Understanding the Current Rating
The 'Buy' rating assigned to Allied Blenders & Distillers Ltd indicates a positive outlook based on a comprehensive evaluation of four key parameters: Quality, Valuation, Financial Trend, and Technicals. This rating suggests that the stock is expected to deliver favourable returns relative to its peers and the broader market, making it an attractive option for investors seeking growth in the beverages sector.
Quality Assessment
As of 29 December 2025, Allied Blenders & Distillers exhibits an average quality grade. This reflects a solid operational foundation, supported by high management efficiency. The company’s Return on Capital Employed (ROCE) stands at an impressive 17.47%, signalling effective utilisation of capital to generate profits. Such a ROCE level is indicative of a well-managed business with sustainable earnings potential. Furthermore, the company has demonstrated consistent profitability, declaring positive results for six consecutive quarters, which reinforces the stability of its earnings stream.
Valuation Perspective
The valuation grade for Allied Blenders & Distillers is currently attractive. The stock’s Enterprise Value to Capital Employed ratio is a modest 7.4, suggesting that the market values the company reasonably relative to the capital it employs. This valuation metric, combined with the company’s robust ROCE, indicates that investors are paying a fair price for the quality of earnings generated. The attractive valuation is further supported by the stock’s strong returns over the past year, with a 41.95% gain as of 29 December 2025, signalling that the market recognises the company’s growth prospects without excessive premium.
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- - Fundamental Analysis
- - Technical Signals
- - Peer Comparison
Financial Trend Analysis
The financial trend for Allied Blenders & Distillers is positive, reflecting strong growth momentum. As of 29 December 2025, the company’s operating profit has grown at an annualised rate of 38.70%, underscoring its ability to expand earnings efficiently. The latest nine-month Profit After Tax (PAT) stands at ₹199.51 crores, while quarterly net sales have reached a record ₹990.06 crores. These figures highlight the company’s capacity to scale operations and improve profitability consistently. Over the past year, profits have surged by an extraordinary 2224%, a remarkable achievement that supports the bullish financial outlook.
Technical Outlook
From a technical standpoint, Allied Blenders & Distillers is mildly bullish. Despite a recent one-day decline of 2.47% and a one-month dip of 8.50%, the stock has shown resilience with a three-month gain of 17.03% and a six-month increase of 41.18%. The year-to-date return of 39.23% further confirms the stock’s upward trajectory. These technical signals suggest that the stock maintains positive momentum, which may attract investors looking for growth opportunities supported by chart patterns and market sentiment.
Investor Implications
For investors, the 'Buy' rating on Allied Blenders & Distillers Ltd implies a recommendation to consider adding or holding the stock within their portfolios. The combination of attractive valuation, solid quality metrics, positive financial trends, and supportive technical indicators provides a compelling case for investment. However, investors should remain mindful of sector-specific risks and market volatility, especially given the stock’s recent short-term fluctuations.
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Company Profile and Market Position
Allied Blenders & Distillers Ltd operates within the beverages sector and is classified as a small-cap company. The majority shareholding is held by promoters, which often indicates stable ownership and strategic direction. The company’s focus on premiumisation and expanding market reach has contributed to its robust financial performance. Its ability to sustain growth in a competitive sector is reflected in the consistent quarterly results and strong return metrics.
Summary of Key Metrics as of 29 December 2025
The stock’s Mojo Score currently stands at 71.0, up from 64.0 at the time of the rating change on 22 December 2025. This score reflects the overall strength of the stock based on MarketsMOJO’s proprietary analysis. The stock’s returns over various periods are noteworthy: a one-year return of 41.95%, six-month return of 41.18%, and a three-month return of 17.03%. These figures demonstrate sustained investor confidence and strong market performance.
In conclusion, Allied Blenders & Distillers Ltd’s 'Buy' rating is supported by a balanced assessment of quality, valuation, financial trends, and technical factors. Investors seeking exposure to the beverages sector with a focus on growth and value may find this stock a suitable addition to their portfolios, provided they consider their individual risk tolerance and investment horizon.
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