Allied Blenders and Distillers Ltd.
NSE: ABDLAllied Blenders and Distillers Ltd.: A 30-second snapshot
Allied Blenders and Distillers (ABDL) is an NSE-listed FMCG company operating in the Indian spirits segment, currently trading at ₹555.35 — up 59% over 12 months, above both its 50-DMA (₹491.90) and 200-DMA (₹536.19). The business carries a debt-to-equity ratio of 68.25, a 3.01% profit margin, and a quality score of 15 out of 100, ranking last among its 6 tracked FMCG peers.
P/E
68.1
Forward P/E
35.4
ROE
+13.6%
Debt / Equity
68.25
Profit Margin
+3.0%
Div. Yield
+1.0%
5Y ROE > 15%
0/5
5Y FCF > 0
3/5
Quality
36/100
News
8 headlines · 6 positive · 1 negative
ABDL's Profits Dip Despite Strategic Growth Moves - Devdiscourse
Devdiscourse
ABDL: FY 2026 delivered record profit and margin gains; premiumization and CapEx to drive future growth - TradingView
TradingView
Allied Blenders and Distillers Limited announces Annual dividend, payable on August 05, 2026 - marketscreener.com
marketscreener.com
Allied Blenders FY26 H2: ₹98.56 Cr Related Party Transactions Revealed - Whalesbook
Whalesbook
Allied Blenders And Distillers Says Unit's Income-Tax Liability Of 161.6 Million Rupees Reduced To Zero - TradingView
TradingView
Recent context
- ·FY26 H2 disclosed ₹98.56 crore in related-party transactions, reported by Whalesbook — a figure that merits context relative to the company's total revenues and net profit given the thin 3.01% margin.
- ·A unit's income-tax liability of ₹161.6 million was reduced to zero (April 2026), which may be contributing to the difference between trailing and forward earnings estimates.
- ·An annual dividend payable August 5, 2026 was announced, and one source described FY26 as delivering record profit and margin gains driven by premiumization and CapEx — while a separate source reported a profit dip, indicating possible segment or timing differences in how results are being characterised.
Strengths
- +Revenue has grown 108.7% over 5 years, indicating substantial top-line expansion in what remains a large and relatively underpenetrated domestic spirits market.
- +The stock is trading above both its 50-DMA (₹491.90) and 200-DMA (₹536.19), with a 1-year price gain of 59.04% and a 3-month gain of 8.71% — price action reflects sustained positive momentum over multiple timeframes.
- +An annual dividend was declared payable August 2026 (yield 0.97%), providing a modest income component alongside the capital-gains story.
- +Forward PE of 35.37 is a significant compression from the trailing PE of 68.06, implying analyst expectations embed a substantial improvement in earnings per share in the near term.
Weaknesses
- −D/E of 68.25 is extreme for an FMCG business; the combination of high leverage and a 3.01% profit margin leaves limited buffer if revenue or margins come under pressure.
- −5-year earnings growth of -48% against 108.7% revenue growth indicates that scale has come at a steep cost to the bottom line, with ROE of 13.55% never exceeding 15% in any of the tracked years.
- −Quality score of 15 out of 100 — ranked 6th of 6 among FMCG peers — reflects the lowest fundamental quality in the comparison set, while ABDL trades at a trailing PE (68.06) above peers like ITC (19.04) and Hindustan Unilever (50.25).
- −FCF was positive in only 3 of the tracked years, and the consistency score stands at 48 out of 100, indicating earnings and cash flow generation has been uneven across the business cycle.
Open questions
- ?Does the 108.7% revenue growth over 5 years reflect genuine volume gains in the spirits market, or is it partly a product of pricing and premiumization that could plateau as the consumer mix matures?
- ?How sustainable is the forward PE compression to 35.37 — what earnings trajectory is embedded in that estimate, and how does it square with the 5-year record of -48% earnings growth?
- ?What is the nature and tenure of the ₹68.25 D/E leverage — is it working capital-intensive debt typical of the spirits business (excise duty financing) or long-term structural debt, and what is the interest coverage ratio?
- ?Does the ₹98.56 crore in H2 FY26 related-party transactions represent arm's-length commercial arrangements, and how have such transactions trended as a proportion of revenue over the past 3 years?
Peer comparison: FMCG
Ranks 6 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| ABDL | Allied Blenders and Distillers Ltd.You're viewing | 68.1 | +13.6% | 15 |
| Industry avg | across 5 peers | 55.7 | +39.5% | 52 |
| NESTLEIND | Nestle India Ltd. | 78.7 | +76.3% | 61 |
| HINDUNILVR | Hindustan Unilever Ltd. | 50.2 | +21.6% | 58 |
| BRITANNIA | Britannia Industries Ltd. | 51.3 | +53.3% | 50 |
| TATACONSUM | Tata Consumer Products Ltd. | 79.4 | +6.9% | 45 |
| ITC | ITC Ltd. | 19.0 | — | 44 |
Technical state
Current price
₹555.35
SMA 50
₹491.90
SMA 200
₹536.19
RSI (14)
56.2 (neutral)
From 52w high
-20.3%
1Y return
+59.0%
3M return
+8.7%
50-DMA
Above
200-DMA
Above
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- highDebt-to-equity of 68.25 is extremely elevated for an FMCG company; FMCG peers such as Hindustan Unilever and Britannia operate with negligible leverage. This level of leverage materially amplifies interest-rate and refinancing risk, and is particularly notable given a profit margin of only 3.01%.
- highEarnings growth over 5 years is -48% despite 5-year revenue growth of 108.7%, indicating severe margin erosion over the period. ROE of 13.55% has been above 15% for zero of the tracked years, and FCF was positive in only 3 of available years — pointing to a capital-intensive business that has not reliably converted revenue growth into shareholder returns.
- highQuality score of 15 out of 100 places ABDL last (6th of 6) among its FMCG peer group. Peers such as Nestle India (61), Hindustan Unilever (58), and Britannia (50) score significantly higher, meaning ABDL trades at a PE of 68.06 with the weakest fundamental quality profile in the comparison set.
- mediumTrailing PE of 68.06 is significantly above the consistency score of 48 and quality score of 15, implying the market is pricing in a sharp earnings recovery. Forward PE of 35.37 implies near-doubling of earnings — a materially high bar given the 5-year earnings growth record of -48%.
- mediumA recent headline flagged ₹98.56 crore in related-party transactions for FY26 H2, which warrants scrutiny given the thin 3.01% profit margin. Separately, one headline notes profits dipped despite strategic growth moves, creating an unclear picture of whether FY26 represented a genuine inflection or a one-period result.
Cross-section contradictions
- Revenue grew 108.7% over 5 years while earnings growth was -48% over the same period — a stark divergence suggesting scale has been pursued at significant cost to profitability, yet the stock trades at a trailing PE of 68.06.
- News sentiment is skewed positive (6 positive, 1 neutral, 1 negative across 8 articles), with one headline describing FY26 as delivering record profit and margin gains, while another headline reports profits dipped despite strategic growth moves — the two narratives cannot simultaneously be accurate and point to mixed or period-specific reporting.
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.
Fundamentals & technicals: refreshed 25 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 17 May 2026 · rotates through NIFTY 500 every ~5 days