Nomura has officially initiated coverage on Allied Blenders & Distillers, setting a target price of Rs 850 per share. This target signals an optimistic outlook for the company, suggesting a potential 20% growth trajectory from current levels.
Analysts at the firm highlight three primary pillars driving this bullish sentiment: a strategic shift toward premiumisation, robust backward integration, and a clear path toward significant margin expansion. These factors are expected to bolster the company’s bottom line effectively over the coming fiscal years.
The brokerage projects a compound annual growth rate (CAGR) of 26% for earnings per share (EPS) between FY26 and FY29. This aggressive growth forecast underscores confidence in the company's ability to capture market share within the competitive domestic liquor industry.
Despite the positive outlook, investors are advised to remain cautious regarding potential headwinds. Nomura noted that any unforeseen execution delays or a deceleration in the premium product adoption cycle could pose risks to these ambitious performance targets.
