Associated Alcohols & Breweries Ltd. (ASALCBR) AI Stock Analysis

• Market Cap: ₹15.97B
• Dividend Yield: 0.21%
• Average Volume (3M): 3.97K
• Price to Earnings (P/E): 17.7
• Beta (1Y): 1.94
• Revenue Growth: 16.02%
• EPS Growth: 48.63%
• Country: IN
• Employees: 567
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Beverages - Wineries & Distilleries
• EPS (TTM): 74.00
• Shares Outstanding: 18,979,200
• 10 Day Avg. Volume: 3,266
• 30 Day Avg. Volume: 3,971
• PEG Ratio: 0.51
• Price to Book (P/B): 4.81
• Price to Sales (P/S): 2.32
• P/FCF Ratio: -206.27
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: ₹908.00 ▼(-3.56% Downside)

The company's strong financial performance is a significant positive factor, driven by revenue growth and profitability. However, the technical analysis indicates a bearish trend, and the valuation suggests the stock is fairly valued but offers limited dividend income. The absence of earnings call data and corporate events does not impact the score.

Positive Factors

Revenue and Margin Expansion

A 42.5% top-line increase alongside gross margin expansion to 32.2% and net margin improvement to 7.6% indicates durable demand and improving cost control. Over the next several months these fundamentals support reinvestment, scalable earnings and stronger operating resilience.

Conservative Capital Structure

A low debt-to-equity ratio and high equity ratio with ROE at 15.6% reflect prudent leverage and capital efficiency. This financial strength provides flexibility to fund growth or weather volatility without heavy refinancing, supporting durable operational plans over months.

Strong Operating Cash Conversion

Positive, growing operating cash flow and a 0.91 OCF/Net Income ratio signal reliable cash generation from core operations. This sustained cash conversion supports working capital needs and ongoing investment without immediate dependence on external financing over the medium term.

Negative Factors

Negative Free Cash Flow from Capex

Persistent negative free cash flow driven by elevated capex constrains liquidity and increases reliance on external funding. If heavy investment doesn't translate to faster cash returns, this could limit dividends, debt reduction or opportunistic investments in the coming months.

Low EBITDA Margin

An EBITDA margin of 11.9% is modest relative to growth, pointing to structural operational efficiency limits or cost pressures. Without margin improvement, higher revenues may not translate proportionally to cash flow or profitability over the medium term.

Rising Total Liabilities

An increase in total liabilities, even with low D/E today, is a structural risk if sustained. Growing liabilities can pressure cash flow and capital allocation, potentially forcing higher borrowing or reduced investment flexibility unless asset returns or equity growth keep pace.

Associated Alcohols & Breweries Ltd. Business Overview & Revenue Model

Company Description

Associated Alcohols & Breweries Limited engages in liquor manufacturing and bottling activities in India. It offers extra neutral alcohol, as well as Indian Made Indian Liquor and Indian Made Foreign Liquor in the categories of whisky, brandy, rum, gin, and vodka; and rectified spirit and hand sanitizers. The company's brands include Central Province Whisky, Titanium Triple Distilled Vodka, Bombay Special Whisky, Desi Madira Masala, Superman Fine Whisky, James Mc Gill Whisky, and Jamaican Magic Rum, as well as various franchise and licensed brands. Associated Alcohols & Breweries Limited was incorporated in 1989 and is based in Indore, India.

How the Company Makes Money

The company primarily generates revenue through the sale of its alcoholic beverages, which include a range of spirits such as whiskey, vodka, rum, and gin, as well as beer and other ready-to-drink products. ASALCBR's revenue model is built on both direct sales to consumers and distribution agreements with local and national retailers, bars, and restaurants. Additionally, the company benefits from strategic partnerships with distributors to enhance its market reach. Seasonal promotions and marketing campaigns also play a crucial role in boosting sales during peak drinking seasons. The regulatory environment in various states can impact pricing and distribution, but ASALCBR adapts its strategies to optimize profitability across its diverse product lines.

Associated Alcohols & Breweries Ltd. Financial Statement Overview

Summary

Associated Alcohols & Breweries Ltd. demonstrates strong revenue and profit growth, supported by efficient cost management and a solid balance sheet. However, significant capital investments result in negative Free Cash Flow, which may affect short-term liquidity.

Income Statement

The company shows strong revenue growth with a 42.5% increase from 2024 to 2025. Gross Profit Margin improved to 32.2% in 2025, indicating efficient production. Net Profit Margin increased to 7.6%, reflecting better cost control and profitability. However, EBITDA Margin is low at 11.9%, suggesting room for operational efficiency improvements.

Balance Sheet

The Debt-to-Equity Ratio is stable at 0.20, reflecting prudent financial management. Return on Equity improved to 15.6%, showing efficient use of equity to generate profits. The Equity Ratio is strong at 72.5%, indicating a solid asset base funded by equity. However, the increase in total liabilities requires monitoring.

Cash Flow

Operating Cash Flow is positive and growing, but Free Cash Flow remains negative due to high capital expenditures. The Operating Cash Flow to Net Income Ratio is 0.91, suggesting good cash conversion. However, the negative Free Cash Flow to Net Income Ratio indicates heavy investment impacting liquidity.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	10.91B	10.76B	7.60B	7.01B	5.13B	4.36B
Gross Profit	3.79B	3.47B	2.52B	3.27B	1.10B	1.18B
EBITDA	1.41B	1.32B	863.59M	712.41M	961.91M	936.19M
Net Income	873.72M	814.16M	506.23M	415.56M	608.06M	579.57M
Balance Sheet
Total Assets	0.00	7.18B	6.19B	5.38B	4.00B	3.30B
Cash, Cash Equivalents and Short-Term Investments	11.88M	11.88M	429.20M	631.00M	805.12M	783.28M
Total Debt	0.00	1.02B	1.08B	1.00B	54.41M	112.36M
Total Liabilities	-5.20B	1.97B	1.96B	1.75B	873.73M	779.19M
Stockholders Equity	5.20B	5.20B	4.23B	3.63B	3.13B	2.52B
Cash Flow
Free Cash Flow	0.00	-121.26M	-756.76M	-861.16M	395.00M	542.50M
Operating Cash Flow	0.00	739.15M	284.20M	67.63M	792.33M	667.00M
Investing Cash Flow	0.00	-830.88M	-324.88M	-942.24M	-699.80M	-647.16M
Financing Cash Flow	0.00	9.28M	126.57M	862.65M	-85.40M	-33.79M

Associated Alcohols & Breweries Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 941.55
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:ASALCBR, the sentiment is Negative. The current price of 941.55 is above the 20-day moving average (MA) of 853.61, above the 50-day MA of 916.96, and below the 200-day MA of 1035.81, indicating a bearish trend. The MACD of -34.69 indicates Negative momentum. The RSI at 42.50 is Neutral, neither overbought nor oversold. The STOCH value of 65.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:ASALCBR.

Associated Alcohols & Breweries Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GMBREW	75 Outperform	₹22.12B	13.55	―	0.72%	―	―
TI	66 Neutral	₹89.74B	30.65	―	0.21%	3.35%	56.08%
ASALCBR	66 Neutral	₹15.97B	17.69	―	0.21%	16.02%	48.63%
SDBL	63 Neutral	₹17.40B	16.96	―	―	-0.87%	10.87%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
SULA	57 Neutral	₹15.47B	31.53	―	1.67%	-2.15%	-42.78%
RKDL	41 Neutral	₹482.64M	403.82	―	―	4.30%	-40.22%

Associated Alcohols & Breweries Ltd. Corporate Events

Associated Alcohols & Breweries Schedules Analyst Meet With Nippon Life India AMC

Associated Alcohols & Breweries Limited has notified the stock exchanges that it will hold a virtual one-on-one meeting with Nippon Life India Asset Management on January 14, 2026, as part of its scheduled interactions with analysts and institutional investors under SEBI’s disclosure regulations. The company emphasized that the meeting agenda will not involve sharing any unpublished price-sensitive information, underscoring its adherence to regulatory requirements and commitment to transparency in its engagement with the investment community.

Associated Alcohols & Breweries Schedules Analyst and Investor Meeting

Associated Alcohols & Breweries Ltd. has announced a scheduled meeting with analysts and institutional investors on December 19, 2025, at their plant in Barwaha, Indore. This meeting, which includes a site visit, aims to engage stakeholders without sharing any unpublished price-sensitive information, reflecting the company’s commitment to transparency and regulatory compliance.

Associated Alcohols & Breweries Ltd. Releases Q2 FY 2025-26 Earnings Presentation

Associated Alcohols & Breweries Ltd. has released its earnings presentation for the second quarter of the fiscal year 2025-26, which ended on September 30, 2025. This announcement, made in compliance with SEBI regulations, provides stakeholders with insights into the company’s financial performance and strategic positioning for the quarter. The presentation is accessible on the company’s website, reflecting transparency and engagement with investors.

Associated Alcohols & Breweries Announces Financial Results and Management Changes

Associated Alcohols & Breweries Ltd. announced the approval of its unaudited financial results for the quarter and six months ending September 30, 2025. The company also reported significant management changes, with the resignation of CFO Tushar Bhandari and the appointment of Dilip Kumar Inani as the new CFO. Additionally, the company plans to amend its Memorandum and Articles of Association to include captive power generation, and it has authorized the submission of a resolution plan for SDF Industries Limited.

Associated Alcohols & Breweries Joins ‘Saksham Niveshak’ Campaign for Shareholder Engagement

Associated Alcohols & Breweries Ltd. announced its participation in the ‘Saksham Niveshak’ campaign, a 100-day initiative aimed at updating KYC and shareholder engagement to prevent the transfer of unpaid dividends to the Investor Education and Protection Fund. This campaign, directed by the Investor Education and Protection Fund Authority, highlights the company’s commitment to regulatory compliance and shareholder communication, potentially enhancing its reputation and operational transparency.