Stock Price Movement and Market Context
On 9 December 2025, Associated Alcohols & Breweries recorded an intraday low of Rs.898.5, representing a decline of 4.15% for the day. Despite this, the stock outperformed its sector by 1.19% during the trading session. 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 a sustained downward trend over multiple time frames.
In comparison, the Sensex opened at 84,742.87, down by 359.82 points or 0.42%, and was trading at 84,793.39 at the time of reporting, reflecting a 0.36% decline. The benchmark index remains 1.61% below its 52-week high of 86,159.02. Small-cap stocks led the market with the BSE Small Cap index gaining 0.3% on the day, contrasting with the performance of Associated Alcohols & Breweries.
One-Year Performance and Relative Positioning
Over the past year, Associated Alcohols & Breweries has recorded a negative return of 12.26%, underperforming the Sensex, which posted a positive return of 4.05% during the same period. The stock’s 52-week high was Rs.1,496.3, highlighting the extent of the decline to the current low.
This underperformance is notable given that the broader BSE500 index generated a modest return of 0.55% over the last year, while the stock’s returns remained in negative territory.
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Financial Metrics and Profitability Trends
Recent quarterly data shows that the company’s Profit After Tax (PAT) stood at Rs.14.01 crores, reflecting a decline of 35.9% compared to the average of the previous four quarters. Net sales for the quarter were Rs.253.84 crores, showing a reduction of 6.9% relative to the prior four-quarter average. These figures indicate a contraction in both sales and profitability in the short term.
The company’s debtors turnover ratio for the half-year period was recorded at 20.39 times, which is the lowest in recent periods, suggesting changes in receivables management or collection efficiency.
Long-Term Growth and Valuation Metrics
Over the last five years, the operating profit of Associated Alcohols & Breweries has grown at an annual rate of approximately 14.95%. While this reflects some growth, it is modest relative to more dynamic sectors within the market.
The company maintains a low average debt-to-equity ratio of 0.05 times, indicating limited leverage. Return on Capital Employed (ROCE) is reported at 17.9%, which is considered attractive within the beverages sector. The enterprise value to capital employed ratio stands at 2.9, suggesting a valuation that is relatively conservative compared to peers’ historical averages.
Despite the stock’s negative return over the past year, profits have risen by 48.8%, resulting in a price-to-earnings-to-growth (PEG) ratio of 0.5. This metric points to a valuation that may be discounted relative to the company’s earnings growth.
Shareholding and Promoter Activity
Promoter confidence appears to have strengthened, with promoters increasing their stake by 1.93% over the previous quarter. Currently, promoters hold 61.22% of the company’s shares, signalling a significant ownership position.
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Summary of Current Position
Associated Alcohols & Breweries’ stock reaching a 52-week low of Rs.898.5 reflects a period of subdued price performance amid broader market fluctuations. The stock’s position below all major moving averages underscores the prevailing downward momentum. Financial data reveals a contraction in recent quarterly sales and profits, while longer-term growth rates remain moderate.
Valuation metrics suggest the stock is trading at a discount relative to its historical peer group, supported by a low debt profile and a solid ROCE. Promoter shareholding has increased, indicating a maintained commitment to the company’s equity.
Market participants observing the stock will note its divergence from the broader market’s modest gains, particularly in the small-cap segment, and the challenges reflected in recent financial results.
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