Forbes investment wizard AYUSH MITAL buys ASSOCIATED ALCHOLS & breweries ltd

Discussion in 'Stock Picks Of Wizards' started by Tilak Sharma, Jul 1, 2015.

  1. Tilak Sharma

    Tilak Sharma New Member

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    Forbes magazine has listed investment wizard the first in the list is Ayush Mital and Donald Francis of valuepickr.com ayush Mital has confirmed that he has invested in Associated alcohols & breweries ltd the details of which is available even in this forum and screener.in
     
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  2. narayan.pal

    narayan.pal Active Member

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    Yes....ayush mittal confirmed his investment n he is seeing good potential in it..
     
  3. Praisesingh

    Praisesingh New Member

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    Not only ayush Mital porinju velathuam has also shown interest and started covering this with the kind of the growth they have shown And the numbers are so very good on all parameters and debt reduced I think this stockwill be next Multibagger in liquor segment
     
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  4. narayan.pal

    narayan.pal Active Member

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    Lets c....the stock has already started its fast upward movement n near to its 52 wk high
     
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  5. Srouta Mukherjee

    Srouta Mukherjee Well-Known Member

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    Can you give link where wizards are bullish. I went to value picker forum but no such info is there
     
  6. Srouta Mukherjee

    Srouta Mukherjee Well-Known Member

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    Also where is news about porinju interest in stock?
     
  7. narayan.pal

    narayan.pal Active Member

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    https://forum.valuepickr.com/t/associated-alcholols-breweries-ltd/1570

    ayushmitAyush MittalVP Moderator, Top Contributor
    26d
    Hi indirachitra,

    I agree with you that there has been a good consistent improvement in the financial performance of the company and it deserves a closer look. I have been following it for sometime and do own some shares. I tried finding more about the company but there is very limited information out there.

    In 2008 the company seemed to have conducted some analyst meet, here is a summary -http://www.capitalmarketplus.com/cabnas/Cabstory.asp?SNo=237824&opt=23

    Though nothing material happened after that for some years. It was only in 2010 that the company hinted about modernization and completed the same in 2011. In 2012 the company again hinted of backward integration, ambitious plan for modernization. Since this year we have seen consistent growth and material improvement in the company.

    On the negatives - 1. the sector is such that its not easy to find great companies 2. in past there have been several auditor comments and qualifications 3. need to understand the business and operations of the company better - very limited information is available. 4. Need to understand about their arrangement with a group co - Mount Everest Breweries.

    Regards,
    Ayush
    Disc: I hold
     
  8. balaljimahindra

    balaljimahindra New Member

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    with the kind of growth this company has shown at the rate 35% CAGR the expected revenue and profit looks very interesting but now realising the potential some guys will bring the price down to buy lower can this be a muktibagger
     
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  9. Tilak Sharma

    Tilak Sharma New Member

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    Guys let me tell you I posted as you can see from above that ayush mital has confirmed he has invested and even in the forum all postive negative has been discussed clearly now it is upto the individuals discretion to decide here we only discussing the potential of the the company and possibly growth there is no recommendation.
     
  10. Praisesingh

    Praisesingh New Member

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    Whether recommended or not it because of Sebi rules these guys are careful that all if you watch the delivery volume for the last 5/6 months you will understand that accumulation was going on this stock is the best in the sector with good fundamental available at less than 10 PE with lowest debt and a good promoter very niche area now patience is the key and target can be anything above 300 only now these brokers and HNI investor realise the potential and start telling some negative and make retail investors sell and make big money
     
  11. adrian007

    adrian007 New Member

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    I think when I checked the screener they are still not given the input of this fy 15 debt and other updates so once updated it will hit in many search than it will zoom
     
  12. Meenakshi Razdan

    Meenakshi Razdan Administrator Staff Member Moderator

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    I request everyone to be careful while using the names of well-known investors like Mr. Ayush Mittal. He has issued a disclaimer that his name is being misused to suggest that he is recommending the stock. He has clarified that he has only a small tracking position in the stock. He has also stated that he sees several weaknesses/ drawbacks in the stock. You can read his disclaimer here:

    http://forum.valuepickr.com/t/associated-alcholols-breweries-ltd/1570/20

    Please do not feel tempted to buy a stock only because a well-known investor has bought it. It is essential that every investor should do his own research into the stock and develop his own conviction. If one feels unable to do research, then it is best to invest in a mutual fund or to clone a model portfolio prepared by reputed brokerages.
     
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  13. Tilak Sharma

    Tilak Sharma New Member

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    Meenakshi please see the wordings first off all I have mentioned the truth that ayush mital has invested which is absolutely correct and nowhere it is mentioned that he has recommended and ayush has issued only a clarification and not any disclaimer his clarification says that yes he has invested big investors don't reveal the exact portion they only just say that they have tracking investment and also if you read the thread fully you will understand that not only the negatives but the positives as well very much discussed they issue this clarification because sebi has issued guidelines regarding recommendations they never disclaimed the fact that they have invested nor they say that it is bad even there same Mr ayush has ponted out that growth has been very good and other members has pointed out various postive aspect of the buisness a clarification issued on technical ground doesn't completely rule out the facts of the company profile which can be verified from the screener.in maintained by the same Mr ayush even in the dalalstreet forum of screener.in he has talked about the postive of the company here iam not suggesting or recommending in this thread like others we are trying to understand coat tailing process of big investors that does not become unscrupulous Even before this post I have clear mentioned this . Thank u and regards
     
  14. Praisesingh

    Praisesingh New Member

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    Kumaresh5 months ago
    Hai Ayush earlier also I asked about this have you seen the dec numbers of associated alcholol and brewery ltd very interesting you suggested that we see for consistency in performance now how do you feel with dec qtr numbers




    • [​IMG]
      Ayush
      Kumaresh5 months ago
      Hi Kumaresh,

      I can't share my view/opinion on a stock as per the SEBI requirement. However, will like to share that we are invested in the same and its good to see the co posting good results.
      so six months before itself it was confirmed in dalalstreet blog now also it is clear that it the company has positives which were identified and then only investment is made now these guys can deny anything because they still want to buy at low price they accumulate fully and the same guys will come out with reco to buy at a much higher price
     
  15. balaljimahindra

    balaljimahindra New Member

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    first of all let us understand that any one person buying or selling will not change the fundamentals of the company let us see the basics
    fy 10 sales was 88 cr fy 15 is 300 cr 5 yr cagr growth 35% ebita fy 10 6 cr fy 15 33 cr 5 yr cagr growth 45% net block fy 10 33 cr fy 15 96 cr more than 100% growth in capex general reserve fy 10 33 cr fy 15 59 cr yoy growth 375 AND 100% on revenue and profit with this historical fact in mind let us assume even 30% growth so fy 16 390 cr rev 44 cr ebita 23 cr np and 25 eps look at the sector pe
    as regards the spike in employee cost they have given clarification i think which is mentioned in the valuepickr thread itself.
    now the debt in fy 14 was 86 cr reduced to 38 cr in fy 15 the working capital is 78 cr trade recievable is 8 cr and inventory 30 cr cash in hand 12 cr so now the ROE is 18% and ROCE 16%
    The capex completed qoq growth is also stable the operating cash flow total of last five years 47 cr minus the negaive is 17 cr so a net of 20 cr this fy 15 operating cash flow exceeds around 20 cr
    the company has not given dividend but neither they have issued any preference capital for dividend stiping nor they have diluted the equity by way of warrants. the company has investment in mount everest breweries and narmada distellery the value of which is not taken into consideration for want of clarity
    they have compiled with all sebi requirements for last 6 years promoter holding at 58% never reduced only increased no investor compliants no negative news whatsoever about the promoter.
    operating in niche area of triple distelled grain spirit cash cow country liquor and bottlin international brands
    market cap as of today 110 cr available at around 5 pe of forward earning fy 16 at a market cap to sales of less than 0.4 and book value of less than 1.5 and evebita of 5.
    now whether ayush mital or no mital we can do our own calculation and decide why bother whether somebody invested or not i do see a potential for growth here avilable at fair value as far some negative i think it for individulas to decide
     
    Last edited: Jul 14, 2015
  16. Praisesingh

    Praisesingh New Member

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    Now even today there was huge volume of 20000 shares with 99% delivery now with increasing volumes with high delivery we can expect fireworks
     
  17. amit arora

    amit arora New Member

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    This stock is getting big time interest now hit all time high and still going strong I thank u very much Mr Tilak it is becoming very clear now that the so called HNI investors never want the real investors to make money they create doubt in our mind accumulate and then will disclose only after this stock reaches 250 as if they found out just at that time Now it is clearly going to rated like gm brewries
     
  18. adrian007

    adrian007 New Member

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    Sir your stock is rocking it touched all time high of 160 hitting uc and still firing on all cylinders expect to be rated better than gm breweries target of 250 seems very resonable now
     
  19. adrian007

    adrian007 New Member

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    Now this the profile of the company also refer the annual report of the company which clearly shows that Ayush mittal has bought 54000 shares in fly 15 put of the free float of 15 lac now he says that it is work in progress in valuepickr


    Associated Alcohols and Breweries (AABL) is one of the largest distilleries in India and the flagship company of the Associated Kedia Group – a Rs. 100 crore liquor conglomerate with interests in liquor manufacturing and bottling. The company was set up by its founder Chairman -- the Late Bhagwati Prasad Kedia. Incorporated in 1989, AABL took over the existing distillery of the promoter group in 1990 and expanded activities into manufacturing of highest grade liquors. Extra Neutral Alcohol is a vital ingredient in the making of an alcoholic beverage. AABL supplies this vital ingredient to many leading manufacturers under a special agreement. In the IMFL segment, the company has an understanding with reputed companies like Diageo (owner of brands like Smirnoff vodka and Johnnie Walker Scotch Whisky), Mason and Summers and Diageo-Radico. These companies buy a total of 55-60% of the total IMFL produced by AABL. The balance production is used for direct supplies to the branded suppliers across the country, apart from manufacturing its own branded products.

    AABL's distillery is located in Khodigram, in the Khargone district of Madhya Pradesh. It has a present distillation capacity of 42 MLPA. The distillery is presently undergoing a series of transformations that will result in increasing its expanded capacity to 65 MLPA. AABL supplies Extra Neutral Alcohol (ENA), a vital ingredient, to many leading manufacturers under a special agreement. In the IMFL segment, the company has an understanding with reputed companies like Diageo (owner of brands like Smirnoff vodka and Johnnie Walker Scotch Whisky), Mason & Summers and Diageo-Radico. AABL has for long been recognized as one of the finest suppliers of high quality ENA in the Indian market. The company's relationships with leading international and national brands bear ample proof.

    AABL has chalked out a huge greenfield expansion plan to capture domestic and international demand and serve all the segments of alcohol ranging from country liquors to IMFL. This plan includes setting up a multi-pressure ENA plant, a collector plant, a Reverse Osmosis Water Treatment Plant and a 2 MW power plant. AABL is setting up a multi pressure ENA plant. This plant will completely replace the older plant and increase its production capacity from the present 42 MLPA to 65 MLPA. The multi-pressure ENA plant cuts down the stages in the manufacture and thus improves process efficiency.

    Business areas of the company:

    AABL is engaged in the business of bottling vodka and scotch whisky for large reputed international brands. AABL is also one of the only liquor companies bottling single malt scotch whisky (Glen Drummond) for the leading liquor group Mason & Summers. AABL has a ten line bottling operations in two different sections. It packs about 45,000 cases per month and has a production capacity of around 42 million litres per annum (MLPA).

    Brands:

    • London Bridge gin
    • James McGill whisky
    • Red & White whisky
    • Bombay Special whisky
    • Jamaican Magic rum


    - See more at: http://www.moneyworks4me.com/indian...s-brew/company-info#about-company-anchor-link
     
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