Small Cap Stock Rallied 2.74%, Trading 9.89% Away From 52 Week Low, Soars 450% In 3 Yrs, Buy

Nuvama, a leading brokerage firm, has assigned a "Buy" to Globus Spirits Ltd. The brokerage has given a target price of Rs 1,000 apiece to the stock of Globus Spirits, indicating a potential upside of 27% from its current level if purchased now. Globus Spirits is a small cap stock primarily engaged in the business of manufacture and sale of Indian Made Indian Liquor (IMIL), Indian Made Foreign Liquor (IMFL), Bulk Alcohol hand sanitiser, and Franchise Bottling. It has a market capitalisation of Rs 2,283.63 crore. Check below to know more:

Globus Spirits Stock Outlook & Returns

The Current Market Price (CMP) of Globus Spirits is Rs 792.85 apiece, jumped 2.74% from its previous close of Rs 771.70 apiece.

The stock gained 2.14% in the past 1 week and 7.17% in the past 3 months, respectively. However, it has fallen 36.79% in the past 1 year. It gave a robust 449.83% positive return in the past 3 years and 497.7% highest positive return in the past 5 years.

It recorded its 52 week low on 15 November 2022 at Rs 721.50 apiece, and CMP is trading 9.89% away from its 52 week low. Its 52 week high is Rs 1,641.40 apiece, recorded on 5 April 2022.

 

Nuvama Recommends Buy For a Target Price of Rs 1,000/share

The brokerage said, "Although margin pressures will continue in the near term, we remain positive on GBSL, underpinned by long-term drivers such as: i) GBSL being a key beneficiary of the ethanol-blending programme (where we expect grain-based ethanol to be a focus area), ii) its plans to introduce consumer brands across new markets and categories, and iii) increasing share of high-margin value plus products within total volumes."

It added, "We cut our FY23 EPS estimate by 21% due to adjustments to our EBITDA margin forecast. We broadly retain our FY24/FY25 EPS estimate to account for brownfield capacity expansion of 60klpd each in Jharkhand and West Bengal, partially offset by lower margin expectations. We have cut our target P/E multiple to 8x from 10x and rollover valuation to average earnings estimate for FY24 and FY25. Accordingly, our TP stands revised to INR1,000 from INR1,120 earlier, and indicates an EV/EBIDTA multiple of 9x. Retain 'BUY'."

 

Disclaimer

The stock has been picked from the brokerage report of Nuvama. Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.