Allied Blenders & Distillers (ABDL), incorporated in 1988, is third largest IMFL company in terms of sales volumes between FY14-22. It has 17 IMFL brands in the portfolio; 4 out of it are Millionaire brands. Premiumisation is core of the long-term growth strategy. Prestige & Above (P&A) brands contribution increased to 37.2% in FY24 vs. 25% in FY18.
• We have increased our earnings estimates for FY25E/FY26E/FY27E by ~3% each to factor in the better-than-expected sales volume of ICONiQ brand. Management’s outlook of low teens revenue growth and consistent margin improvement provides further scope of earnings upgrade.
• Valuations look attractive post recent correction. We recommend Buy with a PT of Rs 495.