FMCG Beverages is on up move

GST bought a cheerful smile for most of the sectors but alcohol
companies were not given any benefits as the sector was kept out from
GST purview. The sector reacted to the Government move and the
stocks fell more than 40% from 2016 Mays high. GM Brew fell 41%
from its high of Rs. 722 in June and made low of Rs. 442 on 4th Aug,
Globus sprit fell 14% from high of Rs. 88 on 19th Aug to Rs. 75.35 on
29th Aug, Pincon fell 26% from its high of Rs. 89.40 to Rs. 65.40 and
Radico kahitan fell 17% from high of Rs. 100 to Rs. 83.

Recently the sector has shown buying on increase in consumer demand

Radico kahitan rose 44% from its low of Rs. 83.55 and is currently trading at Rs. 121.15. A quick look at
fundamentals of Radico kahitan- it registered revenue growth of 14.93% in QoQ. The profitability rose
45.76% QoQ and 19.01% YoY. Last quarter EPS stands at 1.62, the stock is trading at a PE multiple of
19.66. This is a best stock as per Dynamic research team. If sector continues its rally one can expect a
target of Rs. 155 for short term. 96 institutions hold position in the stock.
Globus Spirit rose 55% from its low of Rs. 65.65 and is currently trading at Rs. 101.40. The stock is
trading at PE multiple of 16.40 and 52 week high and low of the stock is at Rs. 101.60 and Rs. 50.60
respectively. The company regitered a growth of 2.71% QoQ and net profit jumped 46.53% QoQ. Short
term target of the company is at Rs. 122.
GM Brew share price zoomed 42.65% from its low of Rs. 442 and is currently trading at Rs. 622. The
company registered a marginla fall in revenue by 2.91% in QoQ and profitability fell by 27.78%. The
company does not have much investment from institutions. We suggest avoiding buy in this stock.
Pincon sprit rose 7% from its recent low of Rs. 65 and is currently trading at Rs. 70.10. The company
showed jump in revenue by 24.57% in QoQ and profitability rose by 26.83% in QoQ. Institutions have
not made any investment in this company till date.
Therefore looking at the above information Radico Khaitan looks promising for short term and
long term investment.

Therefore looking at above information Radico Khaitan looks

Debtpromising for short term and
Market
P/E
Equity
PAT
PAT
PAT
PAT
long term investment.
Avg.
Volume

Cap (Rs.
in Cr)

% FII
Holding

67.1

145346

120

1.28

-7.75

-7.19

0.64

3.37

GLOBUS SPIRITS

101.5

367918

253

16

0.63

6.33

4.32

3.49

3.47

GM BREWERIES

623

64171

888

16

12.58

17.42

15.57

15.89

PINCON SPIRIT

70.9

348989

300

11

2.8

9.13

7.2

6.16

PIONEER DISTILLERIES

198

33513

232

-0.4

2.67

18.66

14.14

-0.8

RADICO KHAITAN

123.5

1064864

1578

23

20

0.79

21.53

14.77

25.37

18.09

SOM DISTILLERIES

181

26492

484

30

0.51

7.09

1.01

2.56

6.37

43

1012362

282

-3.17

-43.14

-16.31

2.15

919.85

531518

23951

13

75

0.19

147.06

52.37

72.12

122.14

2286.05

226829

33165

24

33

2.09

43.8

5.43

40.95

11.61

INSTRUMENT
EMPEE DISTILLERIES

UB HOLDINGS
UBL
UNITED SPIRITS

Price

Ratio
(X)

Ratio
(X)

JUN'
16

MAR'
16

DEC'
15

JUN'
15

Disclaimer

The investment advice or guidance provided by way of recommendations, reports or other ways are solely the personal views of the
research team. Users are advised to use the data for the purpose of information and rely on their own judgment while making investment
decision.
Dynamic Equities Pvt. Ltd - SEBI Investment Advisory Reg. No.: INA300002022

Disclosure

Dynamic Equities Pvt. Ltd. is a member of NSE, BSE, MCX SX and a DP with NSDL & CDSL. It is also engaged in Investment Advisory Services
and Portfolio Management Services. Dynamic Commodities Pvt. Ltd., associate company, is a member of MCX & NCDEX. We declare that our
activities were neither suspended nor we have defaulted with any stock exchange authority with whom we are registered. SEBI, Exchanges
and Depositories have conducted the routine inspection and based on their observations have issued advise letters or levied minor penalty
on for certain operational deviations.
Answers to the Best of our knowledge and belief of Dynamic/ its Associates/ Research Analyst: DYNAMIC/its Associates/ Research Analyst/
his Relative:

Do not have any financial interest / any actual/beneficial ownership in the subject company.
Do not have any other material conflict of interest at the time of publication of the research report
Have not received any compensation from the subject company in the past twelve months
Have not managed or co-managed public offering of securities for the subject company.
Have not received any compensation for brokerage services or any products / services or any compensation or other benefits from
the subject company, nor engaged in market making activity for the subject company
Have not served as an officer, director or employee of the subject company

Article Written by
Vikash Kandoi