Current Rating Overview
MarketsMOJO’s Sell rating on Associated Alcohols & Breweries Ltd indicates a cautious stance towards the stock, suggesting that investors may want to consider reducing exposure or avoiding new purchases at this time. The rating was adjusted on 08 Nov 2025, reflecting a reassessment of the company’s fundamentals, valuation, financial trends, and technical outlook. While the rating change date is important for context, it is crucial to understand the stock’s present-day standing, which is shaped by the latest available data as of 31 December 2025.
Here’s How the Stock Looks Today
As of 31 December 2025, Associated Alcohols & Breweries Ltd exhibits a mixed but predominantly negative profile across key investment parameters. The company’s Mojo Score currently stands at 31.0, categorised under the Sell grade, down from a previous Hold grade of 51. This 20-point decline in score underscores the challenges the company faces in maintaining growth and investor confidence.
Quality Assessment
The quality grade for the company is rated as average. This reflects moderate operational efficiency and profitability metrics that do not inspire strong confidence. The company’s operating profit has grown at an annualised rate of 14.95% over the past five years, which, while positive, is not sufficiently robust to offset other weaknesses. Moreover, the latest quarterly profit after tax (PAT) has declined sharply by 35.9% compared to the previous four-quarter average, signalling potential issues in sustaining earnings momentum.
Valuation Perspective
Valuation is currently very attractive, suggesting that the stock is trading at a price level that may appeal to value-oriented investors. Despite the negative outlook, the market price may offer a discount relative to the company’s intrinsic worth or sector peers. However, attractive valuation alone does not guarantee positive returns, especially when other fundamental and technical factors are unfavourable.
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- - Fundamental Analysis
- - Technical Signals
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Financial Trend
The financial grade is negative, reflecting deteriorating recent performance and weakening operational metrics. Net sales for the latest quarter stood at ₹253.84 crores, down 6.9% compared to the previous four-quarter average. This decline in top-line revenue is a concern, especially in a sector where growth is often driven by volume and brand strength. Additionally, the company’s debtors turnover ratio is at a low 20.39 times, indicating slower collection efficiency which can strain working capital management.
Technical Outlook
Technically, the stock is rated bearish. Price action over the past year has been weak, with the stock delivering a negative return of 13.81% year-to-date and over the last twelve months. This contrasts sharply with the broader market benchmark, the BSE500, which has generated a positive return of 5.56% over the same period. Shorter-term trends also reflect weakness, with the stock down 4.63% over the past month and 16.40% over six months. Such technical signals suggest limited near-term upside and heightened risk of further declines.
Stock Returns and Market Comparison
As of 31 December 2025, the stock’s performance has lagged significantly behind the market. While the BSE500 index has advanced by 5.56% over the last year, Associated Alcohols & Breweries Ltd has underperformed with a negative return of 13.81%. This underperformance highlights the challenges the company faces in delivering shareholder value relative to its peers and the broader market environment.
Investor Implications
The Sell rating from MarketsMOJO suggests that investors should exercise caution with Associated Alcohols & Breweries Ltd. The combination of average quality, very attractive valuation, negative financial trends, and bearish technicals paints a picture of a stock facing multiple headwinds. While the valuation may tempt value investors, the deteriorating fundamentals and weak price momentum imply that risks currently outweigh potential rewards.
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Summary
In summary, Associated Alcohols & Breweries Ltd’s current Sell rating reflects a comprehensive evaluation of its present-day fundamentals and market performance. Investors should note that while the stock’s valuation appears attractive, the negative financial trends and bearish technical outlook suggest caution. The company’s recent decline in profitability and sales, coupled with underperformance relative to the broader market, indicate that the stock may face continued challenges in the near term.
For investors, this rating serves as a signal to carefully assess risk exposure and consider alternative opportunities that demonstrate stronger financial health and positive momentum. Monitoring the company’s quarterly results and market developments will be essential to reassess its investment potential going forward.
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