Shares of Globus Spirits extended its bull run for second straight day, rising over 7 percent to hit a lifetime high of Rs 1,153 on September 2. The uptick came after Motilal Oswal Mutual Fund bought 2 lakh equity shares, representing 0.69 percent stake of Globus Spirits' total equity via block deal on NSE.
With this rise, the stock has leapt a staggering 28 percent in the past 2 days, beating benchmark Nifty 50's modest 0.7 percent surge. Over the past 3 months, the stock of this distilleries company has jumped over 54 percent as compared to Nifty 50's 12 percent rise.
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On August 30, Motilal Oswal MF bought Globus Spirits shares at an average price of Rs 1,071.49. It held nil or below 1 percent stake in the company, showed June 2024 shareholding data.
Globus Spirits is engaged in making, marketing, and selling of branded Indian made foreign liquor and bulk alcohol comprising rectified spirit and ENA. The company is also involved in franchisee bottling for reknowned brand owners. It operates five fully integrated grain-based distilleries at Behror (Rajasthan), Samalkha (Haryana), Panagarh (West Bengal), Vaishali (Bihar), and Baharagora (Jharkhand), with a combined capacity of around 268 million litres per annum.
The company has also forayed into the Ready-to-Drink (RTD) segment with the formation of a subsidiary, called Bored Beverages.
Two months ago, analysts at Care Ratings assigned a stable outlook to Globus Spirits’ long-term bank facilities, citing a turnaround in its imported foreign liquor segment and its ability to consistently maintain operating margins above 20 percent.
Care Ratings noted that the 'Stable' outlook for the long-term rating reflects Globus Spirits’ capacity to uphold its market position in the country liquor (CL) and bulk alcohol (ENA and ethanol) segments. The outlook also takes into account the company's steady financial risk profile, characterised by a growing scale of operations while maintaining its capital structure and debt protection metrics at current levels.
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