Stock Price Movement and Market Context
On 14 Jan 2026, Associated Alcohols & Breweries Ltd recorded its lowest price in the past year at Rs.861.65. Despite opening the day with a gap up of 2.49%, reaching an intraday high of Rs.889.40, the stock ultimately settled near this 52-week low. The day’s performance showed a modest outperformance of 0.73% against the beverages sector, yet the stock remains below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling persistent downward pressure.
The broader market environment was mixed, with the Sensex opening lower at 83,358.54, down 269.15 points (-0.32%), and trading slightly below its 50-day moving average. The Sensex remains 3.14% shy of its 52-week high of 86,159.02. Small-cap stocks led the market gains, with the BSE Small Cap index rising by 0.13%, contrasting with the struggles of Associated Alcohols & Breweries Ltd.
Financial Performance and Valuation Metrics
Over the past year, the stock has declined by 19.03%, significantly underperforming the Sensex, which posted a 9.21% gain over the same period. This underperformance is mirrored in the company’s quarterly financials. The latest quarter’s profit after tax (PAT) stood at Rs.14.01 crores, reflecting a sharp fall of 35.9% compared to the average of the previous four quarters. Net sales also declined by 6.9% to Rs.253.84 crores in the latest quarter, indicating a contraction in revenue streams.
Despite these setbacks, the company maintains a low average debt-to-equity ratio of 0.05 times, suggesting a conservative capital structure. Return on capital employed (ROCE) remains relatively strong at 17.9%, and the enterprise value to capital employed ratio is an attractive 2.6, indicating the stock is trading at a discount relative to its capital base and peer valuations.
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Operational Efficiency and Market Position
The company’s debtor turnover ratio for the half-year period stands at 20.39 times, the lowest in recent history, which may indicate slower collection cycles or changes in credit terms. This metric, combined with the decline in sales and profits, has contributed to the stock’s subdued performance.
Associated Alcohols & Breweries Ltd’s Mojo Score currently sits at 31.0, with a Mojo Grade of Sell, downgraded from Hold on 20 Oct 2025. The market capitalisation grade is rated at 3, reflecting its small-cap status within the beverages sector. These ratings underscore the challenges the company faces in delivering consistent growth and shareholder returns.
Shareholder Confidence and Promoter Activity
In contrast to the stock’s price decline, promoter confidence appears to be strengthening. Promoters have increased their stake by 1.93% over the previous quarter, now holding 61.22% of the company’s equity. This increase in promoter holding may reflect a commitment to the company’s long-term prospects despite recent market headwinds.
Over the past year, while the stock price has fallen by 19.03%, the company’s profits have risen by 48.8%, resulting in a price-to-earnings-growth (PEG) ratio of 0.5. This suggests that the stock is trading at a valuation that does not fully reflect recent profit growth, although this has not yet translated into share price appreciation.
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Comparative Performance and Sector Overview
Within the beverages sector, Associated Alcohols & Breweries Ltd has underperformed relative to its peers and the broader market indices. The stock’s 52-week high was Rs.1,496.30, highlighting the extent of the recent decline. While the BSE500 index has delivered returns of 8.94% over the last year, this stock has generated negative returns of 19.03%, reflecting sector-specific and company-specific pressures.
The company’s long-term growth rate for operating profit has been 14.95% annually over the past five years, which is modest compared to some peers. This slower growth trajectory, combined with recent quarterly declines in sales and profits, has contributed to the cautious market sentiment.
Summary of Key Metrics
To summarise, Associated Alcohols & Breweries Ltd’s key financial and market metrics as of January 2026 are:
- New 52-week low price: Rs.861.65
- One-year stock return: -19.03%
- Sensex one-year return: +9.21%
- Latest quarterly PAT: Rs.14.01 crores (-35.9% vs previous 4Q average)
- Latest quarterly net sales: Rs.253.84 crores (-6.9% vs previous 4Q average)
- Debtors turnover ratio (HY): 20.39 times (lowest)
- Debt-to-equity ratio (average): 0.05 times
- ROCE: 17.9%
- Enterprise value to capital employed: 2.6
- Mojo Score: 31.0 (Sell, downgraded from Hold on 20 Oct 2025)
- Promoter holding: 61.22% (increased by 1.93% over previous quarter)
These figures illustrate the stock’s current valuation and performance challenges within the context of the beverages sector and broader market trends.
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