1:4 Bonus Shares & Rs 7/share dividend declared: Keep an eye on this low PE high ROE alcohol stock; PAT zooms over 140 per cent!
The stock gave 42 per cent returns from its 52-week low is Rs 548.65 per share.
G M Breweries Ltd informed that the Board of Directors has proposed a dual reward for shareholders, subject to member approval. First, a dividend of 70 per cent or Rs 7 per share will be distributed for each existing Rs 10 face value share. Additionally, the board recommends a bonus share issuance in a 1:4 ratio, meaning for every 4 existing Rs. 10 shares held on the record date, shareholders will receive one new fully paid Rs 10 bonus share. This bonus share issuance also requires member approval.
Established in 1981, G M Breweries Ltd is a major manufacturer and marketer of Alcoholic Beverages in Maharashtra, India. They specialize in Country Liquor (CL) and Indian-made Foreign Liquor (IMFL). Notably, G M Breweries Ltd holds a monopoly on country liquor in Mumbai, Thane & Palghar districts and is the largest producer of country liquor in the entire state with a significant market share. Their dominance is further emphasized by their contribution of 25-30% of the total Excise duty for country liquor in Maharashtra. Some of their popular brands include G.M.Santra, G.M.Doctor, and G.M.Limbu Punch.
Also Read: Artificial Intelligence (AI) revolutionizing healthcare: A look at the present and future!
According to its Quarterly Results, the net sales increased by 3.3 per cent to Rs 623.24 crore and net profit increased by 146.8 per cent to Rs 86.64 crore in Q4FY24 compared to Q4FY23. In its annual results, the net sales increased by 3.8 per cent to Rs 2,415.30 crore and net profit increased by 51.7 per cent to Rs 151.52 crore in FY24 compared to FY23.
The company has a market cap of Rs 1,300 crore. The shares of the company have a PE of 9.11x whereas the industry PE is 72.46x with an ROE of 20.2 per cent and an ROCE of 24.1 per cent. The stock gave 42 per cent returns from its 52-week low is Rs 548.65 per share.
Disclaimer: The article is for informational purposes only and not investment advice.
DSIJ’s 'Tiny Treasure' service recommends researched Small-Cap stocks with Inherent Growth Potential. This service is available as part of the "Festive Savings" combo offer discounted at 51%. Do download the service details here.