Weekly Tactical Stock Pick – Associated Alcohols and Breweries

Trading Calls - Equity F&O

Current weakness in stock an opportunity to go long

Weekly Tactical Stock Pick - Associated Alcohols and Breweries

PRO Only Highlights
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Quarterly performance largely backed by improved realisations
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Medium-term triggers China plus and protectionist measures for tyre industry
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Valuations not inexpensive; but improved medium-term outlook

For this week’s tactical pick, we are suggesting liquor contract manufacturer Associated Alcohols & Breweries (AABL). Its product range comprises extra neutral alcohol (ENA), Indian made Indian liquor (IMIL), Indian made foreign liquor (IMFL), rectified spirit, and packaging & bottling services. The company is one of the key contract manufacturers for United Spirits and manufactures its major brands such as the Bagpiper, Director’s Special, McDowell’s No. 1 and the White Mischief. In recent years, the company has been looking to…