Keep an eye on this small-cap beverage stock as it witnessed a strong price volume breakout!

In the recent quarterly result, the company reported a massive jump of 129 per cent YoY in revenue to Rs 184 crore along with a 32 per cent rise in net profit.

Despite weakness in the Indian indices on Wednesday, the stock of Associated Alcohol & Breweries Ltd (ASALCBR) soared over 5 per cent and has registered a strong price volume breakout on the technical chart.  It is one of the trending smallcap stocks on Wednesday.

In the last two trading sessions, the volumes were unusually large and above average, which indicates strong buying sentiment among the market participants. Moreover, this distillery stock jumped nearly 10 per cent during this period.   

In the recent quarterly result, the company reported a massive jump of 129 per cent YoY in revenue to Rs 184 crore along with a 32 per cent rise in net profit. The upcoming festive season is likely to have a positive impact on the demand for alcohol products. Interestingly, both FIIs and DIIs held their stake in this Small-Cap stock. Meanwhile, the stock is quite undervalued, considering its PE of 14.46 as against the sector PE of 69.83. As per the price structure, a rise above Rs 625 level can take the stock towards higher levels.   

Associated Alcohols & Breweries Limited is a distillery company, engaged in the manufacturing of a variety of alcohols and flavoured spirits.  The stock of this Rs 950-crore market capitalisation company is making headlines recently for strong buying by investors.   

Currently, the shares of ASALCBR are trading at Rs 515 level on NSE. Keep an eye on this stock to track its further development!