growth and mid-twenties earnings per share growth between FY26 and FY29, indicating expectations of sustained improvement in both revenue and profitability.
Backward Integration To Support Margins
Backward integration is another key growth driver highlighted by Nomura. The brokerage expects the strategy, along with premiumisation and the India-UK Free Trade Agreement, to support a significant expansion in margins.
Nomura expects Allied Blenders' margins to expand by 370 basis points between FY26 and FY29.
The brokerage's outlook points to a combination of higher-value product launches, expansion into new segments, and backward integration supporting the company's next phase of growth. The Rs 850 target price reflects Nomura's expectations of stronger sales, earnings growth, and margin expansion over the coming years.
Allied Blenders Share Price Performance
The stock has rallied more than 40% over the past year, while in 2026 itself, it has gained more than 20.3%.
In the past week alone, the stock climbed 10.22%, which also includes today's gains.
Currently, the stock is trading at a price-to-earnings multiple of 95.38 times, with a market cap of Rs 20,322.4 crore.
Also read: Officer's Choice Whisky Founders Are Said to Consider ABD Sale
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