KRChoksey's research report on GM BreweriesG.M. Breweries Limited (GMBL) was set up in the year 1981 by Mr. Jimmy William Almeida and is engaged in the activities of manufacturing and marketing of Country Liquor (CL). The company is growing steadily and has earned a dedicated customer base. GMBL is the largest manufacturer of country liquor in the state of Maharashtra with 25-30% market share and enjoys virtual monopoly in the district of Mumbai, Palghar and Thane.We believe the shift from illicit to branded players provides huge opportunity to grow. The industry has strong entry barriers, in which GMBL enjoys strong brand value in Maharashtra leading to customer loyalty. The incremental revenue with negligible capex, better cost management and margin focus, will lead to better profitability and improve return ratios going forward. At CMP of INR 649, the company trades at P/E of 10x (40% discount to sector PE) its FY17E EPS of INR 65.9 and arrived at price target of INR 1318 which gives an upside of 103% from current levels. For all recommendations, click here Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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