G.M. Breweries Ltd. (GMBREW) AI Stock Analysis

• Market Cap: ₹22.03B
• Dividend Yield: 0.72%
• Average Volume (3M): 201.61K
• Price to Earnings (P/E): 16.4
• Beta (1Y): 1.84
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: IN
• Employees: 203
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Beverages - Wineries & Distilleries
• EPS (TTM): 18.39
• Shares Outstanding: 22,846,924
• 10 Day Avg. Volume: 33,119
• 30 Day Avg. Volume: 201,613
• PEG Ratio: -0.79
• Price to Book (P/B): 1.61
• Price to Sales (P/S): 1.04
• P/FCF Ratio: 9.37
• 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: 75 Outperform
• Price Target: ₹1,085.00 ▼(-10.15% Downside)
• Action: N/A Date: 01/04/26
• Date: Action: N/A 01/04/26

The score is primarily driven by strong financial stability (very low leverage and improved recent cash generation) and a clear uptrend in the stock. The main offsets are compressed/volatile margins with weaker earnings leverage in 2025, plus near-overbought technical readings and a low dividend yield.

Positive Factors

Very low leverage, strong balance sheet

Near-zero debt through 2020–2024 and only modest leverage in 2025 provide durable financial resilience. Low indebtedness reduces refinancing and interest risk, preserves capacity for strategic investments or acquisitions, and supports survival through industry cycles over many quarters.

Improved operating cash generation in 2025

Operating cash flow exceeding net income in 2025 indicates stronger cash conversion and earnings quality. Consistent cash generation enhances the company’s ability to fund capex, working capital and shareholder returns internally, reducing reliance on external financing over the medium term.

Top-line rebound and growing equity base

A clear revenue rebound in 2025 coupled with steady equity growth strengthens internal funding capacity and indicates recovered demand. This combination supports reinvestment in brands and distribution, reduces financing needs, and underpins multi‑quarter strategic initiatives and resilience.

Negative Factors

Significant gross margin compression

A fall in gross margin from ~27–32% historically to ~11% is a large structural hit to core profitability. Persistently compressed gross margins reduce earnings power, leave less room to absorb input cost shocks, and require sustained pricing or cost restructuring to restore durable returns.

Net income fell despite higher revenue

Earnings falling while revenue rises indicates deteriorating operating leverage or rising operating costs. This structural weakness limits the company’s ability to convert sales growth into profit, constraining internal investment, dividends, or margin recovery over multiple quarters without operational remediation.

Volatile cash flow and revenue history

Historical swings in revenue and cash flow — a large 2023 revenue drop, weak 2024 cash conversion (~0.64x) and volatile free cash flow — increase forecasting and capital allocation risk. Inconsistent cash generation can hinder steady investment and strategic execution over the medium term.

G.M. Breweries Ltd. Business Overview & Revenue Model

Company Description

G.M. Breweries Limited manufactures and sells alcoholic liquor in India. The company's alcoholic beverages include Indian made foreign liquor and country liquor. It offers its products under the G.M.SANTRA, G.M.DOCTOR, G.M.LIMBU PUNCH, and G.M.DILBAHAR SOUNF brand names. The company was incorporated in 1981 and is based in Mumbai, India.

How the Company Makes Money

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G.M. Breweries Ltd. Financial Statement Overview

Summary

Strong balance sheet strength (very low leverage; growing equity base) and improved 2025 operating cash flow slightly exceeding net income support a solid financial profile. Offsetting this, revenue and margins have been volatile, gross margin is materially lower than 2020–2022 levels, and net income fell in 2025 despite higher revenue—suggesting cost pressure and weaker operating leverage.

Income Statement

Revenue shows a sharp rebound in the latest annual period (2025) versus 2024, following a large drop in 2023 and a strong 2022—overall a volatile top-line trajectory. Profitability remains positive, but margins have compressed materially versus 2020–2022 levels (gross margin down to ~11% in 2024–2025 vs ~27–32% in 2020–2022), and net margin eased to ~9% in 2025 from ~11% in 2024. Net income declined in 2025 versus 2024 despite higher revenue, signaling weaker operating leverage and/or cost pressure.

Balance Sheet

The balance sheet is conservatively positioned with very low leverage: debt was zero from 2020–2024 and remains modest in 2025 (debt-to-equity ~0.06). Equity has grown steadily over time, supporting a stronger capital base. Returns on equity are healthy but have cooled from 2023–2024 levels (~18%) to ~14% in 2025, which may reflect the recent margin compression and earnings mix.

Cash Flow

Cash generation improved strongly in 2025 with operating cash flow rising meaningfully versus 2024 and slightly exceeding net income (about 1.03x), indicating solid earnings quality in the latest year. However, cash conversion was weaker in 2024 (operating cash flow covered only ~0.64x of net income), and free cash flow has been volatile across years, including unusually large swings (e.g., elevated free cash flow versus net income in 2022). Overall, the latest year is strong, but the historical variability adds risk.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	12.15B	14.61B	14.09B	5.94B	17.78B	3.40B
Gross Profit	1.82B	1.63B	1.51B	1.59B	14.35B	930.51M
EBITDA	1.81B	1.18B	1.88B	1.36B	1.23B	1.05B
Net Income	1.43B	1.29B	1.52B	998.65M	933.60M	800.90M
Balance Sheet
Total Assets	11.01B	10.98B	9.17B	7.69B	6.68B	5.73B
Cash, Cash Equivalents and Short-Term Investments	1.08B	939.21M	125.30M	232.21M	259.80M	62.99M
Total Debt	12.23M	557.03M	0.00	0.00	0.00	0.00
Total Liabilities	1.17B	1.59B	951.20M	874.01M	769.84M	679.53M
Stockholders Equity	9.84B	9.39B	8.22B	6.82B	5.91B	5.05B
Cash Flow
Free Cash Flow	0.00	1.62B	592.68M	2.03B	974.69M	216.03M
Operating Cash Flow	0.00	1.62B	592.68M	960.38M	974.69M	14.11M
Investing Cash Flow	0.00	-1.49B	-484.91M	-867.80M	-949.18M	100.97M
Financing Cash Flow	0.00	-133.69M	-113.38M	-91.77M	-73.25M	-55.47M

G.M. Breweries Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GMBREW	75 Outperform	₹22.03B	16.42	―	0.72%	―	―
TI	66 Neutral	₹108.25B	-24.49	―	0.21%	3.35%	56.08%
SDBL	66 Neutral	₹14.53B	121.41	―	―	-0.87%	10.87%
ASALCBR	66 Neutral	₹13.60B	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	₹13.14B	50.36	―	1.67%	-2.15%	-42.78%
RKDL	42 Neutral	₹449.28M	724.38	―	―	4.30%	-40.22%

G.M. Breweries Ltd. Corporate Events

G.M. Breweries Files Integrated Financial Results for December 2025 Period

G.M. Breweries Ltd. has submitted its integrated financial filing for the quarter and nine months ended December 31, 2025, to the National Stock Exchange of India and the Bombay Stock Exchange, in line with recent SEBI, NSE, and BSE circulars standardizing such disclosures. The results, reviewed by the audit committee and approved by the board on January 6, 2026, reflect the company’s continued focus on its sole operating segment of country liquor, with prior-period figures regrouped where necessary and tax provisions duly accounted for, providing investors and regulators with an updated view of its operating performance over the reporting period.