Nomura starts Allied Blenders & Distillers at Buy as premium mix rises
Nomura initiated coverage with a Rs 850 target, about 19% above the cited Rs 715 price. The broker puts Prestige & Above at 47% of FY26 sales, versus 37% in FY24, and flags more than Rs 1,600 crore in planned capex.
The development
Nomura initiated coverage on Allied Blenders & Distillers with a 'Buy' rating and a Rs 850 target price. Its Prestige & Above portfolio contributed 47% of sales in FY26, up from 37% in FY24, with more than Rs 1,600 crore capex planned.
The numbers
- Rs 850 target price
- Rs 715 current price
- about 19% upside
- 47% of sales in FY26
- 37% in FY24
Why it matters to operators and investors
Review premium assortment and trade support as Nomura projects Allied Blenders & Distillers’ Prestige & Above sales mix rising to 47% in FY26 from 37% in FY24.
What to watch next
- Reported Prestige & Above sales mix versus Nomura's 47% FY26 forecast, alongside absolute premium sales and volumes.
- Retail sell-through, repeat orders and distributor inventory: evidence of consumer pull versus channel loading.
- Gross-margin gains relative to advertising, promotion and distribution costs.
- Capex commitments and commissioning milestones versus operating cash flow, working capital and net debt.
- State-level excise, pricing and route-to-market changes that could prevent premium pricing from translating into higher margins.