India Equity Analyst - Fundamental & Thematic, Beat the Street

Sudarshan Bhandari

India Equity Analyst - Fundamental & Thematic

Beat the Street

Beat The Street was founded by Nimish Maheshwari and Sudarshan Bhandari, both of whom are Chartered Accountants by Profession, known for their expert analysis in the fields of Business, Sectoral analysis, and Corporate governance.

With a strong social media presence of 45,000+ Subscribers across various platforms, they are considered trusted voices in the industry. Their insights and analysis have been featured in some of India’s most prominent publications, including the Economic Times, Dalal Street Investment Journal, The Morning Context, and The Ken.

Their analysis on Bankrupt & Insolvent companies has been instrumental in saving investors from significant losses. They have a keen eye for identifying red flags and has identified exclusive redflags earlier in Vedanta, Nykaa, Dhani Services, Adani and many more.

Read Business Not Stock Prices

Equity Bottom-Up

<ul>
<li>Globus Spirits continues its strategic pivot towards high-margin consumer business, with P&amp;A revenue up 186% in FY25 and Regular &amp; Others up 17%.</li>
<li>The manufacturing segment's margins are stabilising due to favourable government ethanol policies and raw material availability, enhancing overall profitability.</li>
<li>This shift, coupled with significant investments in the key Uttar Pradesh market and near completion of major capex, positions the company for continued profitable growth, reinforcing a positive view.</li>
</ul>


Globus Spirits continues its strategic pivot towards high-margin consumer business, with P&amp;A revenue up 186% in FY25 and Regular &amp; Others up 17%.
The manufacturing segment's margins are stabilising due to favourable government ethanol policies and raw material availability, enhancing overall profitability.
This shift, coupled with significant investments in the key Uttar Pradesh market and near completion of major capex, positions the company for continued profitable growth, reinforcing a positive view.


Globus Spirits: Consumer Business Growth &  Manufacturing Stability

<ul>
<li>
<a href="https://www.smartkarma.com/entities/globus-spirits-ltd" target="_blank" data-smartkarma-citation="entities:15728:1" rel="noopener">Globus Spirits (GBSL IN)</a>’ Q3 FY25 performance saw a 12.5% YoY revenue decline and significant cost pressures, while its consumer segment, especially luxury posted remarkable double-digit growth.</li>
<li>After reduction of FCI price, Company anticipate achieving margins of Rs. 5-7 per liter from ethanol, aiming for a long-term average of Rs. 7 per liter.</li>
<li>From Q4 onwards, manufacturing segment will also perform well along with growth in the consumer segment as well.</li>
</ul>



Globus Spirits (GBSL IN)’ Q3 FY25 performance saw a 12.5% YoY revenue decline and significant cost pressures, while its consumer segment, especially luxury posted remarkable double-digit growth.
After reduction of FCI price, Company anticipate achieving margins of Rs. 5-7 per liter from ethanol, aiming for a long-term average of Rs. 7 per liter.
From Q4 onwards, manufacturing segment will also perform well along with growth in the consumer segment as well.


Globus Spirits Limited Q3 FY25: Navigating Cost Pressures & Charting Future Growth

<ul>
<li>In Q4FY24, <a href="https://www.smartkarma.com/entities/globus-spirits-ltd" target="_blank" data-smartkarma-citation="entities:15728:1" rel="noopener">Globus Spirits (GBSL IN)</a> changed its raw material from rice to maize to improve the margin and stability in margins.</li>
<li>
<a href="https://www.smartkarma.com/entities/globus-spirits-ltd" target="_blank" data-smartkarma-citation="entities:15728:1" rel="noopener">Globus Spirits (GBSL IN)</a> increased its capacity in Q4 recently 120KLPD, 60 each in Jharkhand and West Bengal.</li>
<li>Recently, the government also removed the ban on using FCI grain and sugarcane for Ethanol production.</li>
</ul>


In Q4FY24, Globus Spirits (GBSL IN) changed its raw material from rice to maize to improve the margin and stability in margins.

Globus Spirits (GBSL IN) increased its capacity in Q4 recently 120KLPD, 60 each in Jharkhand and West Bengal.
Recently, the government also removed the ban on using FCI grain and sugarcane for Ethanol production.


The Beat Ideas: Globus Spirits- Maize, Capex, B2C Play

<ul>
<li>
<a href="https://www.smartkarma.com/entities/dhampur-bio-organics-limited" target="_blank" data-smartkarma-citation="entities:43978:1" rel="noopener">Dhampur Bio Organics (DBOL IN)</a>: Integrated sugar manufacturer listed in 2022 post demerger from <a href="https://www.smartkarma.com/entities/dhampur-sugar-mills-ltd" target="_blank" data-smartkarma-citation="entities:10655:1" rel="noopener">Dhampur Sugar Mills (DSM IN)</a> </li>
<li>With change in Ethanol policy from Sep-24, Company will be significantly benefitted with its grain-based ethanol plant and higher sugar production with good monsoon. </li>
<li>Company is reducing its debt significantly to deleverage its balance sheet.</li>
</ul>



Dhampur Bio Organics (DBOL IN): Integrated sugar manufacturer listed in 2022 post demerger from Dhampur Sugar Mills (DSM IN) 
With change in Ethanol policy from Sep-24, Company will be significantly benefitted with its grain-based ethanol plant and higher sugar production with good monsoon. 
Company is reducing its debt significantly to deleverage its balance sheet.


The Beat Ideas: Dhampur Bio Organics Ltd.- Ethanol, Value Added Products & Deleveraging

Equity Analyst - Asia Consumer Sector, Investory

Devi Subhakesan

Equity Analyst - Asia Consumer Sector

ASIA CONSUMER: INSIGHTS AND INVESTMENT IDEAS

Investory

Investory is a Singapore-based boutique independent equity research firm founded in January 2017 with a primary focus on consumption themes across Asia-Pacific.

We aim to generate investible ideas based on consumption trends and outlook. We screen our ideas on several parameters - product potential, long-term growth and management commitment being the most critical.  We follow a fundamental analysis approach in our stock selection process and are not restricted by market cap.

We aspire to grow into a leading source of unbiased research, free of conflict of interest, for investors yearning for independent and disciplined analysis. 

We also undertake bespoke research mandates to support our Institutional clients’ investment needs.

Our team comprises of professionals with extensive experience in the Asian equity markets, in areas ranging from research, servicing institutional clients and investment management.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/allied-blenders-distillers" target="_blank" data-smartkarma-citation="entities:36090:1" rel="noopener">Allied Blenders &amp; Distillers</a>' recent IPO spotlighted India's alcoholic beverage sector, which bucks global trends with strong volume and value growth.</li>
<li>India is the third largest alcoholic beverage market globally, and the second largest for spirits. It is projected to grow at a CAGR of more than 10% over the near-term.</li>
<li>Incumbent players in this highly regulated sector can benefit from strong market moats and evolving growth opportunities if they can effectively navigate the highly regulated business  environment.</li>
</ul>



Allied Blenders &amp; Distillers' recent IPO spotlighted India's alcoholic beverage sector, which bucks global trends with strong volume and value growth.
India is the third largest alcoholic beverage market globally, and the second largest for spirits. It is projected to grow at a CAGR of more than 10% over the near-term.
Incumbent players in this highly regulated sector can benefit from strong market moats and evolving growth opportunities if they can effectively navigate the highly regulated business  environment.


India Alcoholic Beverages: Growing in Pints And Quarts. IPO Adds a Valuation Kick

India

Globus Spirits Limited manufactures, markets, and sells industrial alcohol comprising rectified spirit and extra-neutral alcohol, country liquor, and Indian made foreign liquor.

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Globus Spirits (GBSL IN)

Globus Spirits: Consumer Business Growth & Manufacturing Stability

Globus Spirits sees strong revenue growth in consumer business, stabilizing margins in manufacturing segment, positioning for continued profitable...

Sudarshan Bhandari

Globus Spirits Limited Q3 FY25: Navigating Cost Pressures & Charting Future Growth

Globus Spirits Q3 FY25 revenue declined 12.5%, but luxury consumer segment showed strong growth. Manufacturing and consumer segments expected to...

Sudarshan Bhandari

The Beat Ideas: Globus Spirits- Maize, Capex, B2C Play

The price of rice supplied to ethanol distilleries through the Food Corporation of India (FCI) was significantly reduced from Rs 28 per kg to Rs...

Sudarshan Bhandari

The Beat Ideas: Dhampur Bio Organics Ltd.- Ethanol, Value Added Products & Deleveraging

Dhampur Bio Organics, a sugar manufacturer, set to benefit from new ethanol policy and debt reduction and huge capex in FY24.

Sudarshan Bhandari

India Alcoholic Beverages: Growing in Pints And Quarts. IPO Adds a Valuation Kick

India's alcoholic beverage sector has delivered strong volume and value growth as well as attractive shareholder returns. Know the fundamentals and...

Devi Subhakesan

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Globus Spirits: Consumer Business Growth & Manufacturing Stability

​Globus Spirits sees strong revenue growth in consumer business, stabilizing margins in manufacturing segment, positioning for continued profitable...

Sudarshan Bhandari

Globus Spirits Limited Q3 FY25: Navigating Cost Pressures & Charting Future Growth

​Globus Spirits Q3 FY25 revenue declined 12.5%, but luxury consumer segment showed strong growth. Manufacturing and consumer segments expected to...

Sudarshan Bhandari

The Beat Ideas: Globus Spirits- Maize, Capex, B2C Play

The price of rice supplied to ethanol distilleries through the Food Corporation of India (FCI) was significantly reduced from Rs 28 per kg to Rs...

Sudarshan Bhandari

The Beat Ideas: Dhampur Bio Organics Ltd.- Ethanol, Value Added Products & Deleveraging

​Dhampur Bio Organics, a sugar manufacturer, set to benefit from new ethanol policy and debt reduction and huge capex in FY24.

Sudarshan Bhandari

India Alcoholic Beverages: Growing in Pints And Quarts. IPO Adds a Valuation Kick

India's alcoholic beverage sector has delivered strong volume and value growth as well as attractive shareholder returns. Know the fundamentals and...

Devi Subhakesan

Globus Spirits sees strong revenue growth in consumer business, stabilizing margins in manufacturing segment, positioning for continued profitable...

Globus Spirits Q3 FY25 revenue declined 12.5%, but luxury consumer segment showed strong growth. Manufacturing and consumer segments expected to...

Dhampur Bio Organics, a sugar manufacturer, set to benefit from new ethanol policy and debt reduction and huge capex in FY24.