Globus Spirits Q1 Review — Dolat Capital Maintains 'Buy', Sees Upto 29% Upside
Globus Spirits is a noteworthy player in ENA/Ethanol and Country Liquor (Indian made Indian liquor) segment. Over the past three years, it has strategically positioned itself to emerge as a leading branded IMFL player.
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Dolat Capital Report
Globus Spirits Ltd.'s Q1 FY26 results were marginally soft but with healthy internals. Revenue/Ebitda/adjusted profit after tax grew by 9/21/21% YoY, respectively.
Globus Spirits is a noteworthy player in ENA/Ethanol and Country Liquor (Indian made Indian liquor) segment. Over the past three years, it has strategically positioned itself to emerge as a leading branded IMFL player.
After posting supernormal profits over FY20-22, the company experienced severe earnings decline over FY22-25 due to steep raw material costs. We expect headwinds to recede over FY25-27E, positioning Globus Spirits' all three segments for strong growth, driving superior 38% Ebitda and 102% EPS CAGR (subdued base) over FY25-28E.
The Indian made foreign liquor business, in particular, represents a five–seven year structural growth opportunity (Globus Spirits has the right to win) and drive multiple re-rating if executed well.
We broadly maintain our FY25-28E estimates. Reiterate ‘Buy' rating with SOTP-based target price of Rs 1,600. It trades at 40/25/19x FY26-28E EPS.
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