GM BREWERIES
(CMP Rs 311 )
ENTER LEVEL – 290 TO 310 STOPLOSS-200
TARGET 600 IN 24 MONTHS
Incubated in 1981, GM Breweries produces country liquor and Indian
Made Foreign Liquor. It has its plant near Virar in Mumbai. As against equity
of Rs18.29 crore, the company has reserves of Rs348.53 crore. The promoters
hold 74.43%, FII hold 1.45% , renowned investor Mukul Agrawal hold 1.46 % and public
hold 22.86% stake in the company. In December quarter, the company's income decreased
from Rs124.55 crore to Rs119.62 crore, while profit decreased from 16.71 crore to
Rs. 13.98 crore. In last four years, the company has witnessed profit of
Rs18.63 crore,58.31 crore, 43.92 crore and 72.90 crore. The company's
fundamentals are strong but the stock has been moved to ASM Group. Therefore,
it can be considered for small investment.
Other projects include: a) Kharagpur – HDPE Pipe / Injection molded fittings
capacity; b) Kanpur:PVC Pipe capacity & c) Jalgaon: Moulded fitting
capacity. Expected commissioning for these projects is Q4FY20.Management
integrity is of the highest order. The stock has corrected by 35% in this
recent market meltdown.
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