The sugar industry is facing supply challenges due to demand constraints
Demand outlook stable but the sugarcane market is facing headwinds
The risk-reward ratio for the stock appears favourable due to solid business fundamentals and reasonable valuations
Solid business fundamentals and reasonable valuations balance the modest earnings outlook
With an improving earnings outlook on the back of correction in global commodities, along with the arrival of new sugarcane crop, margin recovery should gain momentum
GM Breweries' entry into the ethanol market could turn out to be a big growth engine for the overall business in the coming years
Headwinds may stay, but profitability is poised for a revival
With an installed capacity of 13.8 crore litres, GM Breweries is the single largest manufacturer of country liquor in Maharashtra.
Given its strong business fundamentals, the stock seems an interesting bet at current levels
Investors need to be mindful of volatility in the midcap space and should capitalise on the weakness
Dynamic Levels is bullish on GM Breweries Ltd has recommended buy rating on the stock with a target price of Rs 760 in its research report dated June 6, 2016.
KRChoksey is bullish on GM Breweries has recommended buy rating on the stock with a target price of Rs 975 in its research report dated April 8, 2016.
KRChoksey is bullish on GM Breweries and has recommended buy rating on the stock with a target price of Rs 1,318 in its research report dated January 12, 2016.
Firstcall is bullish on GM Breweries and has recommended buy rating on the stock with a target price of Rs 1250 in its research report dated January 9, 2016.
KRChoksey is bullish on GM Breweries and has recommended buy rating on the stock with a target price of Rs 1318 in its research report dated December 28, 2015.