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

• Market Cap: ₹13.41B
• Dividend Yield: 0.21%
• Average Volume (3M): 3.97K
• Price to Earnings (P/E): 16.6
• Beta (1Y): 1.89
• Revenue Growth: 16.02%
• EPS Growth: 48.63%
• Country: IN
• Employees: 567
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Beverages - Wineries & Distilleries
• EPS (TTM): 14.40
• 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): 46.75
• Revenue Forecast (FY): ₹11.30B

• Rating: 64 Neutral
• Price Target: ₹756.00 ▼(-19.71% Downside)
• Action: Reiterated Date: 03/18/26
• Date: Action: Reiterated 03/18/26

The score is supported primarily by strong financial performance and a conservative balance sheet, but is materially weighed down by weak technicals (price below all key moving averages and negative MACD). Valuation is reasonable on P/E, though the low dividend yield and negative free cash flow limit upside in the score.

Positive Factors

Strong revenue growth

A 42.5% year-over-year revenue increase indicates durable demand expansion and successful distribution or product momentum. Sustained top-line growth expands scale, supports margin improvement, and provides a larger base for reinvestment, reducing reliance on financing over time.

Improved gross and net margins

Rising gross and net margins reflect improved production efficiency and tighter cost control or pricing power. Sustained margin expansion enhances cash generation potential, builds resilience to input cost swings, and improves the firm's ability to fund growth or absorb shocks long term.

Conservative balance sheet

Low leverage and a high equity ratio provide financial flexibility and downside protection, reducing refinancing risk. An improved ROE shows efficient use of capital. This prudent structure supports long-term investment, strategic optionality, and resilience through industry cycles.

Negative Factors

Negative free cash flow

Persistent negative free cash flow from elevated capex constrains liquidity and limits internal funding for dividends, debt paydown, or M&A. Even with good operating cash conversion, prolonged negative FCF increases dependence on external financing and raises execution risk for investments.

Low EBITDA margin

A sub-12% EBITDA margin indicates limited operating leverage and a thinner buffer against cost inflation or volume shocks. Unless operational efficiencies or higher-margin mix are achieved, low EBITDA constrains cash flow generation and the firm's capacity to sustainably fund growth or reduce leverage.

Rising total liabilities to monitor

An uptick in total liabilities can pressure liquidity and financial flexibility if it outpaces asset growth. Even with low D/E, rising obligations may signal working capital stress or contingent commitments, increasing refinancing and interest-rate exposure over the medium term if not controlled.

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

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Associated Alcohols & Breweries Ltd. Financial Statement Overview

Summary

Strong growth and profitability improvement (revenue +42.5% YoY; gross margin 32.2%; net margin 7.6%) and a solid balance sheet (D/E 0.20; equity ratio 72.5%). Score is tempered by low EBITDA margin (11.9%) and negative free cash flow driven by high capital expenditures.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	10.90B	10.76B	7.60B	7.01B	5.13B	4.36B
Gross Profit	4.05B	3.47B	2.52B	3.27B	1.10B	1.18B
EBITDA	1.39B	1.32B	863.59M	712.41M	961.91M	936.19M
Net Income	860.60M	814.16M	506.23M	415.56M	608.06M	579.57M
Balance Sheet
Total Assets	7.76B	7.18B	6.19B	5.38B	4.00B	3.30B
Cash, Cash Equivalents and Short-Term Investments	541.93M	11.88M	429.20M	631.00M	805.12M	783.28M
Total Debt	748.34M	1.02B	1.08B	1.00B	54.41M	112.36M
Total Liabilities	1.89B	1.97B	1.96B	1.75B	873.73M	779.19M
Stockholders Equity	5.87B	5.20B	4.23B	3.63B	3.13B	2.52B
Cash Flow
Free Cash Flow	264.98M	-121.26M	-756.76M	-861.16M	395.00M	542.50M
Operating Cash Flow	556.66M	739.15M	284.20M	67.63M	792.33M	667.00M
Investing Cash Flow	-471.47M	-830.88M	-324.88M	-942.24M	-699.80M	-647.16M
Financing Cash Flow	-2.30M	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: Positive
• RSI: Positive
• STOCH: Positive

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 786.00, above the 50-day MA of 833.66, and below the 200-day MA of 989.19, indicating a bearish trend. The MACD of -38.25 indicates Positive momentum. The RSI at 23.69 is Positive, neither overbought nor oversold. The STOCH value of 8.84 is Positive, 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	₹22.07B	16.42	―	0.72%	―	―
TI	66 Neutral	₹110.31B	-24.49	―	0.21%	3.35%	56.08%
SDBL	66 Neutral	₹14.26B	121.41	―	―	-0.87%	10.87%
ASALCBR	64 Neutral	₹13.41B	16.60	―	0.21%	16.02%	48.63%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
SULA	57 Neutral	₹12.80B	50.36	―	1.67%	-2.15%	-42.78%
RKDL	42 Neutral	₹444.00M	724.38	―	―	4.30%	-40.22%

Associated Alcohols & Breweries Ltd. Corporate Events

Associated Alcohols & Breweries Schedules Q3 FY26 Earnings Call on 5 February

Associated Alcohols & Breweries Ltd. has scheduled an earnings conference call for investors and analysts to discuss its financial results for the third quarter and nine months of FY 2025-26 on Thursday, 5 February 2026 at 4:00 pm IST. The call, hosted by Go India Advisors, will feature the company’s senior leadership, including the Whole Time Director & CEO, another Whole Time Director, and the Chief Financial Officer, underscoring management’s intent to provide detailed updates on performance and outlook to market participants and maintain transparent communication with stakeholders.

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.