1:4 Bonus Share: Distillery Company Proposal to Invest Surplus Funds & Explore Strategic Acquisition Opportunities Within Sugar Industry

The shares of the company have a PE of 9x whereas the industry PE is 33.3x with an ROE of 27 per cent and an ROCE of 25 per cent.

The Board of Directors of Aurangabad Distillery Limited approved a proposal to invest surplus funds and explore strategic acquisition opportunities within the sugar industry, with the aim of efficient procurement of raw materials for the Company’s operations. While no definitive agreements have been entered into and no specific targets have been identified at this stage, the Company commits to providing timely disclosures on any material developments or binding agreements, as mandated by the SEBI LODR.

Aurangabad Distillery Ltd, established in 2000, is a distillery company located in Walchandnagar, Maharashtra. The company specializes in producing various alcohol-based products, including rectified spirit, neutral alcohol, specially denatured spirit, potash, bio potash and de potash vinasse. These products are used in a wide range of industries, including liquor production, medicine, cosmetics, agriculture and chemicals. The company's unit has a manufacturing capacity of 180 lakh litres and operates using PLC-based distillation technology.

The stock’s 52-week high is Rs 376 per share and its 52-week low is Rs 142 per share. The company has a market cap of over 150 crore and has delivered good profit growth of 26.4 per cent CAGR over the last 5 years. The shares of the company ex-trade bonus shares in the ratio of 1:4 on Monday, October 14, 2024.  

The shares of the company have a PE of 9x whereas the industry PE is 33.3x with an ROE of 27 per cent and an ROCE of 25 per cent. From Rs 54.80 to Rs 148 per share, the stock gave 169 per cent returns in 3 years. Investors should keep an eye on this micro-cap stock.

Disclaimer: The article is for informational purposes only and not investment advice.