Allied Blenders and Distillers Ltd.
ISIN: INE552Z01027 • Market Cap: ₹16,736 Cr
The 5-Pillar Quality Audit for Allied Blenders and Distillers Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (7.2%), Return on Capital Employed (24.2%), and equity compounding (13.7%).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 0.69 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (31.7%) and 3Y PAT CAGR (385.8%).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 75.74 vs PEG of 3.08 and Dividend Yield of 0.9%.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 80.9%, backed by 8.3% institutional ownership.
Key Fundamental Strengths
Superior Capital Efficiency (ROCE: 24.2%)
Allied Blenders and Distillers Ltd. generates exceptional return on capital employed of 24.2%, reflecting pricing power and competitive moat.
Strong Topline Expansion (3Y Sales CAGR: 31.7%)
Revenue has expanded at 31.7% CAGR over 3 years, signaling industry market-share gains.
High-Velocity Profit Compounding (3Y PAT CAGR: 385.8%)
Net earnings have compounded at 385.8% annualized, demonstrating operating leverage.
Areas to Watch & Potential Risks
Priced for Perfection (P/E: 75.74)
A steep valuation multiple of 75.74 leaves little margin for safety against quarterly earnings misses.
Sectoral & Macro Headwinds (Fast Moving Consumer Goods)
Subject to broader cyclical demand, raw material price shifts, and regulatory frameworks governing the Fast Moving Consumer Goods space.
Quantitative Strategy Eligibility
Checking ABDL against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Passes Saurabh Mukherjea's Coffee Can rule: 10%+ sustained revenue growth and 15%+ ROCE/ROE.
Quality Factor Screener (High RoIC + Low Debt)
Scorecard of 72/100 or leverage profile sits below strict quality index hurdles.
GARP / Value-Growth Blend
Valuation multiple or return metrics require further cyclical pullback.
Fast Moving Consumer Goods Sector Peer Comparison
Compare ABDL directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| Allied Blenders and Distillers Ltd. (ABDL)Current | 72/100 | ₹16,736 Cr | 75.74 | 24.2% | 0.69 | — |
| Hindustan Unilever Ltd. (HINDUNILVR) | 75/100 | ₹4.74 Lakh Cr | 31.67 | 22.6% | 0.00 | View |
| ITC Ltd. (ITC) | 81/100 | ₹3.34 Lakh Cr | 16.86 | 36.4% | 0.03 | View |
| Nestle India Ltd. (NESTLEIND) | 68/100 | ₹2.83 Lakh Cr | 74.37 | 57.2% | 0.00 | View |
| Varun Beverages Ltd. (VBL) | 75/100 | ₹1.46 Lakh Cr | 43.23 | 19.6% | 0.10 | View |
| Britannia Industries Ltd. (BRITANNIA) | 74/100 | ₹1.30 Lakh Cr | 50.04 | 62.3% | 0.27 | View |
Frequently Asked Questions: Allied Blenders and Distillers Ltd.
Q:What is the 5-Pillar Fundamental Score for Allied Blenders and Distillers Ltd. (ABDL)?
Allied Blenders and Distillers Ltd. has a RupeeTools Fundamental Score of 72/100, placing it in the 'Solid & Healthy' category. Its pillar scores are: Profitability (70/100), Financial Health (69/100), Growth (99/100), Valuation (43/100), and Ownership Quality (72/100).
Q:Is ABDL fundamentally strong for long-term investment?
Yes, ABDL exhibits solid fundamental strength with a 72/100 score, driven by a return on equity of 13.7% and a debt-to-equity ratio of 0.69.
Q:Does ABDL pass the Coffee Can Investing filter?
Yes! ABDL satisfies both core pillars of Coffee Can Investing: achieving consistently high capital returns (ROCE/ROE >= 15%) alongside double-digit multi-year revenue growth.
Q:How does ABDL compare against other Fast Moving Consumer Goods peers?
Within India's Fast Moving Consumer Goods sector, ABDL trades at a P/E of 75.74 and generates an ROCE of 24.2%. Compare its 5-Pillar score of 72/100 against top sector peers like Hindustan Unilever Ltd. (75/100), ITC Ltd. (81/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.