Associated Alcohols & Breweries Ltd Falls to 52-Week Low of Rs.812.05

Stock Performance and Market Context

On 20 Jan 2026, Associated Alcohols & Breweries Ltd’s stock touched an intraday low of Rs.812.05, representing a 2.64% decline on the day and a 1.58% drop compared to the previous close. This new 52-week low comes after the stock has experienced an 11-day consecutive decline, resulting in a cumulative loss of 13.76% over this period. The stock’s performance today notably underperformed the beverages sector by 1.44%, signalling relative weakness within its industry group.

The stock is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating sustained downward momentum. This technical positioning suggests that the stock has been unable to find short-term or medium-term support levels.

In comparison, the broader market has also faced headwinds. The Sensex opened flat but declined by 320.54 points, or 0.43%, closing at 82,886.84. Despite this, the Sensex remains within 3.95% of its 52-week high of 86,159.02. However, the index has been on a three-week losing streak, shedding 3.35% in that timeframe. The Sensex’s 50-day moving average remains above its 200-day moving average, indicating a longer-term positive trend despite recent weakness.

Long-Term and Recent Financial Performance

Over the past year, Associated Alcohols & Breweries Ltd has recorded a total return of -30.74%, significantly underperforming the Sensex’s 7.54% gain and the BSE500’s 6.15% return. This divergence highlights the stock’s relative weakness amid a generally positive market environment.

Financially, the company’s operating profit has grown at an annualised rate of 14.95% over the last five years, which is modest within the beverages sector. However, recent quarterly results have shown some contraction. The latest quarterly profit after tax (PAT) stood at Rs.14.01 crore, down 35.9% compared to the average of the previous four quarters. Net sales for the quarter declined by 6.9% to Rs.253.84 crore, while the debtors turnover ratio for the half-year was at a low 20.39 times, indicating slower collection efficiency.

Valuation and Financial Ratios

Despite the recent price decline, Associated Alcohols & Breweries Ltd maintains some attractive valuation metrics. The company’s return on capital employed (ROCE) stands at 17.9%, which is considered very attractive within the sector. Additionally, the enterprise value to capital employed ratio is a low 2.5, suggesting the stock is trading at a discount relative to its capital base.

The company’s debt to equity ratio remains low at an average of 0.05 times, indicating a conservative capital structure with limited leverage. This financial prudence may provide some cushion amid the current market pressures.

Interestingly, while the stock price has fallen by nearly 31% over the last year, the company’s profits have increased by 48.8% during the same period. This disparity is reflected in a price-to-earnings-to-growth (PEG) ratio of 0.4, which is generally considered low and indicative of undervaluation relative to earnings growth.

Shareholder and Market Sentiment

Promoter confidence in the company appears to have strengthened recently, with promoters increasing their stake by 1.93% over the previous quarter. They now hold 61.22% of the company’s shares. This increase in promoter holding may be interpreted as a sign of commitment to the company’s prospects despite the recent share price weakness.

However, the company’s Mojo Score currently stands at 31.0, with a Mojo Grade of Sell, downgraded from Hold on 20 Oct 2025. The Market Cap Grade is 3, reflecting a mid-tier market capitalisation. These ratings underscore the cautious stance on the stock based on its recent performance and financial metrics.

Comparative Performance and Sector Positioning

Associated Alcohols & Breweries Ltd operates within the beverages industry, a sector that has generally shown resilience. However, the stock’s 52-week high was Rs.1496.30, indicating a substantial decline of approximately 45.8% from that peak to the current 52-week low. This wide price range reflects significant volatility and a challenging environment for the company’s shares.

In contrast, the broader market indices and many peers have maintained more stable or positive returns over the same period. The stock’s underperformance relative to the BSE500, which generated 6.15% returns in the last year, further highlights its relative weakness.

While the company’s fundamentals such as low leverage and attractive ROCE provide some positive context, the recent declines in quarterly sales and profits have weighed on sentiment and share price performance.

Summary of Key Metrics

To summarise, the stock’s key recent metrics include:

• New 52-week low price: Rs.812.05


• 11 consecutive days of price decline, total loss of 13.76%


• Quarterly PAT decline of 35.9% to Rs.14.01 crore


• Quarterly net sales down 6.9% to Rs.253.84 crore


• Low debt to equity ratio of 0.05 times


• ROCE at 17.9%, enterprise value to capital employed at 2.5


• Promoter stake increased to 61.22%


• Mojo Score of 31.0 with a Sell grade

These figures collectively illustrate the current state of the stock and company performance, providing a comprehensive view of the factors influencing the recent price movement.

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