NSEI:GMBREW

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

G.M. Breweries Limited engages in manufacturing and marketing of alcoholic liquor in India. More Details

Rewards

PE ratio (14.5x) is below the Indian market (19.5x)

Pays a reliable dividend of 0.72%

Risk Analysis

No risks detected for GMBREW from our risk checks.


Snowflake Analysis

Flawless balance sheet average dividend payer.

Share Price & News

How has G.M. Breweries's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: GMBREW is less volatile than 75% of Indian stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: GMBREW's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

-6.8%

GMBREW

-1.3%

IN Beverage

-0.3%

IN Market


1 Year Return

4.2%

GMBREW

10.0%

IN Beverage

15.9%

IN Market

Return vs Industry: GMBREW underperformed the Indian Beverage industry which returned 10.1% over the past year.

Return vs Market: GMBREW underperformed the Indian Market which returned 15.9% over the past year.


Shareholder returns

GMBREWIndustryMarket
7 Day-6.8%-1.3%-0.3%
30 Day-4.4%5.4%4.9%
90 Day10.7%27.7%24.5%
1 Year5.0%4.2%10.2%10.0%18.0%15.9%
3 Year-46.0%-46.9%10.4%9.9%9.7%4.4%
5 Year-21.3%-23.4%38.3%37.7%82.1%68.4%

Long-Term Price Volatility Vs. Market

How volatile is G.M. Breweries's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is G.M. Breweries undervalued compared to its fair value and its price relative to the market?

14.51x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: GMBREW (₹416.85) is trading above our estimate of fair value (₹293.85)

Significantly Below Fair Value: GMBREW is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: GMBREW is good value based on its PE Ratio (14.5x) compared to the IN Beverage industry average (26.8x).

PE vs Market: GMBREW is good value based on its PE Ratio (14.5x) compared to the Indian market (19.5x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate GMBREW's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: GMBREW's PB Ratio (1.7x) is in line with the IN Beverage industry average.


Next Steps

Future Growth

How is G.M. Breweries forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

18.6%

Forecasted Food, Beverage & Tobacco industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as G.M. Breweries has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has G.M. Breweries performed over the past 5 years?

5.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GMBREW has high quality earnings.

Growing Profit Margin: GMBREW's current net profit margins (11.5%) are higher than last year (7.4%).


Past Earnings Growth Analysis

Earnings Trend: GMBREW's earnings have grown by 5.2% per year over the past 5 years.

Accelerating Growth: GMBREW's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: GMBREW had negative earnings growth (-29.1%) over the past year, making it difficult to compare to the Beverage industry average (-32.9%).


Return on Equity

High ROE: GMBREW's Return on Equity (12%) is considered low.


Next Steps

Financial Health

How is G.M. Breweries's financial position?


Financial Position Analysis

Short Term Liabilities: GMBREW's short term assets (₹455.4M) exceed its short term liabilities (₹440.0M).

Long Term Liabilities: GMBREW's short term assets (₹455.4M) exceed its long term liabilities (₹41.5M).


Debt to Equity History and Analysis

Debt Level: GMBREW is debt free.

Reducing Debt: GMBREW has no debt compared to 5 years ago when its debt to equity ratio was 13.3%.

Debt Coverage: GMBREW has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: GMBREW has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is G.M. Breweries's current dividend yield, its reliability and sustainability?

0.72%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: GMBREW's dividend (0.72%) is higher than the bottom 25% of dividend payers in the Indian market (0.44%).

High Dividend: GMBREW's dividend (0.72%) is low compared to the top 25% of dividend payers in the Indian market (1.81%).


Stability and Growth of Payments

Stable Dividend: GMBREW's dividends per share have been stable in the past 10 years.

Growing Dividend: GMBREW's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (10.4%), GMBREW's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

8.9yrs

Average board tenure


CEO

Jimmy Almeida

no data

Tenure

₹18,000,000

Compensation

Mr. Jimmy William Almeida serves as a Managing Director of G.M. Breweries Limited and has been its Chairman since April 2010. Mr. Almeida served as Vice Chairman of G.M. Breweries Limited until April 2010...


CEO Compensation Analysis

Compensation vs Market: Jimmy's total compensation ($USD246.07K) is above average for companies of similar size in the Indian market ($USD44.32K).

Compensation vs Earnings: Jimmy's compensation has been consistent with company performance over the past year.


Board Members

NamePositionTenureCompensationOwnership
Jimmy Almeida
Executive Chairman & MDno data₹18.00m61.76%
₹ 4.7b
Jyoti Almeida
Whole Time Director22.5yrs₹12.00m1.99%
₹ 151.6m
Kiran Parashare
Whole Time Director7yrs₹2.10mno data
Paresh Trivedi
Independent Non Executive Director11yrs₹80.00k0.075%
₹ 5.7m
Dilip Diwan
Independent Non-Executive Director6.83yrs₹80.00kno data
Shantilal Haria
Independent Non Executive Director5.25yrs₹80.00kno data
Urmi Shah
Additional Non-Executive Independent Woman Directorno datano datano data
Shivani Soni
Additional Non-Executive Independent Woman Directorno datano datano data

8.9yrs

Average Tenure

58yo

Average Age

Experienced Board: GMBREW's board of directors are considered experienced (8.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

G.M. Breweries Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: G.M. Breweries Limited
  • Ticker: GMBREW
  • Exchange: NSEI
  • Founded: 1981
  • Industry: Brewers
  • Sector: Food, Beverage & Tobacco
  • Market Cap: ₹7.619b
  • Shares outstanding: 18.28m
  • Website: https://www.gmbreweries.com

Number of Employees


Location

  • G.M. Breweries Limited
  • Ganesh Niwas
  • S. Veer Savarkar Marg
  • Mumbai
  • Maharashtra
  • 400025
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
507488BSE (Mumbai Stock Exchange)YesEquity SharesININRAug 1995
GMBREWNSEI (National Stock Exchange of India)YesEquity SharesININRAug 1995

Biography

G.M. Breweries Limited engages in manufacturing and marketing of alcoholic liquor in India. Its alcoholic beverages include Indian made foreign liquor and country liquor. The company offers its products un...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/16 12:13
End of Day Share Price2021/01/15 00:00
Earnings2020/12/31
Annual Earnings2020/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.