The Sensex will see 35444 jumping 35111

(Gujarat News Correspondent) Mumbai, Ta. Saturday, June 20, 2020

Various estimates are now being made of the time it will take for the world to recover from the Corona epidemic and the resulting economic losses, including Reliance Industries' Rs 1.16 lakh crore investment in geoplatforms and Rs 3,12 crore through right issues. The unprecedented success in raising the company has assured that the successful development of the company to get rid of the debt ahead of schedule will enable the country to emerge from the economic crisis as soon as possible. Reports of a forced downturn are likely to hit Indian markets along with global markets as reports of Corona's rise in the world continue, with Corona re-emerging in Beijing in China and new cases in the United States. Of course, with the Reliance factor, companies with attractive portfolio investors-FPIs from all over the world are available in the Indian market and with the setback China, Advantage India is likely to see an increase in valuation in the coming days. So caution will be needed in the face of the possibility of a geopolitical tension, even though the index-based is still trending.

With the June 2020 trend in futures and options (F&O) coming to an end next week, there will be a need for a rebound this week. Along with this week's corporate results, it will now look at ITC Ltd's June 3, Asian Paints' June, June's and Gail India's June 3 results. On the other hand, the strength of the US dollar against the rupee will be offset by fluctuations in its value as well as rising crude oil prices. Internationally, the one-year loan prime rate to be announced by China on June 6, 2020 and the market manufacturing, services and composite PMI for the month of June 2020 in the US will be monitored. In Europe, the euro area market for manufacturing, services and composite PMIs will be announced and global markets will keep an eye on them. Among these factors-events, next week is likely to see the Sensex jump 5,111 to 8 and the Nifty jumps to 101 with 10,111.

Dark Horse: Associated Alcohols & Breweries Ltd.

Listed on BSE (203), NSE (ASALCBR), Rs. Associated Alcohols & Breweries Ltd., with bonus equity, is active in the production of alcoholic liqueurs. The company operates through the portable alcohol segment. Which is in the business of bottling vodka and Scotch whiskey for international brands. Company Variety of Potable Alcohols, Country Liquor (CL), Rectified Spirits (RS), Extra Natural Alcohol (ENA), Distilled Grain Spirits, Indian Made Foreign Liquor (IMFL) Whiskey and others For bottling Scotch whiskey exists. The company manufactures and sells various brands such as Red & White, James McGill, Bombay Special (in the whiskey segment), Londonbridge (in the gin segment) and Jamaican Magic rum categories. The company has licensed brands including Smirnoff, Vodka, Captain Morgan Rum, Hague Scotch Whiskey, Masterstroke Whiskey, Glenn Drummond Single Molt Scotch Whiskey and Royal Crown Whiskey.

The company has been a leading supplier of Indian-made foreign liquor to the Madhya Pradesh government. In the year 2016-17, the company existed in Delhi and Madhya Pradesh. In 2016-17, the company entered five more states - Pondicherry, Kerala, Maharashtra and Chhattisgarh. The company has an installed capacity of 215 lakh liters of Extra Natural Alcohol (ENA). In 2016-17, the company earned 40 per cent of its total revenue from Indian-made foreign liquor (IMFL) and three per cent from premium offers. By 2020, the company expects to generate 40 per cent of its IMFL sales and 20 per cent of its IMFL revenue from premium varieties. The company has state-of-the-art 8-line bottling facilities near Indore in Madhya Pradesh in three sections and has an annual production capacity of 100 lakh cases.

The company has become a leading manufacturer of local liquors as well as a competent manufacturer of global brands. The company is moving forward with its highly reputable brands. The share of revenue from proprietary brands, which was 9 per cent in 2012-13, is expected to reach 20 per cent by 2020. The company initially sourced 100 per cent of its power needs from the grid, with the company sourcing 40 per cent of its electric needs from high-pressure turbines. The rest is getting from solar NGOs and grids. The company aims to expand as it becomes self-sufficient in power supply. This will reduce the company's electricity costs and make it possible to manufacture caterer feeds, which consume a large amount of electricity.

The company produces finest spirits with clean fermentation. The company's in-house brands include Central Province Superior Grain Whiskey and Titanium Triple Distilled Vodka. Other brands include Bombay Special Whiskey, Desi Madira Masala, Superman Fine Whiskey, James McGill Whiskey, Jamaica Magic Rum. Licensed brands include Bagpiper Whiskey, Blue Ribund Jean, Director Special, McDowell No. 1, White Mischief Vodka. The franchise brands are Black & White Scotch Whiskey, Black Dog, Captain Morgan, Smirnoff and Wet3.

Regarding the impact of the Corona epidemic-Covid 18, the company said that earlier the company's operations were suspended except for operations approved by lockdown orders. The company was approved by the Food and Drug Administration on March 7, 2020 for the manufacture of alcohol-based sanitizers. As per the approval, the company has started manufacturing at its plant as per routine from May 4, 2020. So that the direct effect of Covid-12 in the first quarter of the year 2020-21 cannot be denied enough. The company expects normal business operations to resume after June 2020 based on the factors affecting Covid-18 and related issues. Profitability is likely to be sufficient only during the lockdown period, the company said.

Book value:

Rs.5.5 for March 2018, Rs.2.5 for March 2016, Rs.2.5 for March 2016, Rs2.50 for March 2017, Rs2.50 for March 2018, Rs107.5 for expected March 2020, Rs. Rs.150.5 as on March 2021

Financial Outcome:

(1) Full year April 2016 to March 2018:

Net income rose to Rs 311.5 crore from Rs 4.5 crore, NPM net profit rose to Rs 20.8 crore from 2.6 crore, up 2.7 per cent from NPM Achieved Rs.

(3) Third Quarter October to December 2018:

Net income rose to Rs 12.5 crore from Rs 114.11 crore, NPM net profit rose 10.7 per cent to Rs 19.5 crore from Rs 3.15 crore, quarterly earnings per share rose to Rs 2.50 crore. Has increased to Rs.5.5.

(2) First nine months April 2013 to December 2018:

Net income rose to Rs 2.50 crore from Rs 4.5 crore, net profit rose to Rs 4.5 crore from Rs 4.5 crore, and nine-month earnings per share rose to Rs 21.5 from Rs 19. Has given.

(2) Expected full year April 2018 to March 2020:

The net profit is expected to be Rs 2.15 crore out of the expected net income of Rs 4.5 crore and full year earnings per share is expected to be Rs 30.5.

(2) Expected full year April 2020 to March 2021:

Expected net income is Rs. Earnings per share are expected to be Rs 2.50 crore with a net profit of Rs 4.10 crore.

(2) Valuation: B:

Even if we give the company a P / E of only 10 against the average P / E of 3 in the breweries and distilleries sector, the valuation is single B so that the share can go up to Rs.

Thus (1) 2.2% promoter holding, (2) production of alcoholic liqueurs, potable alcohol segment operating, (3) bottling vodka and scotch whiskey business for international brands, (3) all varieties of potable alcohols, Bottling Scotch whiskey for existing Extra Natural Alcohol, Distilled Grain Spirits, Indian Made Foreign Liquor Whiskey, Brandy, Rum, Jean and Vodka categories and other international brands is expected to be available in April. .2 and expected full year earnings per share from April 2020 to March 2021 against the expected earnings of Rs. 3.50 per share at present on the BSE, NSE against the expected earnings for the full year 2018-20 only P / EA of the year 2018-20 and the year 2020- With an expected earnings of Rs 21, only a P / EA of Rs 3.15 is available.

Manoj Shah: Research Analyst (SEBI REG. NO. INH000000107)

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