Global brokerage firm Nomura has initiated coverage on Allied Blenders and Distillers Limited (ABDL) with a 'Buy' rating and price target of ₹850, implying an upside of 18% from the stock's closing levels on Monday. According to The Financial Express, the target price is based on 48 times September 2028 estimated earnings per share, which Nomura says is at the lower end of the sector's average valuation range. The brokerage expects the company to enter its next phase of growth supported by premiumisation, backward integration and potential benefits of the India-UK free trade agreement. Nomura anticipates these factors will drive structural margin expansion and mid-teen sales growth and mid-twenties earnings-per-share growth over FY26-29.
The maker of Officer's Choice, one of India's most consumed whiskies, Allied Blenders is evolving beyond the brand into a more youthful and full-portfolio prestige and above player. As reported by The Financial Express, the company's volumes and sales in prestige and above portfolio recorded a 20% compounded annual growth rate over FY24-FY26, lifting its contribution from 37% to 47%. The flagship ICONiQ White whisky has emerged as a brand rapidly gaining popularity among millionaires for the past three consecutive years and reached 10.7 million cases in FY26. The company also launched ABD Maestro in FY26, which has 10 brands across whiskey, gin, vodka and rum, and is focused on scaling them through by FY28. Allied Blenders has also recently forayed into premium whisky with 'The Indian Edit' and plans to enter into the deluxe vodka market soon, with a Single Malt offering expected in 2029.
Shares of Allied Blenders and Distillers Limited (ABDL), the country's leading alcohol beverages maker, surged over 19% this year and jumped 8.5% on Thursday, September 24, 2026, as the stock hit an intraday high of ₹704.40 on the National Stock Exchange. According to NDTV Profit, the stock was trading at ₹697.05 as of 1.30 pm, up ₹40.65 or 6.19% from its previous close of ₹656.40. The stock opened at ₹660.00 with traded volume reaching 45.55 lakh shares worth ₹313.48 crore by midday. The positive momentum was driven by strategic stake purchases by major institutional investors, with the stock outperforming the broader market significantly. As reported by CNBC TV18, the stock ended 0.33% higher at ₹714.50 on Friday, with the stock having gained more than 17% so far this year.
SBI Mutual Fund acquired 34 lakh shares while Abu Dhabi Investment Authority purchased over 15 lakh shares at an average price of ₹650 per share. As reported by The Hindu BusinessLine, these transactions represent substantial institutional interest in the alcohol beverages company. The combined institutional activity demonstrates confidence in the company's prospects despite recent financial challenges. The stock has a 52-week high of ₹711.7 and 52-week low of ₹382.1, indicating significant volatility in recent periods.
Allied Blenders is stepping up investments in backward integration across three key raw materials - malt, extra neutral alcohol, and polyethylene terephthalate. According to The Financial Express, this, coupled with a total capital expenditure plan of more than ₹16 billion, should improve supply security and reduce cost competitiveness. The company plans to fund its capex investments through internal accruals and external funding, with management maintaining leverage guardrails of net debt/EBITDA below 2x and net debt/equity below 0.75x. Nomura projects the company will achieve its target of around 48% gross margin, 18% EBITDA margin, and 23%-25% return on capital employed by FY28. The brokerage has projected an earnings per share growth of 26% CAGR over FY26-FY29.
Founded in Kolkata by Kishore Chhabria in 1988, ABDL has grown into one of India's biggest spirits companies and exporters, with a range of whisky brands including Officer's Choice, as well as vodka, gin, rum, brandy and water. As reported by NDTV Profit, the company's market capitalization stands at ₹200 billion ($2.1 billion). ABDL, listed on Indian exchanges since July 2024, is categorised under Breweries and Distilleries and is part of the Nifty 500 index, with the stock trading at a trailing P/E of 87.55 and having gained over 30% in the past year against the Nifty 500's decline of 2.17% over the same period. According to Nomura, the company has steadily improved execution since its initial public offering and is transitioning towards a premiumisation-led growth model. The brokerage expects an improving product mix and backward integration to drive margin expansion of more than 300 basis points, supporting an estimated 30% EPS CAGR over FY26-29.
