15-05-2025
Up 1800% in 5 years! This liquor stock gains 14% after Q4 net profit jumps 146%. Do you own?
Stock Market Today: Shares of Tilaknagar Industries, one of India's leading alcoholic beverages (alcobev) companies, surged 14% to ₹ 355 apiece in early morning trade on Thursday, May 15, following the company's stellar performance in the March-ending quarter (Q4FY25), driven by an uptick in volumes.
The company, on Wednesday post-market hours, reported its highest-ever quarterly revenue of ₹ 406 crore, a 13.1% YoY jump. However, revenue growth lagged behind volume growth due to price reductions implemented in Andhra Pradesh in Q3 FY25. Consequently, NSR dropped to ₹ 1,182 per case from ₹ 1,293 in Q4FY24.
The company sold 34.2 lakh cases in Q4FY25, a 20.1% YoY increase from 28.5 lakh cases sold in the same period last year. Volume growth was mainly driven by strong growth in Andhra Pradesh, Karnataka, and Tamil Nadu. EBITDA grew by 62.6% YoY to ₹ 78 crore.
Profit during the reporting quarter jumped to ₹ 77 crore, a 145.8% increase compared to a profit of ₹ 31 crore in the March 2024 quarter.
The company stands as a leader in the Indian-made foreign liquor (IMFL) brandy segment, which contributes 93% of its total volumes. During FY25, the company brandy volumes stood at 10.83 lakh cases.
Its flagship brandy, Mansion House Brandy, holds the distinction of being the largest-selling brand in India and the second largest globally. During the quarter, the company has expanded into the luxury segment with Monarch Legacy Edition brandy.
Additionally, it has a strategic investment in Spaceman Spirits Lab Pvt. Ltd., the makers of Samsara Gin, Sitara Rum, and Amara Vodka, as well as a strategic investment in Round The Cocktails Pvt. Ltd., the makers of Bartisans—Premium 'Ready to Pour' Cocktail Mixers, as per the company's Q4 earnings' report.
Looking ahead, the company is well-positioned to benefit from industry trends, as 15–20 million people are expected to enter the legal drinking age every year, driving consumption trends in India.
Cocktail culture is becoming very prevalent, with significant innovations taking place in spirits as well as allied products. Premiumization is driving industry growth across all categories due to rising affluence and an aspirational consumer base.
After witnessing profit booking during January and February, the stock rebounded in March and extended its gains into April, finishing the two months with gains of 7% and 21%, respectively. The rally further extended into the current month as well, with the stock gaining another 16% so far.
Over the last 3 years, the stock has gained 550%, and in the last 5 years, it has delivered a return of 1800%.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
