According to Systematix research report, Allied Blenders and Distillers Ltd. remains a compelling growth story with a 'Buy' rating and a target price of ₹722. The brokerage maintains its positive stance on the stock, citing premiumisation-led growth, improving margins and favourable policy support as key catalysts that could drive re-rating in the medium term. The company is well-positioned to deliver sustained growth and profitability through its robust manufacturing and distribution network, along with increasing backward integration and premiumisation of its product portfolio.
As reported by Systematix, the company is well-positioned to deliver sustained growth and profitability through its robust manufacturing and distribution network, along with increasing backward integration and premiumisation of its product portfolio. A key near-term tailwind highlighted is the reduction in customs duties on imported Scotch, which is likely to benefit Allied Blenders by lowering input costs and supporting margin expansion. This development is expected to strengthen the company's premium offerings and enhance profitability over time. Growth in the super-premium and luxury segments will be driven by the company's ABD Maestro brand, although the brokerage expects profitability from this venture to be gradual. Due to higher brand investments, the segment is likely to turn Ebitda positive only by FY28E, indicating a phased monetisation strategy.
According to the Systematix report, the brokerage has pencilled in a revenue CAGR of 13.2% over FY26–FY28, driven by a volume CAGR of 9.8%. Within the portfolio, the prestige and above (P&A) segment is expected to grow at a strong 18.6% CAGR, significantly outpacing the mass premium segment, which is projected to grow at a modest 1.2% CAGR during the same period. Ebitda is expected to grow at a CAGR of 23.7%, supported by operating leverage and premiumisation, with margins improving from 13.8% in FY26 to 16.5% by FY28E. The brokerage has built in an Ebitda margin expansion of around 269 basis points, reflecting strong operational efficiency and premiumisation benefits.
As reported by Systematix, growth in the super-premium and luxury segments will be driven by the company's ABD Maestro brand, although the brokerage expects profitability from this venture to be gradual. Due to higher brand investments, the segment is likely to turn Ebitda positive only by FY28E, indicating a phased monetisation strategy. Earnings growth is expected to remain robust, with PAT projected to grow at a CAGR of 38.8% over FY26–FY28, with the core PAT CAGR standing at 26.5% after adjusting for one-time tax impacts in FY26. This strong underlying earnings momentum reflects the company's structural growth drivers and operational improvements.
