Why Shares Of This Alcohol Company Is Locked In Upper Circuit For Fifth Straight Trading Day?

After the promoter and institutional investors bought a stake in the company on the open market on Friday, the shares of this alcohol manufacturing company were trapped in the upper circuit for the fifth trading day, up 5% at Rs 941, a new high on the National Stock Exchange (NSE).

Globus Spirits, with a capacity of 160 million litres, is India's largest grain-based Extra Neutral Alcohol (ENA) producer. In India, the company also sells Indian produced Indian liquor (IMIL) and premium IMFL.

The stock of the breweries and distilleries company has risen 28 percent in the last week, compared to a 1.5 percent gain in the Nifty50 index. Stock generated 516.37 percent over three years, compared to 33.04 percent for the Nifty Smallcap 100.

According to exchange records, promoter Ram Bagh Facility Services LLP purchased an additional 162,000 shares of Globus Spirits at Rs 862.05 per share on Wednesday, August 12, 2021, while Long Term Equity Fund purchased 175,000 shares of the company at Rs 862.05 per share on NSE through bulk deals.

In India, the company also sells Indian-produced Indian liquor (IMIL) and premium IMFL. The IMIL section accounted for about 42% of total revenues, with the rest coming from bulk alcohol (45%) and other sources. Rajasthan accounts for 80% of all IMIL sales.

Company Details

Mkt cap: 2.72TCr
P/E ratio: 19.24
Prev close: 896.20
52-wk high: 941.00
52-wk low: 150.50