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Nomura Initiates 'Buy' on Allied Blenders, Targets ₹850 Amid Growth Phase
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CNBC TV18•28-09-2026, 08:49
Nomura Initiates 'Buy' on Allied Blenders, Targets ₹850 Amid Growth Phase
- •Nomura initiated coverage on Allied Blenders and Distillers (ABD) with a 'Buy' rating and a price target of ₹850, implying a 19% upside from its Friday closing price.
- •The brokerage expects ABD to enter a new growth phase driven by premiumisation, backward integration, and potential benefits from the India-UK free trade agreement.
- •Nomura anticipates new product launches to fuel mid-teen sales growth and mid-twenties earnings-per-share growth from FY26-29.
- •The valuation of Allied Blenders at 48 times September 2028 estimated EPS is considered to be at the lower end of the sector's average.
- •An improving product mix and backward integration are projected to drive margin expansion of over 300 basis points, supporting an estimated 30% EPS CAGR over FY26-29.
Key Questions Answered
Nomura initiated coverage on Allied Blenders and Distillers (ABD) with a 'Buy' rating and a price target of ₹850, representing an upside of 19% from its previous closing price of ₹714.50.
Nomura expects Allied Blenders to benefit from premiumisation, backward integration, new product launches, and potential advantages from the India-UK free trade agreement to drive structural margin expansion.
Earlier in June, Jefferies initiated coverage on Allied Blenders and Distillers with a target price of ₹780, anticipating mid-teen volume growth in the premium portfolio.
