Associated Alcohols & Breweries Ltd Stock Hits 52-Week Low at Rs.826.15

Stock Performance and Market Context

The stock has experienced a consecutive 10-day decline, resulting in a cumulative loss of 12.63% over this period. Today’s fall of 0.89% further underperformed the beverages sector by 0.25%. Currently, Associated Alcohols & Breweries Ltd is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained bearish momentum.

In contrast, the broader market index, Sensex, despite a negative close of 0.73% at 82,961.69 points, remains 3.85% below its 52-week high of 86,159.02. The Sensex has been on a three-week consecutive decline, losing 3.27% in that span, indicating a cautious market environment. However, the stock’s 1-year performance of -27.85% starkly contrasts with the Sensex’s positive 8.27% return, highlighting its relative underperformance.

Financial Metrics and Profitability Trends

Recent quarterly results reveal a decline in key financial indicators. The company’s net sales for the quarter stood at Rs.253.84 crores, down 6.9% compared to the previous four-quarter average. Profit after tax (PAT) also fell sharply by 35.9% to Rs.14.01 crores, signalling pressure on profitability. Additionally, the debtors turnover ratio for the half-year period is at a low 20.39 times, suggesting slower collection efficiency relative to historical levels.

Over the last five years, the company’s operating profit has grown at an annual rate of 14.95%, which is considered modest within the beverages sector. This slower growth rate has contributed to the stock’s downgrade from a Hold to a Sell rating on 20 Oct 2025, as reflected in its current Mojo Score of 31.0 and Mojo Grade of Sell.

Valuation and Capital Structure

Despite the recent price weakness, Associated Alcohols & Breweries Ltd maintains a relatively attractive valuation profile. The company’s return on capital employed (ROCE) stands at 17.9%, which is considered robust within its industry. Its enterprise value to capital employed ratio is 2.6, indicating a valuation discount compared to peer averages.

The company’s debt to equity ratio remains low at 0.05 times on average, reflecting a conservative capital structure with limited leverage. This financial prudence may provide some stability amid market volatility.

Interestingly, while the stock price has declined by 27.85% over the past year, the company’s profits have increased by 48.8%, resulting in a price-to-earnings-growth (PEG) ratio of 0.4. This divergence between earnings growth and share price performance suggests a disconnect that has contributed to the stock’s current valuation levels.

Shareholding and Promoter Activity

Promoter confidence 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 equity, signalling a commitment to the business despite the share price decline. This increased promoter holding may be viewed as a stabilising factor in the company’s ownership structure.

Comparative Market Performance

Over the last year, Associated Alcohols & Breweries Ltd has underperformed not only the Sensex but also the broader BSE500 index. While the BSE500 generated returns of 7.36% in the same period, the stock delivered a negative return of 27.85%. This underperformance reflects the challenges faced by the company relative to its peers and the overall market.

The stock’s 52-week high was Rs.1,496.30, indicating a significant decline of approximately 44.8% from that peak to the current 52-week low of Rs.826.15. This wide price range underscores the volatility experienced by the stock over the past year.

Sector and Industry Context

Operating within the beverages sector, Associated Alcohols & Breweries Ltd faces competitive pressures and market dynamics that have influenced its recent performance. The sector itself has seen mixed results, with some companies maintaining growth trajectories while others have experienced headwinds. The company’s modest operating profit growth rate of 14.95% annually over five years is below the pace required to keep pace with more dynamic peers in the industry.

Summary of Key Metrics

To summarise, the stock’s key metrics as of the latest reporting period are:

• New 52-week low price: Rs.826.15


• 10-day consecutive decline: -12.63% returns


• Quarterly net sales: Rs.253.84 crores, down 6.9%


• Quarterly PAT: Rs.14.01 crores, down 35.9%


• Debtors turnover ratio (HY): 20.39 times


• Debt to equity ratio (average): 0.05 times


• ROCE: 17.9%


• Enterprise value to capital employed: 2.6


• PEG ratio: 0.4


• Promoter stake: 61.22%, increased by 1.93% last quarter


• Mojo Score: 31.0 (Sell), downgraded from Hold on 20 Oct 2025

These figures provide a comprehensive view of the company’s current financial and market standing, illustrating the factors behind the recent share price decline and 52-week low.

Market Sentiment and Outlook

The stock’s downgrade to a Sell rating by MarketsMOJO, accompanied by a Mojo Score of 31.0, reflects a cautious stance based on the company’s recent financial performance and relative valuation. The downgrade from Hold on 20 Oct 2025 highlights the evolving assessment of the company’s growth prospects and market positioning.

While the stock is trading at a discount compared to its peers’ historical valuations, the recent declines in sales and profitability have weighed on investor sentiment. The company’s low leverage and strong ROCE provide some financial stability, but the subdued growth and earnings contraction have contributed to the current price levels.

Conclusion

Associated Alcohols & Breweries Ltd’s fall to a 52-week low of Rs.826.15 marks a notable point in its recent market journey. The stock’s sustained decline over the past ten days, combined with weaker quarterly financial results and relative underperformance against benchmarks, has culminated in this new low. Despite some positive valuation metrics and increased promoter confidence, the company’s recent earnings and sales trends have exerted downward pressure on the share price.

Investors and market participants will continue to monitor the company’s financial disclosures and sector developments to gauge any shifts in performance or valuation dynamics.

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